Median Sale Price
$343,779
Texas statewide median — below the national $417,700 median
+0.9% YoYTexas · FHA LoansFHA Loans in Texas:
FHA Loans in Texas:
Requirements, Limits & Assistance Programs
3.5%Min. down payment
580Min. credit score
$541,287FHA loan limit — most Texas counties
43%Max debt-to-income ratio
The short version
FHA in Texas at a Glance
FHA loans are government-backed mortgages that let Texas buyers put as little as 3.5% down with a credit score of 580 or higher.
3.5%
Min. down payment (580+ score)
10%
Down payment if score 500–579
1.75%
Upfront mortgage insurance premium (MIP)
FHA loans are insured by the Federal Housing Administration and originated by FHA-approved lenders like Intra-Mortgage. Texas is a strong FHA market — but the number that trips buyers up here isn't the rate, it's property tax. Texas has no state income tax and, in return, some of the highest property-tax rates in the country. That tax is part of your monthly payment, so it feeds directly into the debt-to-income ratio underwriting checks.
Texas-specific note: Most Texas counties use the 2026 FHA floor of $541,287. The fast-growing metros are the exception: the Austin area (Travis, Williamson) and much of Dallas–Fort Worth (Collin, Dallas, Denton, Tarrant) carry higher FHA limits, while Houston, San Antonio, and El Paso sit at the floor. Always confirm the limit for your specific county before you shop.
Texas housing market
Market Snapshot
Texas is huge and varied — from affordable San Antonio and El Paso to pricier Austin and Dallas–Fort Worth. Inventory has loosened, giving FHA buyers more room.
Days on Market
68 days
Statewide average — inventory has grown, so buyers have negotiating room
Longer than 2024Homes Sold
27,548
Statewide, May 2026 — one of the largest, most liquid markets in the country
StableFHA Share (National)
17%
Of U.S. purchase loans are FHA — the flexible-credit path many TX buyers use
National avgLonger days-on-market and growing inventory work in the FHA buyer's favor — sellers are more open to FHA offers and to covering appraiser-flagged repairs. The bigger monthly-cost variable in Texas is property tax: a home that looks affordable on price can push your debt-to-income ratio once the tax escrow is added, so pull the county tax rate early.
Down payment help
Texas First-Time Buyer Programs
These TSAHC and TDHCA programs can be layered on top of an FHA loan to reduce your out-of-pocket costs at closing.
TSAHC Homes for Texas Heroes
Texas State Affordable Housing Corporation
- Benefit
- Down payment assistance of 2% to 5% of the loan amount
- Structure
- Grant or deferred/forgivable second lien, depending on the product reserved. For teachers, firefighters and EMS, police and correctional officers, and veterans. Credit scores as low as 620. Not limited to first-time buyers.
Source: Texas State Affordable Housing Corporation · Verified Sep 8, 2026
TDHCA My First Texas Home
Texas Department of Housing and Community Affairs
- Benefit
- Up to 5% of the mortgage loan
- Structure
- 30-year deferred repayable second lien or a 3-year deferred forgivable second lien, plus a 30-year first mortgage. First-time buyers (no ownership interest in a primary residence in the past three years); waived in targeted areas and for qualified veterans. Typically 620+ score. Homebuyer education required.
Source: Texas Department of Housing and Community Affairs · Verified Sep 8, 2026
TDHCA My Choice Texas Home
Texas Department of Housing and Community Affairs
- Benefit
- Up to 5% of the mortgage loan
- Structure
- Same DPA structures as My First Texas Home (deferred repayable or 3-year forgivable second) with no first-time buyer requirement. County income limits apply. Homebuyer education required.
Source: Texas Department of Housing and Community Affairs · Verified Sep 8, 2026
Stack these programs. Texas assistance is designed to sit on top of an FHA (or conventional) first mortgage from a participating lender. TSAHC Homes for Texas Heroes is especially valuable for teachers, first responders, and veterans — up to 5% toward the down payment. TDHCA My First Texas Home and My Choice Texas Home offer up to 5% as a deferred second. Which program fits depends on your profession, income, and county; TDHCA options generally want a 620+ score.
Real scenarios
Texas FHA Borrower Profiles
Common buyer combinations we see in Texas — and how FHA works for each.
Profile A
Teacher, San Antonio
Buying a $290,000 home. Full-time public-school teacher, credit 655, W-2 income. Qualifies for TSAHC Homes for Texas Heroes — up to 5% toward the down payment as a grant. Combined with the 3.5% FHA down payment, cash-to-close drops meaningfully. Comfortably under the FHA floor.
Homes for Texas Heroes3.5% down~40 day close
Profile B
First-time buyer weighing taxes, Dallas–Fort Worth
Looking at a $360,000 home in a DFW suburb. Credit 690, stable income. The loan qualifies — the swing factor is the property-tax rate, which varies sharply by district and feeds the debt-to-income ratio. We pull the exact county/ISD tax rate before the offer so the payment that clears underwriting is the one planned for.
