Texas FHA Loan Cost Data 2026
| County / Area | FHA Loan Limit (2026) | Notes |
|---|---|---|
| Standard TX counties | $541,287 in most TX counties (incl. Harris) | Most counties in Texas |
| High-cost metros | $557,750 in the San Antonio metro, $563,500 in Dallas-Fort Worth, $571,550 in the Austin metro | Verify at hud.gov |
| Minimum down payment (580+ score) | 3.5% of purchase price | FHA program requirement |
| Upfront MIP | 1.75% of loan amount | Can be rolled into loan |
| Annual MIP (30-yr, <10% down) | 0.55–0.85% of loan | Permanent on 30-yr FHA loans |
Top FHA Loan Providers in Texas
| Provider | Notes | Link |
|---|---|---|
| Rocket Mortgage | Online lender; digital pre-approval in Texas | Visit Site → |
| Freedom Mortgage | National FHA and VA lender; active in Texas | Visit Site → |
| Caliber | Strong VA focus; well-distributed in Texas | Visit Site → |
| USAA | Military focus; competitive VA rates in Texas | Visit Site → |
| PennyMac | Large FHA servicer; competitive rates; fully licensed in TX | Visit Site → |
| AmeriSave | Online lender; strong FHA pricing for TX borrowers | Visit Site → |
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Texas Law and Requirements
Texas mortgage transactions are governed by Texas statutes. Property taxes are escrowed with your monthly payment. FHA loans are federally insured by HUD under the National Housing Act — check current TX FHA limits at HUD.gov.
Key Terms
- APRAnnual Percentage Rate — includes interest plus fees, making it a truer cost comparison than the rate alone.
- DTIDebt-to-Income ratio — monthly debt ÷ gross income. Most lenders require below 43%.
- LTVLoan-to-Value ratio — loan ÷ appraised value. Below 80% avoids PMI on conventional loans.
- PMIPrivate Mortgage Insurance — required with <20% down on conventional loans; cancels at 78% LTV.
- Pre-ApprovalA lender's conditional commitment to lend; stronger than pre-qualification in competitive markets.
- Closing CostsFees paid at settlement — typically 2–5% of loan. Includes title insurance, origination, and taxes.
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How to Get an FHA Loan in Texas — Step by Step
Check credit score and pull free report
Most Texas lenders require 620+ for conventional, 580+ for FHA (3.5% down), or 500–579 for FHA (10% down). Pull free reports at annualcreditreport.com. Dispute any errors 90+ days before applying — each point above 720 can lower your rate.
Calculate true housing cost in Texas
Beyond P&I: add property taxes (Texas homeowners paid a median $4,232 a year, Census ACS 2024 5-year), homeowners insurance, HOA if applicable, and PMI if <20% down. In Texas, total housing cost runs well above the loan payment alone.
Explore Texas DPA programs
My First Texas Home (5% DPA) · Homes for Texas Heroes. Income and purchase price limits apply. Contact the Texas Housing Finance Agency or HUD-approved housing counselor for current eligibility details.
Get pre-approved before making offers
In Texas's competitive markets, a full pre-approval (verified income/assets) is standard — stronger than pre-qualification. Submit to 2–3 lenders simultaneously; multiple hard inquiries within 45 days count as one on your credit report.
Budget for Texas closing costs
Texas closing costs typically run 1.5–3.5% of loan amount. FHA-specific costs: 1.75% upfront MIP, plus appraisal and standard lender fees.
Lock your rate at the right time
Once under contract, lock your rate promptly. Rate lock periods of 30–60 days are standard. Confirm your lock expiration covers the expected closing date — extensions cost money if the closing is delayed.
Frequently Asked Questions — Texas FHA Loan
What is the average mortgage rate in Texas in 2026?
Texas borrowers price against the national 30-year fixed average: 7.28% in Freddie Mac's Primary Mortgage Market Survey for the week of October 1, 2026, with the 15-year fixed at 6.60%. Local quotes vary by credit score, down payment, loan type and lender. Compare multiple lenders — at that rate, a 0.25-point difference on a $400K loan changes the payment by about $68 a month.
What is the FHA loan limit in Texas in 2026?
FHA loan limits in Texas: $541,287 in most TX counties (incl. Harris); $557,750 in the San Antonio metro, $563,500 in Dallas-Fort Worth, $571,550 in the Austin metro. Source: HUD's CY2026 FHA forward limits (Mortgagee Letter 2025-23); limits adjust annually. If your purchase price exceeds the FHA limit for that county, a conventional or jumbo loan is required.
What are typical closing costs in Texas?
Texas closing costs average 1.5–3% of the loan amount. Key costs: lender origination fees (0.5–1%), title insurance (required by most lenders), appraisal ($400–$700), and state-specific transfer or recording fees. Negotiate seller concessions in buyer-friendly markets to offset these.
What credit score do I need for a mortgage in Texas?
Conventional loans: 620+ minimum (better rates above 740). FHA: 580+ for 3.5% down, 500–579 for 10% down. VA: No minimum per guidelines but lenders typically require 620+. Individual lenders often impose overlays above program minimums — shop multiple lenders if your score is in the 580–660 range.
What is the median home price in Texas in 2026?
Texas's median home price varies widely by metro. FHA loan limits of $541,287 in most TX counties (incl. Harris) cover most standard purchase transactions in the state. High-cost metros like major metros have higher limits.
How long does mortgage approval take in Texas?
Purchase mortgage approval in Texas typically takes 30–45 days from complete application to closing. FHA loans may take slightly longer if the appraisal requires repairs. Streamline refinances can close in 20–30 days. Have all documents ready: 2 years W-2s/tax returns, 30 days pay stubs, 2 months bank statements.
Does Texas have a property tax exemption for homeowners?
Texas offers a homestead exemption that reduces assessed value for primary residences — file with your county appraisal district. File an application with your county assessor by the annual deadline.
Can I buy a home in Texas with no money down?
VA loans (military/veterans) allow 0% down in Texas with no PMI. USDA loans allow 0% down for eligible rural properties in Texas. Down payment assistance programs (My First Texas Home (5% DPA)) can effectively reduce out-of-pocket costs to near zero for eligible buyers. Confirm current program availability — funding is limited and programs open/close.
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