FHA Loans in Houston
Low down payment mortgages backed by the Federal Housing Administration.
Just 3.5% down with 580 credit score.
3.5% Down
Lowest down payment available for qualified buyers
580 Credit
Lower credit requirements than conventional loans
FHA Backed
Government-insured for lender protection
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, making it easier for first-time homebuyers and those with less-than-perfect credit to qualify for a home loan. With down payments as low as 3.5% and flexible credit requirements, FHA loans have helped millions of Americans achieve homeownership.
In Houston's competitive real estate market, FHA loans are particularly popular because they allow buyers to enter the market with minimal upfront cash while still getting competitive interest rates. Whether you're buying your first home in Katy, Sugar Land, The Woodlands, or anywhere in the Greater Houston area, an FHA loan could be your path to homeownership.
Is an FHA Loan Right for You?
You're a Great Fit If...
- You're a first-time homebuyer.
- Your credit score is between 580 and 680.
- You have a smaller down payment (as low as 3.5%).
- You plan to live in the home as your primary residence.
You Might Reconsider If...
- You have a high credit score (720+) and a large down payment.
- You are looking for an investment property or second home.
- You want to avoid paying monthly mortgage insurance (MIP).
Houston Success Story
“A young couple in Katy, both teachers, thought they were years away from owning a home. With a 640 credit score and a 3.5% down payment saved up, we helped them secure an FHA loan for their first home, beating multiple offers.”
FHA Loan Requirements
Minimum Credit Score
580 for 3.5% down | 500-579 for 10% down
Down Payment
As low as 3.5% of purchase price
Debt-to-Income Ratio
Up to 50% DTI with compensating factors
Mortgage Insurance
Required (upfront MIP + annual premium)
Property Requirements
Must be primary residence, FHA-approved
Gift Funds
Allowed for down payment and closing costs
Benefits of FHA Loans in Houston
Frequently Asked Questions
What credit score do I need for an FHA loan in Houston?
You need a minimum credit score of 580 to qualify for the 3.5% down payment option. With a score between 500-579, you can still qualify but will need a 10% down payment. We help Houston homebuyers improve their credit to qualify.
How much is FHA mortgage insurance (MIP)?
FHA requires an upfront mortgage insurance premium of 1.75% of the loan amount (can be rolled into the loan) plus annual premiums ranging from 0.45% to 1.05% depending on loan amount, loan-to-value ratio, and loan term. This insurance protects the lender and allows for lower down payments.
Can I use an FHA loan to buy a second home or investment property?
FHA loans are primarily for primary residences. You generally cannot use an FHA loan for a second home or investment property. However, there are limited exceptions, such as job relocation or expanding family size. We can discuss your specific situation.
What are FHA loan limits in Houston for 2024?
For 2024, the FHA loan limit in Harris County (Houston) is $498,257 for a single-family home. Higher limits apply for 2-4 unit properties. These limits are set by the Federal Housing Administration and adjusted annually based on median home prices.
Can I refinance with an FHA loan?
Yes! FHA offers streamline refinance options that require minimal documentation and no appraisal in many cases. You can also do a cash-out refinance with FHA to access your home's equity. We can help you explore the best refinance option for your situation.
Ready to Start Your FHA Loan Application?
Our Houston mortgage experts will guide you through every step of the FHA loan process. Get pre-approved in 60 seconds.
Quick Facts: 3.5% down with 580+ credit • Competitive interest rates • Fast Houston closings • Expert local guidance • Licensed in Texas • NMLS #2701989