If you’re considering applying for an FHA loan, you might assume the requirements are the same everywhere. But while the core program is federally regulated, there are important state-level differences that every homebuyer should understand—especially if you’re buying in Texas.
In this article, we’ll compare national FHA loan guidelines with Texas-specific FHA requirements, so you can better prepare for your mortgage journey and avoid surprises.
FHA Loans: What Stays the Same Nationwide
The Federal Housing Administration (FHA) sets minimum eligibility requirements that apply across all 50 states. These federal standards serve as the baseline for FHA-approved lenders nationwide.
Standard FHA Loan Guidelines Include:
- Minimum credit score: 580 with 3.5% down; 500–579 with 10% down
- Down payment: 3.5% minimum (can be gifted)
- DTI ratio limit: Typically up to 43%
- Mortgage insurance: Upfront MIP and monthly MIP required
- Property standards: Must meet HUD appraisal and safety guidelines
- Loan type: Must be for a primary residence
These are the non-negotiable requirements that lenders in all states, including Texas, must adhere to in order to offer FHA-insured loans.
For a full overview of these nationwide FHA loan requirements, visit:
https://www.herringbank.com/mortgage/fha-loan/
FHA Loans in Texas: What’s Different?
While FHA standards originate at the national level, Texas FHA loans are shaped by local factors like housing prices, state assistance programs, and lender preferences. Here are the key differences that set Texas apart.
- FHA Loan Limits in Texas
One of the biggest differences is the FHA loan limit, which is adjusted by county to reflect local housing costs. For 2025:
- Most Texas counties: $498,257 limit for single-family homes
- Higher-cost counties (e.g. Travis County, Harris County): Limits can reach up to $621,000+
These limits are lower than in coastal states like California or New York but higher than many midwestern or rural areas outside Texas.
- Texas Property Types and Zoning
Texas has a mix of urban, suburban, and rural housing. FHA appraisals may face unique conditions based on property type:
- Manufactured homes are more common in rural Texas and must meet specific HUD standards
- Farm properties or land-heavy purchases may not qualify unless the primary value is the residential dwelling
- Flood zones, especially in Houston or South Texas, require specific insurance coverage and may delay approval
- Down Payment Assistance in Texas
Texas buyers have access to several state-level down payment assistance (DPA) programs that work well with FHA loans:
- TDHCA My First Texas Home Program
- Texas State Affordable Housing Corporation (TSAHC)
These programs can reduce upfront costs significantly, sometimes covering the entire down payment and even part of closing costs. Requirements vary, but often include income limits and first-time buyer status.
- Title and Closing Processes
Texas follows a title company model for closing, rather than attorney-led closings common in the Northeast. This can simplify and speed up the FHA loan closing timeline in most cases.
- Local Lender Guidelines and Overlays
While FHA guidelines are federal, lenders often apply additional requirements, called overlays. For example, some Texas lenders may:
- Require a minimum credit score of 620, even if FHA allows 580
- Set stricter limits on recent bankruptcies or delinquencies
- Request additional documentation for self-employed buyers
Working with a Texas-based lender that specializes in FHA loans can help you navigate these overlays efficiently.
Why FHA Loans Work Well in Texas
Texas is a great fit for FHA financing for several reasons:
- Affordable housing markets: Outside major metros, prices often fall within FHA limits
- First-time buyer programs: Strong DPA and education resources
- Growing population: Many new residents need starter homes
- Diverse property types: FHA loans accommodate a wide range of housing options, including condos and townhomes
Whether you’re buying in Austin, San Antonio, or a small town in East Texas, FHA loans offer flexibility that many buyers need.
Final Thoughts: National Program, Local Rules
FHA loans offer a strong foundation for affordable homeownership across the country. But the way those loans play out in Texas depends on local property values, available programs, and lender-specific rules.
If you’re a first-time homebuyer or someone looking for a low down payment loan in Texas, it’s important to understand how the national FHA framework works in your local market.
For Texas-specific FHA information, including local requirements and resources, visit:
https://www.herringbank.com/mortgage/fha-loan/texas/
