A Texas FHA loan follows the same HUD rules as anywhere else — 3.5% minimum down payment with a 580+ credit score, owner-occupancy, and county loan limits — but Texas buyers should budget carefully for property taxes, which are often the biggest variable in qualifying. FHA can frequently be paired with state assistance from TDHCA or TSAHC when funds are available, subject to program and lender guidelines.
Texas FHA loans follow national HUD rules
There isn't a separate “Texas FHA loan” program. An FHA loan in Texas is the same HUD-insured mortgage available in other states, made by a private lender and insured by the Federal Housing Administration. The core guidelines are identical:
- Down payment: 3.5% minimum with a credit score of 580 or higher; 10% generally required for scores from 500 to 579. See FHA down payment.
- Credit: FHA sets the floor, lenders often set higher minimums. See FHA credit score requirements.
- Occupancy: you must live in the home as your primary residence, generally moving in within 60 days of closing.
- Property: 1–4 units, meeting FHA's Minimum Property Standards.
- Mortgage insurance: upfront and annual MIP, described on the FHA mortgage insurance page.
What changes in Texas is everything around the loan: how taxes are assessed, how the purchase contract works, which assistance programs exist, and how title insurance is priced. Those details affect your budget and your timeline more than most buyers expect. HUD guidelines change and lenders may add overlays — Matthew will confirm the current rules for your file.
Is a Texas FHA purchase worth reviewing?
A few yes / no questions to see where you stand before you talk with Matthew. Orientation only — not a loan decision.
Will the Texas home be your primary residence?
Is your credit score 580 or higher, as far as you know?
Have you looked at the property tax rate for the area you're shopping in?
Do you have savings or a documented gift for the down payment and closing costs?
Is the home in a new subdivision with a MUD, PID, or HOA?
Your answers stay in your browser — nothing is saved or sent. This is a quick orientation, not a loan decision.
Property taxes and the homestead exemption
Texas has no state income tax, and local governments lean heavily on property taxes instead. For FHA buyers, that matters because your estimated monthly taxes are part of your housing expense — and your housing expense drives your debt-to-income ratio. In many Texas neighborhoods, taxes change the qualifying picture as much as the price does.
Why the seller's tax bill can mislead you
The tax bill on a listing reflects the seller's value and exemptions — maybe a homestead exemption, an over-65 freeze, or a disabled Veteran exemption. After you buy, the home is typically reassessed for you, and those personal exemptions don't transfer. Lenders usually estimate taxes from the purchase price and current local rates, not the seller's bill.
Rates stack up by location
A single address can be taxed by the county, city, school district, community college district, hospital district, and special districts such as a MUD (municipal utility district) or PID (public improvement district). Two homes a few miles apart can have noticeably different totals.
The homestead exemption. Once you own and occupy the home as your principal residence, you can generally apply for a residence homestead exemption with your county appraisal district. It lowers the taxable value for school district taxes (and sometimes other taxing units) and limits how much the appraised value of your homestead can rise each year. It won't usually help you qualify at purchase — the lender generally budgets without it — but it can lower your costs once it's in place. Details and forms are on the Texas Comptroller's property tax exemptions page.
Want a straight answer for your situation? Skip the call center — Matthew will review your credit, budget, and FHA options himself.
Talk with MatthewPairing FHA with TDHCA or TSAHC assistance
Texas has two statewide agencies whose programs are commonly paired with FHA financing. Availability, income limits, purchase price limits, and terms change often — sometimes several times a year — so treat this as a starting point, not a guarantee.
TDHCA
The Texas Department of Housing and Community Affairs offers My First Texas Home and related programs that may provide down payment and closing cost assistance to eligible buyers, often first-time buyers or those who haven't owned recently, with income and purchase price limits.
TSAHC
The Texas State Affordable Housing Corporation runs Homes for Texas Heroes (for eligible teachers, first responders, Veterans, and other qualifying professions) and Home Sweet Texas (for eligible low- and moderate-income buyers), which may offer down payment assistance.
FHA allows government and approved nonprofit assistance as a source of funds, but each program has its own lender approvals, education requirements, and repayment or forgiveness terms. Some assistance is a grant, some is a deferred or forgivable second lien. Matthew will confirm which programs he can currently offer with FHA and whether you're likely to fit their rules.
For a plain-English overview of Texas programs, city and county options, and eligibility basics, visit Texas DPA Programs. More on how gifts and assistance work with FHA is on the FHA down payment page.
Texas-specific contract and closing items
Texas uses standardized contract forms promulgated by the Texas Real Estate Commission, and a few features catch out-of-state buyers by surprise:
- The option period. Most Texas contracts include an option period — a negotiated number of days during which the buyer, for a small option fee paid to the seller, can terminate for any reason. That's when inspections happen. Keep in mind that the FHA appraisal usually comes later, so plan repair conversations with both in mind.
