FHA Loans · Houston & Greater Texas

Your First Home Is
Closer Than You Think.

FHA loans are the path to homeownership for millions of buyers who don't need perfect credit or a large down payment. If you're buying in Houston, Katy, or the surrounding suburbs, Tyler will tell you exactly where you stand.

FHA Loan Basics

3.5%
Minimum Down Payment (580+ credit)
580
Minimum Credit Score (standard)
57%
Max DTI (with strong compensating factors)
1.75%
Upfront MIP (added to loan balance)

Designed for Real Buyers, Not Perfect Files

FHA loans are backed by the Federal Housing Administration, which means lenders can offer more flexible qualifying criteria than conventional. That flexibility is the reason FHA has helped more Houston first-time buyers get into homes than any other program.

  • 3.5% down payment with 580+ credit score
  • 10% down available for credit scores 500–579
  • Gift funds allowed for down payment and closing costs
  • Higher DTI tolerance — ideal for buyers carrying student loans
  • Recent bankruptcy or foreclosure may still qualify after seasoning
  • Non-occupying co-borrowers allowed (parent co-signing for child)
  • Available for primary residences only

FHA Loan Limits — Harris County & Fort Bend County

FHA sets annual loan limits by county. The limits below are for reference — confirm current limits with Tyler as they change annually.

1-Unit (Single Family)Check current limits
2-Unit (Duplex)Check current limits
3-UnitCheck current limits
4-UnitCheck current limits
Upfront MIP1.75% of base loan
Annual MIP (typical)0.55% — 0.85% /yr
MIP DurationLife of loan (<10% down) or 11 yrs

Limits updated annually by HUD. Contact Tyler for current figures.

Why FHA Works for Houston Buyers

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Low Down Payment

3.5% down makes homeownership accessible years earlier for many buyers. On a $300K home, that's $10,500 down instead of $60K for conventional at 20%.

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Gift Funds Allowed

Family members can gift the entire down payment and closing costs. Conventional has stricter rules about gift fund sourcing.

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Flexible Credit

FHA works with credit scores that conventional programs won't touch. If you've had bumps in the road, FHA may still be an option.

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Broad Property Eligibility

Single-family homes, 2–4 unit properties (owner-occupied), condos (FHA-approved), and manufactured homes can all qualify under FHA guidelines.

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Co-Borrower Flexibility

A non-occupying co-borrower (like a parent) can be added to help a buyer qualify — a major advantage for young or first-time buyers.

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Assumable Loan

FHA loans are assumable — meaning a future buyer can take over your rate and terms. This becomes a valuable feature when rates are high.

FHA Loan FAQs

Yes — FHA loans work in most Houston-area master-planned communities including Cinco Ranch, Bridgeland, Harvest Green, Cross Creek Ranch, and others. The property must meet FHA minimum property requirements (MPRs), which most newer homes in these areas easily satisfy. Some HOA rules and condo associations may require additional review.
MUD (Municipal Utility District) taxes are property taxes that vary widely across Houston suburbs — and they directly affect your monthly PITI (principal, interest, taxes, insurance) payment. Since FHA qualification is based on total PITI relative to your income, a high MUD tax rate in areas like Katy or Cypress can reduce the loan amount you qualify for. Tyler will always run your numbers with the actual MUD rate for the specific property — not a generic estimate.
For most FHA loans with less than 10% down, the annual MIP lasts for the life of the loan. If you put 10% or more down, MIP cancels after 11 years. Unlike conventional PMI, you cannot request FHA MIP removal when you reach 20% equity — the only way to eliminate it is to refinance into a conventional loan. This is something Tyler will factor into your long-term cost comparison.
Yes — FHA allows you to purchase a 2–4 unit property as long as you live in one of the units as your primary residence. This is a popular strategy for buyers who want to offset their housing costs with rental income. FHA loan limits for multi-unit properties are higher than for single-family homes.

Ready to Find Out If You Qualify?

Tyler will review your credit, income, and savings to tell you exactly what you qualify for — and whether FHA, conventional, or another program is the right fit for your situation.