Low Down Payment
Only 3.5% down with a 580+ credit score
Flexible Credit
Qualify with credit scores as low as 580
Gift Funds OK
Use gift money for your down payment
What is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration, making it easier for first-time homebuyers and those with lower credit scores to qualify for a home loan. These loans are perfect for Texas homebuyers who want to purchase a home but don't have a large down payment saved up.
FHA Loan Benefits
- Low Down Payment: Just 3.5% down with a credit score of 580 or higher
- Flexible Credit Requirements: Qualify with credit scores as low as 580
- Gift Funds Allowed: 100% of down payment can come from gift funds
- Competitive Rates: Often lower rates than conventional loans
- Higher DTI Allowed: Debt-to-income ratios up to 50% with compensating factors
- Assumable: FHA loans can be assumed by future buyers
FHA Loan Requirements
Credit Score
- 580+ for 3.5% down payment
- 500-579 for 10% down payment
- Recent bankruptcy OK (2 years)
- Recent foreclosure OK (3 years)
Income & Employment
- 2 years stable employment history
- Verifiable income documentation
- Max 50% DTI with compensating factors
- Self-employed borrowers welcome
FHA Loan Limits in Texas
FHA loan limits vary by county in Texas. Most areas have limits around $498,257 for a single-family home, with higher limits in high-cost areas like Austin and Dallas.
Frequently Asked Questions
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help first-time homebuyers and those with lower credit scores. It requires only 3.5% down payment with a 580+ credit score.
What credit score do I need for an FHA loan?
You need a minimum 580 credit score for the 3.5% down payment option. With a score between 500-579, you can still qualify but need 10% down.
How much down payment do I need for FHA?
FHA loans require a minimum 3.5% down payment with a 580 or higher credit score, or 10% down with a credit score between 500-579.
Can I use gift funds for my FHA down payment?
Yes! FHA allows 100% of your down payment and closing costs to come from gift funds from family members, employers, or approved organizations.
Calculate Your Monthly Payment
Use our mortgage calculator to estimate your monthly payments, understand how down payment affects your loan, and explore different scenarios for your FHA home purchase.
Estimated Monthly Payment
$2,206.58/mo
Principal & Interest
$1,706.58
Taxes
$400.00
Insurance
$100.00
Loan amount: $270,000 · This is an estimate only. Actual payments depend on program, lender, mortgage insurance, HOA, and underwriting. Not a commitment to lend.
Find Your Perfect Neighborhood First
Before you apply for your FHA loan, explore Texas neighborhoods with Neighborhood Mojo. Compare schools, safety scores, commute times, and market data to make an informed decision about where to buy.
Explore Neighborhoods →Ready to Get Started?
Apply online through our secure Loan Factory portal, or call Ken directly for a personal consultation. There's no obligation for a pre-qualification review.
Applications processed securely through Loan Factory, Inc. NMLS #320841 · Ken Harmon NMLS #921561
Important Disclosures
Programs, rates, terms, and conditions are subject to change without notice and are subject to credit and underwriting approval. Not all applicants will qualify. Loan amounts, interest rates, and program availability may vary based on individual circumstances, lender guidelines, and current market conditions. This is not a commitment to lend.
Ken Harmon, NMLS #921561. Loan Factory, Inc. NMLS #320841. Licensed to originate mortgage loans in the State of Texas. Verify licensing at nmlsconsumeraccess.org.
Equal Housing Opportunity.
Ready to Get Pre-Approved for an FHA Loan?
Call Ken Harmon today for personalized assistance with your Texas FHA loan
NMLS #921561