FHA Loans in Houston
The government-backed mortgage that lets you buy with as little as 3.5% down and a credit score many conventional loans won't accept. We pair it with Texas and Florida down payment assistance so your savings don't have to be the thing standing between you and a house.
So, what exactly is an FHA loan?
It's a mortgage insured by the Federal Housing Administration. The FHA doesn't lend you the money — a lender like one of our 20+ partners does. The FHA just insures that lender against loss, which is the whole reason the bar for credit and down payment sits lower than a conventional loan.
That insurance isn't free, though. Every FHA loan carries two mortgage insurance premiums: a one-time upfront premium you can fold into the loan, and a smaller annual premium paid monthly. We'll show you both in the calculator below so there are no surprises at closing.
One more thing worth knowing: lenders add their own requirements on top of the FHA's minimums (called overlays). So the number you see published isn't always the number you qualify for — your real eligibility depends on your full file: income, debts, credit history, and the home itself.
FHA at a glance (2026)
Things most people don't know about FHA loans
The fine print that actually changes which loan wins.
The rate can be lower than conventional — but the MIP is the catch
FHA rates are often a touch below conventional, which is why people pick it. The trade-off is the Mortgage Insurance Premium: an upfront 1.75% (financed into the loan) plus a monthly premium. Run the numbers — sometimes the lower rate still wins, sometimes conventional does once you count the MIP.
It's one of the easiest loans to refinance
The FHA Streamline Refinance skips the appraisal in many cases, cuts the paperwork, and doesn't re-verify your income. When rates drop, FHA borrowers can often refi in days, not weeks — a fraction of what a conventional refinance demands.
Your entire 3.5% down can be a gift
FHA allows the full down payment to come from a family member, employer, or approved assistance program. You don't need a dime of your own savings in the bank to qualify — something conventional loans are far stricter about.
You can buy a 2–4 unit property and rent the others
Live in one unit, rent out the rest, and use that rental income to help qualify. Few loans let a first-time buyer become a small landlord on day one — FHA does.
FHA loans are assumable
If you sell the home later, a qualified buyer can take over your FHA loan with its rate. When rates are high, a low-rate assumable FHA loan can be a selling point that conventional loans simply can't match.
A thinner credit history isn't a dealbreaker
FHA looks at the whole picture, not just a three-digit score. Manual underwriting is available for files that an automated system would reject — which is why FHA is often where buyers rebounding from a past hardship get their first yes.
See your real FHA payment
Most calculators hide the MIP. This one puts it front and center — upfront premium financed in, monthly premium on top — so the number you see is the number you'll actually pay.
FHA Payment Calculator
Includes the FHA upfront MIP (financed into the loan) and the monthly MIP — the two premiums most calculators quietly leave out.
Estimate only. Upfront MIP = 1.75% of base loan (financed). Annual MIP ≈ 0.55% for < 5% down, 0.50% for 5%+ down. Not a commitment to lend; actual rate, MIP, and terms depend on your full file.
Who an FHA loan tends to fit
- First-time buyers who are still building credit or savings
- Buyers with a shorter or bumpier credit history
- Anyone pairing the loan with Texas or Florida down payment assistance
- Buyers who want a 2–4 unit and plan to house-hack
Frequently asked questions
The FHA floor is 500, but 580+ is what unlocks the 3.5% down payment. Between 500 and 579 you're generally looking at 10% down. In practice, lenders add their own overlays around 600–620, and a minimum score is only one piece of qualifying. A licensed loan officer can tell you exactly where your file stands.
Educational content only. This page is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Program requirements and terms vary by lender and change over time; figures cited reflect the sources below as of the dates noted, and eligibility always depends on your full financial profile. Liuver Duran, NMLS #2579601. Sociable Mortgage LLC, NMLS #2498240. Equal Housing Opportunity.
Sources
Down payment assistance and grants
We work with SETH, TDHCA, TSAHC, and other Texas down payment assistance programs and grants through our partners — and eligible buyers also have 0% down options with VA and USDA. Tell us a little about your situation and we'll show you which programs you qualify for.