Affordable Homeownership Across the Lone Star State
Texas is one of the most popular states in the country for homebuyers and for good reason. A strong job market, no state income tax, and a wide range of housing options from urban high-rises to suburban family homes make it an ideal place to put down roots.
But even in a state known for affordability, the upfront costs of buying a home can still feel out of reach, particularly for first-time buyers, those building credit, or families with limited savings. That’s where Texas FHA loans come in.
FHA loans are government-backed mortgages designed to make homeownership more accessible. With low down payment requirements, flexible credit guidelines, and competitive interest rates, they’ve helped millions of Americans achieve the dream of owning a home — and they’re one of the most popular loan types among Texas buyers.
At Arnaiz Mortgage, we’re proud to serve homebuyers in Texas with the personalized service, local market knowledge, and broker-level access to competitive rates that make the FHA process as smooth as possible.
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Get a quoteWhat Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because the federal government backs these loans, private lenders can offer more favorable terms, including lower down payments and more flexible qualification standards, to borrowers who might not meet the requirements for conventional financing.
FHA loans are available for single-family homes, condos, townhouses, manufactured homes, and multi-family properties (up to four units), provided the home serves as your primary residence.
Texas FHA Loan Requirements
FHA guidelines are set at the federal level, so the core requirements are the same whether you’re buying in Houston, Dallas, San Antonio, or a small town in the Hill Country. Here’s what Texas homebuyers need to know:
Credit Score: A minimum of 580 for a 3.5% down payment. Borrowers with lower credit scores may qualify with a 10% down payment.
Down Payment: As low as 3.5% of the purchase price. Down payment funds can come from personal savings, gift funds, employer assistance programs, or approved DPA programs — and Texas has some of the most generous assistance programs in the country.
Debt-to-Income Ratio (DTI): The standard FHA guideline is 43%, but some lenders may accept a DTI as high as 57% with strong compensating factors.
Employment and Income: Steady, verifiable income is required. You’ll typically need to provide two years of tax returns, W-2 forms, and recent pay stubs.
Primary Residence: FHA loans are for homes you plan to live in. Investment properties and vacation homes are not eligible.
Mortgage Insurance: FHA requires both an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount and an annual MIP that’s included in your monthly payment. If you put down less than 10%, MIP remains for the life of the loan. With 10% or more down, MIP can be removed after 11 years.
Property Standards: The home must pass an FHA appraisal to confirm its value and meet HUD’s minimum standards for safety, structural soundness, and livability.
FHA Loan Limits in Texas
FHA loan limits vary by county and are adjusted each year by HUD based on local home values. In Texas, most counties follow the national FHA floor for single-family homes, while higher-cost metro areas including parts of Dallas, Travis, Collin, Denton, and Harris counties may qualify for elevated limits.
Limits also increase for multi-unit properties (duplexes, triplexes, and four-plexes). For the most current limits for Texas FHA loans in your county, contact our team or visit HUD’s official loan limits page.
Texas Down Payment Assistance Programs
Texas offers one of the most robust collections of down payment assistance programs in the country. Many of these can be combined with FHA financing to reduce or eliminate your out-of-pocket costs at closing.
TDHCA — My First Texas Home — A 30-year fixed-rate mortgage program that provides up to 5% of the loan amount in down payment and closing cost assistance as a deferred, forgivable loan or a grant. Available to veterans and first-time buyers who meet income and credit score requirements (typically 620 minimum).
TSAHC — Home Sweet Texas — Offers between 3% and 5% of the loan amount as a grant (never requires repayment) or a forgivable second lien. Available statewide and compatible with FHA, VA, USDA, and conventional loans.
TSAHC — Homes for Texas Heroes — Provides the same 3% to 5% assistance with potentially reduced interest rates, available to teachers, first responders, nurses, corrections officers, veterans, and other qualifying professions.
SETH 5 Star Texas Advantage Program — Up to 5% of the loan amount as a forgivable community second loan, forgiven after three years. Available throughout most of Texas.
City-Level Programs — Many Texas cities offer their own assistance programs with varying benefit amounts, including Houston (up to $50,000), Dallas (up to $60,000), San Antonio, Austin, Fort Worth, El Paso, and others.
Our loan officers will help you identify every program you may qualify for and structure your financing to maximize the assistance available.
How the FHA Loan Process Works in Texas
Whether you’re in the heart of Dallas or a suburb of San Antonio, the Texas FHA loans process through Arnaiz Mortgage follows the same efficient, transparent path:
Step 1 — Initial Consultation. We learn about your goals, assess your financial situation, and recommend the right loan program — whether that’s FHA, VA, conventional, or another option.
Step 2 — Pre-Approval. Getting pre-approved puts you in a stronger position when making offers. We’ll verify your income, credit, and assets and issue a pre-approval letter.
Step 3 — Gather Documents. We’ll provide a clear checklist of everything you need: tax returns, pay stubs, bank statements, identification, and any additional documentation based on your situation.
Step 4 — Loan Application. Once you’ve found the right home and have an executed contract, we submit your application and coordinate with all parties involved.
Step 5 — Appraisal and Underwriting. The home is appraised to meet FHA standards, and our team completes the underwriting review.
Step 6 — Closing. Sign your documents, provide your remaining closing funds, and become a Texas homeowner.
With all documentation in order, many Texas FHA loans close within 30 days.
Why Choose Arnaiz Mortgage for Texas FHA Loans?
Statewide service, personal touch. We’re licensed to serve homebuyers across Texas — from Houston and Dallas to El Paso and everywhere in between — with the same one-on-one attention you’d expect from a local lender.
Broker access to competitive rates. We shop multiple lenders on your behalf to find the strongest rates and terms available for your situation.
DPA expertise across Texas. With dozens of city, county, and statewide programs available, we’ll help you identify the ones that put the most money back in your pocket.
Streamlined process. Our team handles coordination, communication, and timelines so you can focus on finding your home.
Ready to explore FHA financing in Texas?
Arnaiz Mortgage is here to help you find the right loan, connect with the right programs, and close on the right home.
