Lower down payment
3.5% down with FICO 580+. With FICO 500–579, FHA still allows 10% down where most lenders won’t lend at all.
FHA loans in Texas.
Buy your first home with as little as 3.5% down — and credit scores starting at 580. Insured by HUD, structured by us.
- 3.5% down with 580+ FICO
- DTI flexibility up to ~56% with compensating factors
- Pre-underwritten approvals available for serious buyers
A government-insured mortgage built for accessibility.
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of HUD. Because the federal government backs the loan against default, lenders can offer it with lower down payments and more flexible credit requirements than a conventional mortgage. FHA was created to make homeownership accessible to first-time buyers and households with imperfect credit — and that is still exactly who it serves best today.
How an FHA loan goes from inquiry to keys.
- 01
Soft-pull pre-qualification
We pull a soft credit report — no FICO ding — and run a quick income and assets check. You leave knowing your realistic price range and whether FHA is the right fit.
- 02
Full pre-approval
We collect pay stubs, W-2s, bank statements, and (if applicable) gift letters. A loan officer structures the file across program options before issuing the letter.
- 03
House hunting
You shop with a pre-approval that listing agents trust. We coordinate with your real estate agent on offer terms, financing contingencies, and timeline.
- 04
Contract and appraisal
Once your offer is accepted, we order an FHA appraisal — which has minimum property standards. We prep the file for underwriting in parallel.
- 05
Underwriting and conditions
The file goes to FHA-approved underwriting. Most files clear conditions in under two weeks; we hand you a single conditions list, not a moving target.
- 06
Clear-to-close and funding
We send the closing disclosure at least three business days before close per TRID. You sign at title, funds wire, and you get keys.
Built for first-time and credit-rebuilding buyers.
FHA is the workhorse program for Texas families buying their first home, recovering from a credit event, or stretching a modest down payment. The program is forgiving by design — but the file still has to be structured correctly. That is where we come in: pre-underwritten approvals, MI strategy from day one, and a loan officer who knows the FHA handbook cold.
FHA is the right tool when:
- You are a first-time home buyer with a modest down payment
- Your FICO is between 580 and 700 and you want a forgiving credit review
- Your DTI is on the higher side (mid-40s to mid-50s) with strong compensating factors
- You are receiving documented gift funds toward your down payment
- You are buying a primary residence — single-family, townhouse, or HUD-approved condo
Why FHA still wins for first-time Texas buyers.
Flexible credit review
Manual underwriting for borderline files. Recent late payments and credit events get reviewed in context, not just by score.
Assumable loans
In a falling-rate environment, FHA loans are assumable by qualified buyers — a real exit-strategy benefit when you sell.
DTI flexibility
FHA allows debt-to-income ratios up to ~56% with compensating factors — meaningfully higher than conventional caps.
Gift fund eligible
100% of your down payment can come from gift funds from family members. We handle the gift letter and source documentation.
Streamlined refinance
Once you have an FHA loan, the FHA Streamline refinance lets you lower your rate later with reduced documentation and no new appraisal.
3.5%
Minimum down payment
FHA loan questions, answered.
What is FHA mortgage insurance (MIP)?
FHA loans require Mortgage Insurance Premium (MIP) in two parts: an upfront premium of 1.75% of the loan amount (typically rolled into the loan), and an annual premium charged monthly that ranges roughly 0.15%–0.75% depending on loan amount, LTV, and term. On most FHA loans with less than 10% down, MIP runs for the life of the loan — that is the trade-off for the lower down payment and credit flexibility.
Can I put more than 3.5% down on an FHA loan?
Yes. 3.5% is the minimum, not the maximum. Putting more down lowers your payment, your loan-to-value ratio, and (if you put 10% or more down) your annual MIP duration drops to 11 years rather than the life of the loan.
FHA vs Conventional — which is better?
FHA is usually better below ~680 FICO or with DTI above ~45%. Conventional is usually better above ~720 FICO with strong income, because PMI is removable at 80% LTV and conventional rates can be lower for borrowers with strong credit. We model both side by side before recommending one — that is the entire point of using a broker.
Do I really need a 580 credit score for FHA?
FHA itself allows scores as low as 500 (with 10% down), but most FHA-approved lenders set their own overlay at 580 or 620. We have lender relationships down to 580 with 3.5% down and can quote 500–579 scenarios on a case-by-case basis.
Can I use gift funds for the down payment?
Yes — 100% of your down payment can be a gift from a family member, employer, or approved organization. We provide the gift letter template, document the source of funds, and handle the wire to title. Gift funds are one of the biggest reasons FHA works for first-time buyers.
How long does an FHA loan take to close?
Typical FHA close is 30–35 days from a fully ratified contract. We have closed FHA in 21 days when title and appraisal cooperate. The appraisal is the most common bottleneck — FHA appraisals have minimum property standards beyond a standard valuation, so we coordinate with your agent on what to expect.
Ready to see if you qualify for FHA?
FHA loan requirements at a glance.
- FICO 580+ for 3.5% down (FICO 500–579 requires 10% down)
- 3.5% minimum down payment from your funds or approved gift
- DTI typically up to 43% (or up to ~56% with compensating factors)
- Primary residence only — not investment or vacation homes
- Property must meet FHA minimum property standards (appraisal verifies)
- Mortgage insurance (UFMIP + annual MIP) required on every FHA loan
- Two-year work history (or schooling counts toward it for new graduates)
FHA vs Conventional vs VA at a glance.
| FHA | Conventional | VA | |
|---|---|---|---|
| Minimum down | 3.5% (580+ FICO) | 3% (first-time buyers) | 0% |
| Minimum FICO | 580 (or 500 with 10% down) | 620 | 580–620 (lender overlay) |
| Mortgage insurance | MIP — usually for life of loan | PMI — removable at 80% LTV | No PMI; one-time funding fee |
| Best for | First-time and credit-rebuilding buyers | Strong-credit buyers with standard income | Veterans, active-duty, and qualifying spouses |
Ready to move on a FHA Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
Conventional Loans
For 620+ FICO buyers — lower long-term cost when you have credit and stable income.
Learn moreVA Loans
Zero down, no PMI for veterans, active-duty service members, and qualifying spouses.
Learn moreUSDA Loans
Zero down for buyers in eligible rural Texas areas. Income limits apply.
Learn more