FHA Loans · State of Texas
FHA loans open the door for Texas buyers with flexible credit and a low down payment. Here's exactly how they work, what you need to qualify, and the 2026 loan limits across the Hill Country.
The basics
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the loan against default, lenders can offer easier credit terms than a conventional mortgage — which is why FHA is one of the most popular paths to homeownership for Texas buyers.
That government backing translates into three real advantages: a down payment as low as 3.5%, credit-score flexibility that opens the door for buyers still building their history, and debt-to-income guidelines that are more forgiving than most conventional programs.
The trade-off is mortgage insurance. Every FHA loan carries an upfront premium and an annual premium, which protect the lender and keep the program running. For many first-time buyers, that's a worthwhile exchange for getting into a home years sooner.
Best suited for
✓ First-time buyers in Austin & the Hill Country
✓ Buyers with a credit score of 580+
✓ Limited savings for a down payment
✓ Pairing with Texas down payment assistance
✓ Buyers who don't fit conventional guidelines
Requirements
Four numbers decide most FHA approvals. Here's where you need to land — and where we can help if you're close.
2026 · By county
FHA sets a maximum loan amount for every U.S. county each year, based on local home prices. The 2026 Texas floor is $541,287, and the five Austin-metro counties sit above it at $571,550. These are HUD's published 2026 one-unit limits.
| County | Primary metro | 2026 one-unit limit |
|---|---|---|
| Travis | Austin | $571,550 |
| Williamson | Round Rock / Georgetown | $571,550 |
| Hays | San Marcos / Dripping Springs | $571,550 |
| Comal | New Braunfels | $557,750 |
| Gillespie | Fredericksburg | $541,287 |
2026 one-unit limits, verified against HUD's published figures. Limits reset every year — always confirm the current figure for your county before making an offer.
This page is reviewed by Jonathan Sarver, a licensed Texas loan officer. Have a question about your specific situation in Austin or the Hill Country? Reach out directly — a real person, licensed in Texas, will answer.
Answers
You can qualify with a credit score of 580 and a 3.5% down payment. Scores between 500 and 579 may still qualify with 10% down. Individual lenders can set their own minimums above these floors.
As little as 3.5% of the purchase price for borrowers with a 580+ credit score. The down payment can come from your own savings or an eligible gift from a family member.
Yes. FHA loans include an upfront mortgage insurance premium of 1.75% of the loan amount, which can be rolled into the loan, plus an annual premium paid monthly. The annual rate ranges from 0.15% to 0.75% depending on your term and loan-to-value; most 30-year borrowers putting 3.5% down pay 0.55%. With less than 10% down, annual MIP generally lasts the life of the loan.
Yes. FHA is one of the most popular first-time-buyer programs in Texas thanks to the low down payment and flexible credit rules, and it can often be paired with Texas down payment assistance through programs like TDHCA and TSAHC.
For 2026, the five Austin-metro counties — Travis, Williamson, Hays, Bastrop, and Caldwell — share a one-unit FHA limit of $571,550, above the $541,287 Texas floor. Limits are adjusted annually, so confirm the current figure before you make an offer.
Ready when you are
Get a personalized FHA pre-approval from a licensed Texas loan officer — no obligation, no impact on your plans.
Start my pre-approvalThis is not a commitment to lend. All loans subject to credit approval, income and asset verification, and property appraisal. Rates and terms vary and are not guaranteed.