FHA Loan Guide — Texas

What Credit Score Do I Need for an FHA Loan in Texas?

Q: Can I get an FHA loan in Texas with a 550 credit score?

Most FHA lenders in Texas require a minimum 580 score. Some lenders have overlays that push the minimum to 620 or 640. Eddie Gamez works with lenders who go down to 580 and in some cases lower depending on the full application.

You need a minimum 580 credit score to qualify for an FHA loan in Texas with 3.5% down. Borrowers with scores between 500–579 may still qualify but must put 10% down. FHA loans are the most popular choice for first-time buyers and those rebuilding credit because they have the most flexible credit requirements of any government-backed mortgage.

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FHA Credit Score Requirements in Texas

580+

3.5% down

Standard FHA — most borrowers qualify here

500–579

10% down

Still eligible — higher down payment required

Below 500

Not eligible

Credit improvement needed first

Credit Score Is Just One Factor

FHA lenders in Texas look at the full picture — not just your score.

Debt-to-Income Ratio

FHA allows up to 57% DTI in some cases — much more flexible than conventional loans.

Payment History

Recent late payments matter more than old ones. 12 months of on-time payments helps significantly.

Collections & Judgments

FHA doesn't require you to pay off all collections — medical collections are often excluded entirely.

Bankruptcy & Foreclosure

FHA allows purchase 2 years after Chapter 7 bankruptcy and 3 years after foreclosure.

FHA vs. Conventional: Credit Score Comparison

Feature	FHA	Conventional
Minimum credit score	580 (3.5% down)	620 (3% down)
Down payment	3.5%	3–20%
Mortgage insurance	Required (life of loan if <10% down)	Drops at 20% equity
DTI limit	Up to 57%	43–50%
Best for	Lower credit, first-time buyers	620+ credit, lower long-term cost

FHA Credit Score Questions — Answered

Can I get an FHA loan in Texas with a 550 credit score?

Most FHA lenders in Texas require a minimum 580 score. Some lenders have 'overlays' that push the minimum to 620 or 640. Eddie works with lenders who go down to 580 and in some cases lower — it depends on the full picture of your application.

How fast can I improve my credit score to qualify for FHA?

Many borrowers see 20–50 point improvements in 60–90 days by paying down credit card balances below 30% utilization and disputing errors. Eddie offers free credit coaching to help you get there faster.

Does FHA have income limits in Texas?

No — FHA loans have no income limits. Anyone can apply regardless of how much they earn. The main limits are on the loan amount, which varies by county in Texas.

What is the FHA loan limit in Austin, Texas?

For 2025, the FHA loan limit in Travis County (Austin) is $524,225 for a single-family home. Higher limits apply for multi-unit properties.

Find Out If You Qualify for FHA Today

Eddie Gamez will review your credit, income, and goals to find the best path to homeownership — whether that's FHA now or a plan to get there in 60–90 days.

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First-time buyer resources

Explore the loan options, credit guidance, and planning tools Austin buyers use before making an offer.