Property tax drives DTICheck the ISD rateConfirm DFW county limit
Profile C
Self-employed buyer, Houston
2-year self-employed history, Schedule C income averaging $84,000/year after write-downs, credit 668. FHA accepts a 2-year average. Needs 2 years of complete tax returns, a year-to-date P&L, and business bank statements. Down payment: 3.5% (~$11,900 on a $340K home). Harris County uses the FHA floor.
2-yr tax returns needed+7–10 day underwriting40–52 day close
Profile D
Higher-price buyer, Austin
Buying a $520,000 home in the Austin metro. Because Austin-area counties carry a higher FHA limit than the statewide floor, FHA can still be an option here where it couldn't in a floor county. We confirm the exact Travis/Williamson limit and model MIP against a conventional 5%-down scenario side by side.
Austin limit exceeds floorCompare vs. conventional35–45 day close
Run the numbers
Texas FHA Payment Estimator
Estimate your monthly payment including MIP — the piece most calculators leave out. Texas property taxes are separate and can be significant; ask us for a county-specific estimate.
Texas median: $343,779 · FHA floor: $541,287 (Austin/DFW higher)
Rates vary by credit score and lender
Monthly P&I
$2,189
Principal & interest
Monthly MIP
$152
Mortgage insurance premium (MIP)
Total Monthly
Talk to a loan officer$2,341
Before tax & insurance
Estimates only. Does not include property tax (notably high in Texas), homeowner's insurance, or HOA dues. MIP rate assumes LTV > 90% for loans ≥ 30 years. Not a commitment to lend.
Answers to real questions
Texas FHA Loan FAQs
Most Texas counties use the 2026 FHA one-unit floor of $541,287. The high-growth metros are higher: the Austin area (Travis, Williamson) and much of Dallas–Fort Worth (Collin, Dallas, Denton, Tarrant) carry elevated FHA limits, while Houston, San Antonio, and El Paso sit at the floor. Limits are set county by county and updated annually — we'll confirm your county's figure before you shop.
Texas has no state income tax but some of the highest property-tax rates in the country, and rates vary sharply by county and school district. Your property tax is escrowed into your monthly payment, so it feeds directly into your debt-to-income ratio. A home that looks affordable on price alone can push your DTI over the limit once the real tax rate is added. The fix: pull the exact county/ISD rate before you go under contract.
Homes for Texas Heroes provides down payment help — up to 5% of the loan as a grant — for teachers, firefighters and EMS, police and corrections officers, and veterans. It can be paired with an FHA loan from a participating lender. It's one of the most valuable programs in Texas for service professionals, and it isn't limited to first-time buyers.
No. FHA loans have no income maximum. The practical limit is the county loan-size cap. Some assistance programs layered on top of FHA (like TDHCA My First Texas Home) do have income limits, which vary by county and household size. You can use FHA above those limits; you just may not qualify for the assistance.
FHA guidelines technically allow scores down to 500 with a 10% down payment. Most lenders apply overlays with a 580 or 620 floor. At Intra we work with borrowers down to 580 with 3.5% down. Below 580 you'd need 10% down and should expect fewer lender options and a higher rate.
Typically 35–52 days in Texas. FHA adds about a week over conventional because of the government-backed underwriting overlay and a stricter property appraisal. Texas is a title-company closing state, which keeps the back end efficient. Documentation readiness — and confirming the property-tax escrow early — keeps you at the shorter end of that range.
From the field
A Texas Loan Officer's Take on FHA
"In Texas the loan is rarely the hard part — property tax is. I've watched buyers get comfortable with a price, then a high-ISD tax rate pushes their debt-to-income over the line. So we pull the county and school-district rate before we write the offer. Do that, and FHA is a great fit here — especially for teachers and first responders who can add a Homes for Texas Heroes grant."
Keshabi Acharya
Senior Loan Officer, Intra-Mortgage — Licensed in OH, PA, TXKeshabi has closed FHA loans across Texas and specializes in first-time and service-professional buyers — layering TSAHC and TDHCA assistance with FHA, and getting ahead of the property-tax math that decides so many Texas approvals.
What to watch for on Texas FHA files:
- High school-district tax rates that push debt-to-income over the limit
- County FHA limits — Austin and DFW differ from the statewide floor
- Self-employed buyers missing year 2 of tax returns at application
Sources & references
Where these figures come from
- 2026 FHA loan limits by county (Texas floor $541,287; the Austin and Dallas-Fort Worth metros are high-cost)U.S. Dept. of HUD
- 2026 conforming loan limit baseline ($832,750), which sets the FHA floorFederal Housing Finance Agency
- TDHCA My First Texas Home assistance terms and eligibilityTexas Dept. of Housing (TDHCA)
- TSAHC Homes for Texas HeroesTexas State Affordable Housing Corporation
- TDHCA My First Texas HomeTexas Department of Housing and Community Affairs
TSAHC / TDHCA–Participating Lender
Access to Texas's DPA programs
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Verified borrower reviews
NMLS #2620605
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Licensed in OH, PA, TX
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