FHA Loan Calculator for Texas (2022 Data)
Jump to section: FHA loan calculator for Texas | Breakdown of Texas FHA loan amounts | Texas FHA loan requirements | Texas FHA loan FAQ
Our Texas FHA loan calculator will help you estimate monthly mortgage payments on an FHA loan, including jumbo FHA loans (loans that exceed $647,200). For most counties in Texas, you can borrow up to $420,680 for a single-family home on an FHA loan.
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FHA loan calculator for Texas
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Breakdown of Texas FHA loan amounts
A down payment is the cash you pay upfront for your home. For FHA loans in Texas, you need to pay at least 3.5% of the home purchase price to qualify. Your down payment can come from your personal savings, or it can be a gift from a relative, charity, or donor.
💸 For gifts, you need a gift letter. If a portion of your down payment is gifted to you, you’ll need a letter from your donors stating that the money is indeed a gift and not a loan. The FHA just wants to be sure your gift money has no strings attached (i.e., you don’t have to pay it back).
Mortgage insurance premiums (MIP)
Mortgage insurance premiums (MIP) protect lenders from foreclosure, specifically for low down payment mortgages. For FHA loans, you’ll pay two kinds of MIPs:
- Upfront MIP (UFMIP): 1.75% of your loan amount. You pay this only once during closing. You can pay it in cash or roll it into your loan amount.
- Annual MIP: 0.40–1.10% of your loan amount paid each year. The annual MIP is broken into 12 monthly installments, which you’ll pay with your mortgage payment.
💡Does MIP ever go away? For down payments less than 10%, you’ll pay annual MIP for the life of your loan. If your down payment is more than 10%, you’ll stop paying annual MIP after 11 years.
FHA maximum mortgage amount
Loan limits are the maximum you can borrow from an FHA lender. For a single-family home in most Texas counties, the loan limit is $420,680. For Austin, Dallas-Fort Worth, or San Antonio metropolitan areas, the limits are slightly higher:
- Austin: $483,000
- Dallas-Fort Worth: $450,800
- San Antonio: $449,650
Annual real estate taxes
When you close on a home with an FHA loan, your lender will ask for two months of property taxes in advance. You’ll pay this upfront with your closing costs, and your lender will then deposit the money into an escrow account. When it comes time to pay property taxes, your lender will use this money until it runs out. After that, you’ll pay property taxes in 12 monthly installments, which are wrapped up in your mortgage payment.
💰 How much will taxes cost? The amount of tax you'll pay varies from county to county. Texas doesn’t have a state property tax but rather lets each local government set its rates. The average tax rate in Texas sits at 1.80%.
(Use the FHA loan calculator here.)
Annual homeowners insurance
Your FHA lender will ask you to pay for a year’s worth of homeowners insurance premiums at closing. They’ll deposit this money in an escrow and pay your insurance company immediately after you’ve closed on the home. In Texas, you can expect to pay around $1,860 for homeowners insurance.
Texas FHA loan requirements
An FHA loan in Texas is a low-down payment mortgage that has more affordable closing costs and requires a lower credit score than a conventional mortgage. To qualify for an FHA loan in Texas, you need to meet certain criteria.
- Down payment of 3.5%. You need to contribute at least 3.5% of the home price to qualify for an FHA loan in Texas. This money can be a gift, grant, or your own personal savings.
- Credit score of 580 or higher. If your down payment is 10% or higher, lenders may allow you to have a score between 500 and 579.
- The home must be your primary residence. You agree to move in within 60 days after closing, then live in the home for at least a year.
- Debt-to-income ratio of 43% or less. For higher DTIs, your lender may still grant approval with special underwriting.
- 1–2 years of stable employment. The Federal Housing Administration (FHA) wants to see at least two years of stable income. They’ll ask for pay stubs (usually two) with year-to-date earnings, recent W-2s, annual tax returns, and investment statements. They might even require a letter from your employer confirming your employment.
- At least 2 lines of credit. For example, a credit card and a car loan, or two credit card accounts. You need at least two to apply.
- The home you’re buying must meet HUD standards. The property should be safe, sound, and secure. You’ll need an appraisal showing the home meets minimum HUD standards.
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Texas FHA loan FAQ
An FHA loan is a low-down payment mortgage that helps homebuyers with a continuous history of employment buy homes with more lenient terms. Learn how to estimate your FHA loan amount.
For 2022, the FHA loan limit on a single-family home in Texas is $420,680. If you live in Austin, Dallas-Fort Worth, or San Antonio, your loan limits will be slightly higher.
Yes, Texas has numerous first-time homebuyers programs. Three of the most popular first-time home buyers programs in Texas include:
- TDHCA My First Texas Home. Get a low interest rate on a 30-year mortgage plus up to 5% in closing cost assistance. You have to pay the 5% back, either when you sell the home or when you pay off your mortgage.
- The TSAHC Home Sweet Texas Home program offers a low rate 30-year fixed mortgage plus up to 5% back in down payment assistance.
- The TSAHC Homes for Texas Heroes program also offers a low rate 30-year fixed mortgage and up to 5% in down payment assistance. You must be in a public service profession to qualify (such as a teacher, veteran, medical personnel, law enforcement officer, etc).