FHA Loans for Austin Homebuyers

For 2026, the FHA loan limit in Travis County is $571,550 for a single-family home, which is above the national baseline thanks to Austin’s higher median home prices. This higher limit means more Austin buyers can take advantage of FHA’s low down payment requirements (as low as 3.5%) and flexible credit guidelines.

Austin buyers may also qualify for down payment assistance through the Texas State Affordable Housing Corporation (TSAHC). Programs like Home Sweet Texas and Homes for Texas Heroes offer grants or forgivable second lien loans that can be paired with an FHA mortgage. These programs are available to first-time and repeat buyers who meet income and purchase price requirements, making them a powerful tool for getting into your first home.

Whether you are looking in Del Valle, Manor, Kyle, or other growing communities around Austin, an FHA loan can be a great path to homeownership. Contact us to learn whether an FHA loan combined with Texas down payment assistance could work for your situation.

FHA Home Loans

Lower down payments, flexible credit guidelines, and a path to homeownership that works for more people. FHA loans are one of the most popular options for Texas buyers.

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs a portion of the loan, lenders can offer more flexible qualification requirements, including lower down payments and more forgiving credit guidelines.

FHA loans are a popular choice for first-time buyers, but they are not limited to first-timers. Anyone who meets the eligibility requirements can take advantage of FHA financing, whether you are purchasing your first home or your fifth.

At Mortgage Austin, we guide you through every step of the FHA process. We explain the guidelines in plain English, help you understand your costs upfront, and make sure you are set up for a smooth closing.

Why Choose an FHA Loan?

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Lower Down Payment

FHA loans allow down payments as low as 3.5%, making homeownership more accessible without draining your savings.

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Flexible Credit Guidelines

FHA guidelines are more forgiving than conventional loans, so a less-than-perfect credit history does not automatically disqualify you.

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Gift Funds Allowed

Your entire down payment can come from a gift from a family member, employer, or approved organization. Flexibility when you need it.

General FHA Eligibility

FHA loans have guidelines set by the Federal Housing Administration, and individual lenders may have additional requirements. Here is what to keep in mind:

✓ Down payment: As low as 3.5% of the purchase price.

✓ Credit score: FHA has minimum score requirements, though higher scores may qualify for better terms.

✓ Debt-to-income ratio: FHA allows higher DTI ratios than many conventional programs.

✓ Property standards: The home must meet FHA appraisal requirements for safety and livability.

✓ Mortgage insurance: FHA loans require both an upfront and annual mortgage insurance premium (MIP).

Every situation is different. We review your full financial picture and walk you through what to expect before you commit to anything.

Frequently Asked Questions

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible by allowing lower credit scores, smaller down payments, and more flexible qualification guidelines than conventional loans.

What credit score do I need for an FHA loan?

FHA loans are available to borrowers with credit scores as low as 580 with a 3.5% down payment. Borrowers with scores between 500 and 579 may still qualify but will need a 10% down payment. FHA loans are one of the most forgiving loan programs when it comes to credit history.

What is the FHA mortgage insurance premium (MIP)?

FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which is typically financed into the loan, and an annual MIP that is paid monthly. For most FHA loans with less than 10% down, MIP remains for the life of the loan.

Can I use an FHA loan to buy a home in Texas?

Yes. FHA loans are available throughout Texas, including Austin, Houston, Dallas, Fort Worth, San Antonio, and all other areas. FHA loan limits vary by county. As a Texas mortgage broker, we can help you determine the FHA loan limit for your specific area and guide you through the process.

Is an FHA loan only for first-time homebuyers?

No. While FHA loans are popular among first-time homebuyers because of their flexible requirements, they are available to any eligible borrower. You can use an FHA loan even if you have owned a home before, as long as the property will be your primary residence.

Ready to Explore FHA Loans?

No pressure, no obligation. Let us walk you through your options and find the right fit for your situation.

NMLS# 2403080 | Ferrando Financial LLC | Equal Housing Opportunity