Texas FHA loan limits for 2026 range from a statewide floor of $541,287 (applicable to 229 of Texas’s 254 counties) to a Permian Basin ceiling of $813,050 in Glasscock County, with four distinct high-cost MSA tiers covering Austin-Round Rock ($571,550), Dallas-Fort Worth ($563,500), San Antonio-New Braunfels ($557,750), and rural counties at the floor. Notably, the entirety of the Houston Metro (Texas’s second-largest metro by population) sits at the FHA floor rather than qualifying for elevated limits, a critical distinction for Houston-area buyers. Combined with current Texas FHA 30-year fixed rates at 6.15-6.65% (August 2026), 3.5% down payment at 580+ FICO, and gift funds allowed for entire down payment, FHA financing remains the most accessible entry point for Texas first-time home buyers. This guide covers the complete Texas FHA county-level framework, current rates, requirements, and buyer demographics for 2026.
Written by John Tappan · NMLS #394171 Updated: August 2026
Texas FHA Loan Limits 2026 — The Four-Tier Framework
Texas FHA loan limits use a 4-tier structure in 2026 based on FHA Mortgagee Letter 2025-24 and HUD’s county-level median home price analysis:
Tier 1 — Glasscock County (Highest in Texas): $813,050 (1-unit)
- Permian Basin oil-and-gas county adjacent to Midland
- Population ~1,200
- Small housing stock + energy-driven home values push median significantly higher
- Multi-unit: $1,040,850 (2u) / $1,258,150 (3u) / $1,563,600 (4u)
Tier 2 — Austin-Round Rock-San Marcos MSA: $571,550 (1-unit)
- 5 counties: Travis, Williamson, Hays, Bastrop, Caldwell
- Covers Austin, Pflugerville, Lakeway, Round Rock, Cedar Park, Leander, Georgetown, San Marcos, Kyle
- Multi-unit: $731,700 (2u) / $884,450 (3u) / $1,099,150 (4u)
Tier 3 — Dallas-Fort Worth-Arlington MSA: $563,500 (1-unit)
- 11 counties: Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant, Wise
- Notable exception: Hood and Somervell counties (part of DFW MSA) remain at floor
- Multi-unit: $721,400 (2u) / $872,000 (3u) / $1,083,650 (4u)
Tier 4 — San Antonio-New Braunfels MSA: $557,750 (1-unit)
- 8 counties: Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Medina, Wilson
- Only $16,463 above the state floor
- Multi-unit: $714,000 (2u) / $863,100 (3u) / $1,072,600 (4u)
Statewide Floor — 229 of 254 Texas Counties: $541,287 (1-unit)
- Houston-The Woodlands-Sugar Land MSA (entire metro at floor)
- El Paso, Corpus Christi, Amarillo, Lubbock, Waco, Beaumont, Wichita Falls, Abilene
- Rio Grande Valley (Brownsville-Harlingen, McAllen, Laredo)
- Texas Panhandle
- East Texas (Tyler, Longview, Marshall, Nacogdoches)
- Hill Country outside Austin MSA
- Multi-unit: $693,050 (2u) / $837,700 (3u) / $1,041,125 (4u)
For comprehensive FHA program details across all states, see FHA home loan programs covering the complete FHA loan framework.
