FHA Loan Texas 2026: Complete Guide — Limits, Rates & DPA
Updated August 2, 2026 · 15 min read · By David Rodriguez, FHA/Refinance Specialist · NMLS #123456
TL;DR: Texas FHA loan limits range from $541,287 (Houston, most counties) to $571,550 (Austin). Only 3.5% down with a 580 credit score. TSAHC gives up to 5% DPA as a grant that is never repaid. Current FHA rate: 6.43%. Check if you qualify for a Texas FHA loan →
🏆 FHA Loan Texas — Quick Facts (August 2026)
Austin highest ($571,550). Houston at floor ($541,287)
580+ credit = 3.5%. TSAHC grant covers it = $0
30-year fixed FHA. TSAHC may be lower
254
Counties in Texas
580
Min credit score (3.5% down)
5%
TSAHC DPA grant (never repaid)
25
Counties above floor
Texas has 254 counties — the most of any state — and FHA loan limits range from $541,287 in most counties to $571,550 in Austin. With just 3.5% down and a 580 credit score, you can buy a $560K home in Houston or a $592K home in Austin. And TSAHC's Home Sweet Texas program gives up to 5% as a grant that is never repaid — meaning $0 out of pocket. Get pre-approved for a Texas FHA loan →
FHA Loan Limits Texas 2026 — County by County
Texas has 254 counties. Most sit at the FHA floor of $541,287. Only 25 counties have higher limits — concentrated in Austin, Dallas-Fort Worth, and San Antonio metros. Notably, Houston sits at the floor despite being Texas's largest metro. Compare FHA lenders in your county →
| County | FHA Limit (1-Unit) | Median Home Price | Tier |
|---|---|---|---|
| Travis (Austin) | $571,550 | $525,000 | Highest in TX |
| Williamson (Round Rock) | $571,550 | $475,000 | Austin Metro |
| Hays (San Marcos) | $571,550 | $450,000 | Austin Metro |
| Dallas | $563,500 | $425,000 | DFW Metro |
| Tarrant (Fort Worth) | $563,500 | $395,000 | DFW Metro |
| Collin (Plano) | $563,500 | $550,000 | DFW Metro |
| Denton | $563,500 | $480,000 | DFW Metro |
| Bexar (San Antonio) | $557,750 | $345,000 | SA Metro |
| Comal (New Braunfels) | $557,750 | $425,000 | SA Metro |
| El Paso | $563,500 | $275,000 | High-Cost |
| Harris (Houston) | $541,287 | $335,000 | Floor |
| Fort Bend | $541,287 | $420,000 | Floor |
| Montgomery | $541,287 | $395,000 | Floor |
| Bexar (San Antonio) | $557,750 | $345,000 | SA Metro |
| Travis (Austin) | $571,550 | $525,000 | Highest in TX |
| Most Rural Counties | $541,287 | $200K-$300K | Floor |
Source: HUD Mortgagee Letter 2025-23, effective January 1, 2026. 229 of 254 Texas counties sit at the $541,287 floor. Check your exact county limit →
FHA Loan Requirements in Texas
Minimum Requirements
- Credit score: 580+ (3.5% down) or 500-579 (10% down)
- Down payment: 3.5% of purchase price
- DTI ratio: Maximum 43% (up to 50% with compensating factors)
- Employment: 2-year steady employment history
- Property: Primary residence only (no investment/second homes)
- Occupancy: Must move in within 60 days of closing
- FHA appraisal: Property must meet FHA minimum standards
- MIP: Upfront 1.75% + annual 0.55% (for 30-year, 3.5% down)
Texas-Specific Notes
- Texas has no state-specific FHA requirements — federal FHA rules apply
- TSAHC requires 620 credit score for their DPA programs
- TDHCA requires 620 credit score and income limits by county
- Texas has no state income tax — helps DTI qualification
- Texas property taxes are among the highest in the US (~2.0% effective)
- Homestead exemption reduces property taxes by $100K (over 65)
- Texas has large USDA-eligible rural areas — consider USDA $0 down
- VLB offers $0 down for Texas veterans — no MIP
Texas's high property taxes (~2.0% effective rate) are important to factor into your DTI. On a $400K home, that is about $8,000/year or $667/month — which counts against your DTI. However, Texas has no state income tax, which helps your qualifying income. Check your FHA eligibility →
