How Do I Qualify For A Texas FHA Loan?

To qualify for an FHA loan in Texas, a borrower must meet specific eligibility requirements. They must have, at a minimum:

  • A credit score of 580 and an acceptable credit profile;
  • Have at least a 3.5% down payment;
  • Have a stable income to show the ability to repay the mortgage set forth by HUD guidelines, and
  • Meet the debt-to-income ratio requirement.
Borrowers applying for an FHA-insured loan must have at least a 580 middle FICO score. Those whose mid-FICO scores are below 580 but not lower than 500 may still be eligible for an FHA-insured loan as long as they have at least 10% to put down. Certain restrictions will apply, but it is still possible to qualify with scores under 580.





Benefits of FHA Loan

A down payment of 3.5% is required on all FHA transactions. The best part of all, the down payment may come from a family member as a gift towards the purchase of the house. The donor has to provide the source of the money being used as a “Gift Fund” to the borrower. The 3.5 percent down payment requirement is applicable to home buyers with a middle FICO score of 580 and above. As mentioned above, borrowers with a credit score below 580 and all the way down to 500, may still qualify for an FHA loan but they must come up with a 10% down payment and certain restrictions will apply.

The FHA loan is the most accommodating loan option on the market. To qualify, FHA only requires a 3.5% down payment. Borrowers with a mid-FICO score of 580 and above are required to make a 3.5% down payment. Getting an FHA-insured loan is a better option than acquiring a conventional loan, which requires at least a 620 mid-FICO. Although a credit score of 580 is required, prospective homeowners should aim to raise their credit scores to at least 640 in order to qualify for a lower interest rate.

Contrary to popular belief, credit alone does not guarantee a mortgage loan. Credit, income and the borrower’s assets determine affordability and the total home loan to be extended.

The debt-to-income requirement of an FHA loan allows for the borrower to have a higher back-end ratio as compared to other home loan programs. The standard debt-to-income ratio requirement on FHA loans is set at 36/43%. The front-end ratio is the proposed housing expense divided by the gross monthly income. The back-end ratio is the gross monthly income versus the combination of the proposed housing expense, all revolving and installment accounts, student loans, personal loans, etc.

Some FHA lenders can go as high as 50% DTI, others at 55%; no other loan program in the market subscribes to this rule but FHA. We can go as high as 57% back-end ratio to qualified borrowers, with compensating factors and an AUS approval.

A borrower who has gone through the requirements listed above can qualify for an FHA loan. Credit, income, and assets determine eligibility for an FHA home loan. Applicants will go through the process of verification and must submit all necessary documents to the lender. The Federal Housing Administration (FHA) insures the loan made by banks and other private institutions. The first thing that every prospective borrower needs to do is consult with an FHA-approved lender. An FHA Home Loan Specialist will do an analysis of the borrower’s credibility and ability to pay back. This is a simple pre-qualification process. The borrower can take it one step further by opting to be pre-approved. This process will require documentation of income and assets required to move forward with the loan.

FHA Eligible Properties

An FHA loan can only be used for a primary residence; the property must be owner-occupied and not an investment or rental property. Any 1 – 4 unit properties, including condominiums, manufactured homes, modular homes, and planned urban developments, are eligible for an FHA-insured loan. However, there are specific guidelines for properties with three or four units and manufactured homes, Condominiums, and PUDs.

We can get an automated underwriting approval from either Fannie Mae or Freddie Mac and go over the borrower’s requirements and additional required documentation. This will ensure that the borrower is approved per FHA guidelines. We’ll get you prequalified or preapproved for a specific amount so you can start shopping for your dream home.

Apply For An FHA Loan

You may initiate an FHA loan application online, over the phone, or in person. FHA loans are insured by the Federal Housing Administration, an arm of Housing and Urban Development commonly known as HUD. 

You may apply online using the tools on this site. You may also call 800-854-4142 to apply over the phone. Our FHA Loan Specialists are available to take your call. 

Please call us at 800-854-4142 for more information or additional questions on qualifying for an FHA loan in Texas.

FHA Loans Help Make Home Ownership 

Possible For a Wider Range of People.

FHA Loans in Texas

An FHA Loan Specialist Ready To Help You

Our FHA Loan Specialists are always available to help you and answer any questions.  You may contact a dedicated FHA Loan Specialist through our website or by calling us directly. You may also chat with us to get a quick answer to your questions.

FHA Loans in Texas

We Make The FHA Loan Process Quick & Easy

Lenders often times will steer their clients away from an FHA loan due to their inexperience with the program.  FHA Loans are a great source of funding for our clients.  We share our knowledge and experience with FHA loans, making it easier for borrowers.

FHA Loans in Texas

FHA Approved Lender

The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. We are FHA-approved and designated as a “Full Eagle” FHA mortgage lender offering FHA-insured home loans in Texas.