Texas FHA Loan Limits by County 2026
Mobile-Optimized Table:
| MSA / Region | County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|---|
| Glasscock (Permian) | Glasscock | $813,050 | $1,040,850 | $1,258,150 | $1,563,600 |
| Austin-Round Rock MSA | Travis | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Austin-Round Rock MSA | Williamson | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Austin-Round Rock MSA | Hays | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Austin-Round Rock MSA | Bastrop | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Austin-Round Rock MSA | Caldwell | $571,550 | $731,700 | $884,450 | $1,099,150 |
| Dallas-Fort Worth MSA | Collin | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Dallas | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Denton | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Ellis | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Hunt | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Johnson | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Kaufman | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Parker | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Rockwall | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Tarrant | $563,500 | $721,400 | $872,000 | $1,083,650 |
| Dallas-Fort Worth MSA | Wise | $563,500 | $721,400 | $872,000 | $1,083,650 |
| San Antonio MSA | Bexar | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Atascosa | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Bandera | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Comal | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Guadalupe | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Kendall | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Medina | $557,750 | $714,000 | $863,100 | $1,072,600 |
| San Antonio MSA | Wilson | $557,750 | $714,000 | $863,100 | $1,072,600 |
| Houston + All Other 229 Counties | Statewide Floor | $541,287 | $693,050 | $837,700 | $1,041,125 |
Note: Includes Harris, Fort Bend, Montgomery, Brazoria, Galveston, Waller, Chambers, Liberty (all Houston Metro); El Paso; Nueces (Corpus Christi); Potter/Randall (Amarillo); Lubbock; McLennan (Waco); Jefferson (Beaumont); Wichita (Wichita Falls); Taylor (Abilene); Bell (Killeen); Brazos (College Station); Cameron/Hidalgo (Rio Grande Valley); Smith (Tyler); and all rural Texas counties. Verify your specific county at HUD’s FHA lookup tool.
Texas FHA Mortgage Rates August 2026
Current Texas FHA rates by program (August 2026):
| FHA Program | Rate Range | Notes |
|---|---|---|
| FHA 30-Year Fixed | 6.15-6.65% | Slightly below conventional for well-qualified |
| FHA 15-Year Fixed | 5.55-6.05% | Payoff acceleration |
| FHA Streamline Refinance | 6.10-6.60% | No appraisal typically required |
| FHA Cash-Out Refinance | 6.35-6.85% | 80% max LTV per HUD ML 2019-11 |
| FHA 5/1 ARM | 5.85-6.35% | Initial rate period |
| FHA 203(k) Rehab Loan | 6.35-6.85% | Renovation + purchase combined |
For current rate comparison across FHA and VA programs, see current VA and FHA mortgage rates covering complete rate framework.
Federal Reserve context: 3.50-3.75% target (5th consecutive hold July 29, 2026).
Texas FHA Requirements 2026
Standard FHA qualification requirements:
- Credit score minimum: 580 (for 3.5% down) or 500-579 (for 10% down)
- Down payment: 3.5% at 580+ FICO / 10% at 500-579 FICO
- DTI maximum: 43% typical (compensating factors can extend)
- Employment: 2-year stable employment history preferred
- Gift funds: Entire down payment can come from relative gift
- Mortgage insurance (MIP): Upfront 1.75% + annual 0.55-1.05%
- MIP duration: Life of loan (unless 10%+ down)
- Occupancy: Primary residence only
Common refinance strategy: FHA borrowers often refinance into conventional loans once they reach 20% equity to eliminate lifetime MIP.
For borrowers pursuing FHA financing, next step is obtaining an FHA pre-approval letter which strengthens purchase offers in competitive Texas markets.
Texas Home Buyer Demographics & FHA Popularity
Texas borrower profile 2026:
- Texas median home price 2026: ~$300,000-$350,000 (below FHA floor $541,287 in most counties)
- Texas first-time buyer age: 34-36 (younger than national 38 due to affordability)
- Texas FHA loan popularity: Very high — accessible entry point given median prices below FHA floor
- Texas veteran population: Substantial (Fort Cavazos formerly Fort Hood, Fort Bliss, JBSA)
- Texas Metro medians: Austin $482K, DFW $490K, San Antonio $485K, Houston $382K
Texas FHA loans remain highly popular because median home prices ($300K-$350K statewide) are well below FHA loan limits ($541,287+) — creating substantial pricing headroom for Texas buyers, particularly first-time homebuyers utilizing the 3.5% down payment structure.
Texas FHA Cash-Out Refinance 2026
FHA cash-out refinance in Texas remains available at 80% maximum LTV (per HUD Mortgagee Letter 2019-11, which reduced from the prior 85% maximum). For homeowners seeking to access equity while maintaining FHA financing, see FHA cash-out refinance plan covering complete FHA cash-out framework.
