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White farmhouse used to illustrate an FHA purchase

FHA

FHA loans in Texas

An FHA loan is a government-insured mortgage that allows as little as 3.5% down with a 580+ credit score, plus upfront and annual mortgage insurance (MIP). In Texas, FHA limits vary by county; the county limit is checked during pre-approval.

FHA is often the practical path when the down payment is small or credit is still rebuilding. It is not a blank check, and it is not automatically a lower rate than conventional.

What the program usually looks like

  • Minimum down payment of 3.5% with a 580+ score. Scores from 500 to 579, if a lender allows them, generally need 10% down.
  • Upfront mortgage insurance, often 1.75% of the base loan, commonly financed.
  • Annual MIP on top of the payment. On many loans it lasts for the life of the loan if you put less than 10% down. A refinance into conventional later is how some buyers remove it.
  • Gift funds from a family member are commonly allowed.
  • The home must be a primary residence. A duplex can work if you live in one unit.
  • Seller concessions are capped. The exact cap depends on the down payment.

Collin, Dallas, and Denton county FHA limits are set by HUD each year and are not printed here, because a stale number is worse than none. We check the limit for the property address during pre-approval.

Sales price

Mortgage insurance: —

Buydown

Est. Closing Costs:

$6,000

1% of the loan amount, up to $6,000.

Additional Costs:

$0

Buydown and discount points cost.

Optional. A buydown lowers your rate for the first 1 to 3 years, then it returns to the estimated base rate.

Points

*Points lower your rate for the whole loan term.

The rate is illustrative. It is not today’s rate. A loan officer gives the exact rate and payment.

Estimated monthly

—

Enter a down payment to see your payment.

Estimates only, not a loan quote. This is an estimate for illustration only, not a quote, rate lock, or loan approval. Rates and terms depend on your full application.

Turn this estimate into a real pre-approval

Questions

Straight answers

What credit score do I need for FHA in Texas?

The FHA handbook allows 3.5% down at 580 and above. Individual lenders add their own minimums. We will tell you what our lenders will actually take on your file.

How much is the FHA down payment?

3.5% of the price for most buyers at 580+, or 10% if the score is between 500 and 579 and a lender will do the loan.

Does FHA mortgage insurance go away?

If you put less than 10% down, annual MIP usually stays for the life of that FHA loan. With 10% or more down, it can drop after 11 years. Refinancing into a conventional loan once you have 20% equity is the other way off.

FHA or conventional?

FHA can be easier with a smaller down payment or a thinner credit file. Conventional can win once you can put more down or want PMI that can be canceled. We compare both in pre-approval.

Can I use gift funds?

Yes, in most FHA purchases, with a gift letter and documentation that the money was not a loan.

What are FHA limits in Collin, Dallas, and Denton counties?

They are county limits published by HUD and they change. We use the figure for your address instead of posting a number that may already be old.

How much can the seller pay?

Seller concessions are allowed up to a cap that depends on the down payment, commonly 6% when you put little down. They can cover closing costs, not your down payment.

Can I buy a duplex with FHA?

Yes, up to a four-unit property, if you live in one unit as your primary home and the building meets FHA condition rules.

Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026

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