- The Third Party Financing Addendum. This addendum ties the contract to your ability to obtain financing and to the property's approval by the lender. Matthew will help your agent set realistic dates for buyer approval and property approval on an FHA loan.
- The survey. Lenders and title companies generally want a survey. If the seller has an existing survey and nothing has changed, a T-47 affidavit may allow it to be reused; otherwise a new survey is ordered. Who pays is negotiated in the contract.
- Title insurance. In Texas, title insurance premiums are set by the state through the Texas Department of Insurance, so the premium for a given coverage amount is generally the same whichever title company you use. Service and responsiveness still vary, which is what agents compare.
- FHA's amendatory clause. Every FHA purchase includes a clause stating the buyer isn't obligated to complete the purchase or forfeit earnest money if the appraised value comes in below the price, unless the buyer chooses to proceed. Your agent will attach it with the contract.
Refinancing later? Texas homestead cash-out loans must follow Section 50(a)(6) of the Texas Constitution, and FHA generally doesn't insure those loans — so an FHA cash-out usually isn't the route on a Texas homestead. Matthew will confirm your options (a conventional Texas cash-out or a HELOC, for example). See FHA cash-out refinance.
FHA loan limits vary across Texas counties
FHA mortgage limits are set by county and updated every year. Many rural Texas counties sit at the national “floor,” while higher-cost metro counties can have higher limits. Limits also differ by the number of units — a duplex, triplex, or fourplex has a higher limit than a single-family home in the same county.
Rather than rely on a number that may be outdated by the time you read it, look up the current figure for your county in HUD's FHA mortgage limits lookup, or ask Matthew to check it. The limit caps the base loan amount, not the price you can offer; a larger down payment can bridge the gap on a pricier home. More detail is on the FHA loan limits page.
| Texas situation | What to check |
|---|---|
| Shopping in a large metro such as Austin, Dallas–Fort Worth, Houston, or San Antonio | Current county limit for the specific county — metro areas span several counties |
| Buying a duplex to live in one side | The two-unit limit, plus how rental income may be counted |
| Rural or small-town purchase | The county limit, and whether USDA might also be worth comparing |
| Fixer-upper | Limits apply to renovation loans too — see Texas Renovation Loans |
Fixer-uppers, older homes, and alternatives
Plenty of Texas homes — older Austin bungalows, rural properties, homes that have sat vacant — won't pass FHA's property standards as-is. If a home needs more than a few small repairs, an FHA 203(k) renovation loan may let you finance the purchase and the repairs together. Texas-specific renovation guidance is on Texas Renovation Loans, and the national program details are on FHA 203(k) Info. A short overview is on FHA special programs.
FHA isn't the only low-down-payment option in Texas, either. Eligible Veterans and service members may want to compare a VA loan (see VA Express Loans), and buyers in eligible rural areas may want to compare USDA (see USDA Express Loans). Matthew can put the programs side by side for the same property.
Working with an Austin-based mortgage broker
Matthew Brown is based in Austin and works with Texas buyers across the state. You deal with him directly — not a call center — from the first budget conversation through closing.
- Address-level estimates. Taxes, insurance, HOA, and MUD or PID assessments for the specific home, so your pre-approval reflects reality.
- Assistance review. Which TDHCA or TSAHC options are currently available with FHA, and whether you're likely to fit their rules.
- Contract coordination. Realistic dates for the Third Party Financing Addendum, and clear communication with your agent about the appraisal and any repairs.
Buying outside Texas too? Matthew is licensed in multiple states, not everywhere — tell Matthew where you're buying and he'll confirm he can help there. Your information goes to Matthew only — it isn't sold to lead lists.
Frequently asked questions
Is there a special FHA loan just for Texas?
No. FHA loans in Texas follow the same national HUD guidelines. What's different is the local picture: property taxes, state assistance programs, contract forms, and state-set title insurance premiums.
Why are property taxes so important for Texas FHA buyers?
Your estimated taxes are part of your housing expense, which affects your debt-to-income ratio. Texas taxes can vary a lot by location, so they can change how much home you qualify for. Lenders generally estimate taxes without the seller's exemptions.
When do I apply for the Texas homestead exemption?
Generally after you own and live in the home as your principal residence, by applying with your county appraisal district. Check the appraisal district's current forms and deadlines, or see the Texas Comptroller's property tax exemptions page.
Can I use TDHCA or TSAHC assistance with an FHA loan?
Often, yes, when funds are available and you meet the program's income, price, and other rules, and the lender participates. Programs change often; Matthew will confirm current availability. See Texas DPA Programs.
How do I find the FHA loan limit for my Texas county?
Use HUD's FHA mortgage limits lookup or ask Matthew to look it up. Limits change yearly and vary by county and number of units.
Ask Matthew about your FHA home loan
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
Prefer to start now? Start your pre-approval · Schedule a call · (512) 952-1125
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