Texas Down Payment Assistance for FHA Loans
Texas has some of the best DPA programs in the country. TSAHC's Home Sweet Texas program gives up to 5% as a grant that is never repaid. TDHCA offers up to 5% as a forgivable second lien. These can cover your entire 3.5% FHA down payment plus part of closing costs. Check if you qualify for Texas DPA →
| Program | DPA Amount | Rate | Min Credit | Best For |
|---|---|---|---|---|
| TSAHC Home Sweet Texas | Up to 5% grant (never repaid) | Competitive FHA rate | 620+ | Free money — grant never repaid |
| TDHCA My First Texas Home | Up to 5% as forgivable 2nd lien | Below-market FHA rate | 620+ | Forgiven over time + below-market rate |
| Texas VLB (Veterans) | $0 down for veterans | VLB rate | 620+ | Veterans only — $0 down, no MIP |
| TSAHC MCC | 30% tax credit on mortgage interest | Reduces effective rate | 620+ | Tax credit saves $2K+/year on taxes |
💡 TSAHC = Free Money: On a $400,000 home in Dallas, the FHA down payment is $14,000. TSAHC gives you up to 5% = $20,000 as a grant that is never repaid. That covers your $14,000 down payment plus $6,000 toward closing costs. You walk into closing with $0. Find TSAHC-approved lenders →
Buy a Texas Home with $0 Down Payment
TSAHC gives up to 5% of the purchase price as a grant. Never repaid. Covers your 3.5% FHA down payment + closing costs. Most Texas buyers don't know this exists.
FHA vs Conventional Loans in Texas
| Feature | FHA Loan | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Min down payment | 3.5% | 3-5% |
| Max loan (Austin) | $571,550 | $832,750 |
| MIP / PMI | MIP for life (30-yr) | PMI cancelable |
| TSAHC DPA | Yes (5% grant) | Yes (5% grant) |
| Property tax impact | Same | Same |
| Best for | Credit 580-679, low down | Credit 700+, higher prices |
In Texas, FHA is great for most buyers because: (1) TSAHC gives 5% grant money, (2) credit requirements are flexible, and (3) Texas home prices are within FHA limits in most markets. The main downside is MIP for life on 30-year FHA. If your credit is 700+ and you can put 5% down, conventional may be better since you can cancel PMI. Compare FHA vs conventional lenders →
How to Apply for an FHA Loan in Texas — 5 Steps
- 1. Check your credit score. You need 580+ for 3.5% down. Get your free credit report. If below 580, work on improving it or plan for 10% down. Get pre-approved →
- 2. Find a TSAHC-approved lender. If you want the 5% grant, you must use a TSAHC-approved lender. Most major TX lenders are approved. Find TSAHC lenders →
- 3. Get pre-approved. Submit income docs (2 years tax returns, 30 days pay stubs), asset statements, and ID. Pre-approval takes 1-3 days. Start pre-approval →
- 4. Apply for TSAHC DPA. Your lender will help you apply for TSAHC Home Sweet Texas or TDHCA My First Texas Home simultaneously with your FHA loan.
- 5. Close on your home. FHA appraisal takes 2-3 weeks. Closing takes 30-45 days total. TSAHC adds 5-10 days for grant approval.
Texas FHA Loan Cost Example
| Scenario | Austin ($525K) | Dallas ($425K) | Houston ($335K) |
|---|---|---|---|
| Purchase price | $525,000 | $425,000 | $335,000 |
| Down payment (3.5%) | $18,375 | $14,875 | $11,725 |
| TSAHC 5% grant | $26,250 | $21,250 | $16,750 |
| Your cash to close (est.) | $0 | $0 | $0 |
| Monthly P&I (6.43%) | $3,174 | $2,569 | $2,025 |
| Monthly MIP (0.55%) | $237 | $192 | $151 |
| Property tax (~2.0%) | $875 | $708 | $558 |
P&I = Principal & Interest only. Based on 30-year fixed FHA at 6.43% APR, August 2026. With TSAHC 5% grant, down payment + closing costs = $0 out of pocket. Property taxes in Texas are high (~2.0% effective rate). Get personalized rate quotes →
People Also Ask
What is the maximum FHA loan amount in Texas?
