FHA purchase
FHA purchase loans in Texas
The most-used low-down-payment loan in Texas. Put 3.5% down, use gift funds if you have them, and qualify with credit that conventional lenders turn away.
What it is
An FHA purchase loan is a fixed- or adjustable-rate mortgage insured by the Federal Housing Administration and made by approved lenders. Because the insurance protects the lender, guidelines are more forgiving than conventional financing: lower minimum down payment, lower minimum credit score, higher allowable debt-to-income, and permission to use gift or assistance funds for the entire down payment. In exchange, borrowers pay a 1.75% upfront mortgage insurance premium (usually financed into the loan) plus a monthly premium.
Who it's for
- First-time and repeat buyers with 3.5%–10% saved
- Borrowers with credit scores in the 580–679 range
- Buyers using family gift funds or Texas down payment assistance
- Households with student loans or higher debt-to-income ratios
- Buyers who need seller-paid closing cost help
The 3.5% down rule, in plain English
FHA's headline benefit is a 3.5% minimum down payment with a credit score of 580 or higher. Below 580, the minimum is 10%. Down payment funds can come from savings, a documented gift from family, or an eligible Texas down payment assistance program. FHA also allows a higher debt-to-income ratio and shorter waiting periods after a past credit event than most conventional programs.
Qualification checklist
- 580+ credit score for 3.5% down (500–579 requires 10% down)
- Two years of employment history, or a documented equivalent
- The home must be your primary residence and pass an FHA appraisal
- Loan amount within your county's FHA limit
- No Chapter 7 bankruptcy in the last two years (exceptions exist)
If the down payment is the hard part, you may not have to cover all of it yourself — Texas down payment assistance programs stack on top of this same FHA purchase loan.
This site is not affiliated with or endorsed by HUD, the FHA, or any government agency. Rate and payment examples are estimates for illustration only. Rates are subject to change and this is not a commitment to lend. Actual APR depends on credit, occupancy, loan amount, and property details.