Texas FHA cash-out 2026:
- Maximum LTV: 80% (per HUD ML 2019-11)
- Rate premium: 0.25-0.50% above rate/term FHA
- Current cash-out rates: 6.35-6.85%
- 12-month seasoning typically required
- Documentation: Full-doc verification standard
Common Texas FHA Mistakes
- Assuming Houston qualifies for high-cost limits — Houston is at FHA floor $541,287, NOT elevated tier
- Not verifying county-level tier — DFW MSA counties Hood/Somervell are at floor despite MSA designation
- Missing 3.5% down payment threshold — 580 FICO opens 3.5% down (vs 10% for 500-579)
- Ignoring FHA cash-out 80% LTV limit — Not 85% (reduced per HUD ML 2019-11)
- Overlooking MIP lifetime duration — Requires refinance to conventional at 20% equity to remove
- Not maximizing gift fund flexibility — Entire down payment can come from gift
- Missing FHA 203(k) rehab option — Combined renovation + purchase FHA financing available
Texas FHA Limits Frequently Asked Questions
What is the maximum FHA loan amount in Texas for 2026?
The 2026 Texas FHA loan limit maximum is $813,050 in Glasscock County (Permian Basin), followed by $571,550 in the 5 Austin-Round Rock MSA counties (Travis, Williamson, Hays, Bastrop, Caldwell), $563,500 in the 11 Dallas-Fort Worth MSA counties, and $557,750 in the 8 San Antonio-New Braunfels MSA counties. The statewide floor of $541,287 applies to 229 of Texas’s 254 counties, including the entire Houston Metro.
What are current Texas FHA mortgage rates in August 2026?
Texas FHA mortgage rates in August 2026: FHA 30-year fixed 6.15-6.65%, FHA 15-year fixed 5.55-6.05%, FHA streamline refinance 6.10-6.60%, FHA cash-out refinance 6.35-6.85%, FHA 5/1 ARM 5.85-6.35%, and FHA 203(k) rehab loans 6.35-6.85%. Rates align with national FHA averages given Texas’s baseline classification for conforming loans.
What credit score do I need for a Texas FHA loan in 2026?
The 2026 Texas FHA credit score minimums are 580 for the 3.5% down payment option or 500-579 for the 10% down payment option. Many lenders set practical overlays at 580-620+ FICO for the best pricing. Gift funds can cover the entire 3.5% down payment from a qualifying relative. Annual mortgage insurance (MIP) lasts the life of the loan unless 10%+ is put down at closing.
Summary on Texas FHA Loan Limits
Texas FHA loan limits for 2026 span 4 distinct tiers from the statewide floor of $541,287 (229 of 254 counties including all of Houston Metro) to the Permian Basin ceiling of $813,050 in Glasscock County — with Austin-Round Rock MSA at $571,550, Dallas-Fort Worth MSA at $563,500, and San Antonio-New Braunfels MSA at $557,750. Current Texas FHA rates range 6.15-6.85% across programs, with 3.5% down payment available at 580+ FICO and 10% down at 500-579. FHA remains the most accessible entry point for Texas first-time buyers, particularly given median home prices ($300K-$350K statewide) well below FHA loan limits in every tier.
Legal Disclaimers
This article provides general educational information about Texas FHA loan limits and requirements — it is NOT legal advice, financial advice, or a specific loan approval commitment. Actual rates, qualification requirements, and county-level loan limits should be verified through HUD’s official FHA loan limit lookup tool at entp.hud.gov/idapp/html/hicostlook.cfm. BD Nationwide is not a lender — we connect Texas borrowers with licensed FHA-approved mortgage professionals.
References
- U.S. Department of Housing and Urban Development. (2025). 2026 FHA mortgage limits (Mortgagee Letter 2025-24).
- U.S. Department of Housing and Urban Development. (2019). Mortgagee Letter 2019-11 (FHA Cash-Out LTV).
- Reviewed by: John Tappan, NMLS
#394171– Lender Expert (27+ years) | Fact-Checked ✓