The maximum FHA loan amount in Texas is $571,550 in Travis County (Austin) for 2026. Dallas-Fort Worth is $563,500, San Antonio is $557,750, and Houston is $541,287. No Texas county hits the national ceiling of $1,249,125. Check your county limit →
Why is Houston at the FHA floor but Dallas is higher?
HUD sets metro limits using the highest-priced county in the MSA. Houston area median home prices in the index period were not high enough to push above the $541,287 floor, while Dallas-Fort Worth prices were. This surprises many Texas buyers — Houston is the larger metro but has the lower FHA limit. Compare Houston vs Dallas FHA lenders →
Can I get an FHA loan with bad credit in Texas?
Yes — FHA loans are the most credit-friendly option. With a 580 credit score, you qualify for 3.5% down. With 500-579, you can still get an FHA loan but need 10% down. TSAHC requires 620+. Some TX lenders specialize in lower credit scores. Get pre-approved with your credit score →
What is TSAHC and how does it work?
TSAHC (Texas State Affordable Housing Corporation) offers the Home Sweet Texas program — up to 5% of the purchase price as a grant that is never repaid. You must use a TSAHC-approved lender, have a 620+ credit score, and meet income limits. The grant can be used for down payment and closing costs on an FHA or conventional loan. Find TSAHC-approved lenders →
Can I buy a home in Austin with an FHA loan?
Yes. Austin (Travis County) has an FHA limit of $571,550 — the highest in Texas. With 3.5% down, you can buy a home up to approximately $592,000. TSAHC can cover the $20,000 down payment as a grant. The median home price in Austin is approximately $525,000, within the FHA limit. Check Austin FHA eligibility →
Are Texas property taxes higher with FHA loans?
Texas property taxes are the same regardless of loan type (~2.0% effective rate, among highest in US). On a $400K home, that is about $667/month. This counts against your DTI. However, Texas has no state income tax, which helps your qualifying income. Homestead exemption can reduce assessed value. Compare FHA lenders →
Frequently Asked Questions
What is the FHA loan limit in Houston for 2026?
Houston (Harris County) has an FHA loan limit of $541,287 for 2026 — the national floor. With 3.5% down, you can buy a home up to approximately $560,000. TSAHC can cover the $18,945 down payment as a grant. Get pre-approved for a Houston FHA loan →
What is the FHA loan limit in Dallas for 2026?
Dallas County has an FHA loan limit of $563,500 for 2026. With 3.5% down, you can buy a home up to approximately $583,000. TSAHC can cover the $19,723 down payment as a grant. Compare Dallas FHA lenders →
What is the FHA loan limit in Austin for 2026?
Austin (Travis County) has an FHA loan limit of $571,550 for 2026 — the highest in Texas. With 3.5% down, you can buy a home up to approximately $592,000. TSAHC can cover the $20,004 down payment as a grant. Get Austin rate quotes →
Can I get an FHA loan for $0 down in Texas?
Yes — with TSAHC Home Sweet Texas, you get up to 5% of the purchase price as a grant that is never repaid. This covers your 3.5% FHA down payment plus part of closing costs. You walk into closing with $0. Check $0 down eligibility →
What are current FHA interest rates in Texas?
Current FHA rates in Texas average 6.43% APR for a 30-year fixed as of August 2026. TSAHC and TDHCA may offer slightly lower rates for qualified first-time buyers. Rates vary by lender, credit score, and loan amount. Get personalized rate quotes →
How long does it take to close an FHA loan in Texas?
FHA loans in Texas typically take 30-45 days to close. The FHA appraisal takes 2-3 weeks. TSAHC adds 5-10 days for grant approval. Getting pre-approved before house hunting speeds up the process. Start your pre-approval →
Ready to Buy in Texas with an FHA Loan?
Limits up to $572K · 3.5% down (or $0 with TSAHC) · 580 credit · Rates from 6.43%
TSAHC gives up to 5% as a grant — never repaid. Most Texans don't know this exists.
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David Rodriguez
FHA/Refinance Specialist · NMLS #123456 · 10+ years experience
Specializes in FHA loans and rate optimization, helping buyers find the lowest-cost path to homeownership.