First-time buyers
FHA loans for Texas first-time homebuyers
If the down payment is the wall between you and a first home, FHA is usually the shortest way over it — 3.5% down, gift funds allowed, and credit standards built for real life.
What it is
FHA isn't limited to first-time buyers, but it's the program most first-time buyers end up using. The reason is stacking: a 3.5% minimum down payment, permission for that money to come entirely from a family gift or an approved assistance program, seller-paid closing cost credits up to 6%, and credit guidelines that accommodate thin files, medical collections, and past hardship. Texas also has statewide and city-level assistance programs that pair with FHA financing, and we'll tell you which ones your scenario can actually use.
Who it's for
- Renters with modest savings but stable income
- Buyers relying on a family gift for the down payment
- Applicants with short or repaired credit histories
- Households applying for Texas down payment assistance
- Buyers who want a predictable fixed payment instead of rising rent
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+ score for 3.5% down; below that, plan on 10%
- Two months of bank statements and 30 days of pay stubs to start
- Gift funds need a signed gift letter and a paper trail
- Budget for taxes and insurance — in Texas these are a large slice of the payment
- Get pre-approved before touring; Texas sellers expect it
Many first-time buyers here pair FHA financing with Texas down payment assistance from TDHCA or TSAHC, which can cover the 3.5% down payment through a grant or a deferred second lien.
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.