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FHA Loans

Texas

Last verified
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Assistance

3.5%

Of the purchase price, as the program sets it

Repayment

Grant

Not repaid

What is FHA Loans?

FHA Loans is a grant for homebuyers in Texas.

  • FHA-insured mortgages allow borrowers to purchase homes with a minimum 3.5% down payment (credit score 580+) or 10% down payment (score 500–579). The FHA insures the loan through participating private lenders. Borrowers pay an upfront MIP of 1.75% and an annual MIP (typically ~0.55%). 2026 FHA loan limits range from $541,287 (low-cost) to $1,249,125 (high-cost areas).
  • 3.5% minimum down payment.
  • Credit scores from 580 eligible.
  • Available statewide.
  • Combinable with DPA grants.
  • No income limit.
  • Funding comes from Federal.

How much assistance does it provide?

FHA Loans provides assistance worth 3.5% of the purchase price, as set by the program.

  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

FHA Loans is structured as a grant, so it is not repaid.

  • The assistance is recorded in Grant (no lien) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

FHA Loans is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A minimum 580 credit score
  • Citizenship or immigration status: yes

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

FHA Loans sets its income limit as follows: No income limit for FHA loans.

  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

FHA Loans can be used for Single-family.

  • New construction is eligible.

Where does it apply?

FHA Loans serves buyers purchasing anywhere in Texas.

How do you apply?

Applications for FHA Loans go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Contact the administering agency to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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