How To Apply For FHA Loans In Austin, TX
- Apply Online.
- Over the phone at (800) 854-4142.
- Apply in person at any of our office locations.
Austin FHA Loan Limit
$571,550
One-Family
$731,700
Two-Family
$884,450
Three-Family
$1,099,150
Four-Family
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) under the authority of the United States Department of Housing and Urban Development. The administration insures the loan against default, eliminating the risk from lenders in the event of foreclosure. Lenders can offer more favorable terms and lenient qualification requirements without the risk compared to conventional loans.
How Do I Qualify For An FHA Loan In Austin?
Credit
To qualify for an FHA loan, you must have a minimum credit score of 580. However, if your score is between 500 and 579, you may still be eligible with a minimum of 10% down payment, and certain restrictions will apply.
Income
You must have a two-year verifiable work history to qualify for an FHA loan. Recent college graduates are exempt from this requirement if they can provide a copy of their school transcript and diploma to show they recently graduated.
No minimum nor maximum income requirement exists to qualify for an FHA loan. However, there is a debt-to-income (DTI) ratio requirement. FHA loans allow a front-end ratio of 36 – 40% and a back-end ratio of up to 50%. Borrowers with compensating factors may qualify for up to 55% DTI ratio.
Assets
All FHA loans. However, the funds may come as a 3.5% down payment. If your credit score is 580 and above, you qualify for a 3.5% down payment. If your score is below 580, you may still be eligible for an FHA loan with a 10% down payment.
Types of FHA Loans in Austin
- 203(b)
The FHA 203(b), also known as the Basic Home Mortgage Loan, is the cornerstone of all FHA mortgage insurance programs for one- to four-unit residential properties, including individual condominium units and manufactured homes.
- 203(k)
An FHA 203(k) loan is a type of government-insured mortgage that enables the borrower to obtain a single loan to purchase and improve a home. The purpose of an FHA 203(k) loan is to finance the rehabilitation or restoration of the borrower’s primary residence. It may be used to purchase a property or renovate an existing property.
- 203(h)
The Section 203(h) program enables the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major catastrophe who have lost their homes and are rebuilding or purchasing another home.
- HECM
A Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program. It allows you to withdraw a part of your home’s equity. The amount available for withdrawal varies by the borrower. It is determined by (a) the age of the youngest borrower or eligible non-borrowing spouse, (b) the current interest rate, and (c) the lower of the appraised value or the HECM FHA mortgage limit or the sales price.
Apply for a Home Loan in Austin
Buying a home in Austin is an exciting milestone, and choosing the right financing can help make the process smoother and more affordable. Whether you’re a first-time homebuyer, relocating to the area, or searching for a loan program with flexible qualification requirements, an FHA loan can open the door to homeownership. With Austin’s continued growth and strong housing demand, having a knowledgeable mortgage team by your side can help you navigate your options with confidence.
At TexasFHA.org, we’re dedicated to helping Austin homebuyers find financing solutions that fit their needs and goals. Our team will guide you through every stage of the mortgage process, from pre-qualification through closing, while providing clear answers and personalized support along the way. To learn more about your home loan options, call (800) 854-4142 and speak with a mortgage professional today.