FHA Loans in Dallas–Fort Worth, TX: 2026 Limits for Buyers in Both Metros

One Metroplex, Two Very Different Buying Experiences

Dallas and Fort Worth get lumped together as “DFW,” but as loan officers we treat them as two markets. Fort Worth and its western suburbs still have entry-level inventory under $350,000. Dallas proper and the northern Collin County suburbs — Frisco, McKinney, Plano — run meaningfully higher. An FHA loan works in both, but the strategy shifts depending on which side of the metroplex you’re shopping.

The good news for first-time buyers is that the 2026 FHA loan limit here is one of the highest in Texas, which keeps FHA viable even as prices climb north of the metroplex.

What Is the 2026 FHA Loan Limit in Dallas–Fort Worth?

For 2026, the FHA one-unit loan limit across the Dallas–Fort Worth–Arlington metro area is $563,500. That single number covers the core counties buyers ask us about — Dallas, Tarrant, Collin, and Denton — plus the surrounding metro counties. It sits above the national floor of $541,287 because DFW’s home prices earned it a higher cap.

Practically, $563,500 is enough to shop the large majority of listings in the metroplex on an FHA loan. Where you feel the ceiling is in Frisco, Southlake, or parts of Plano, where a chunk of inventory now lists above it. You can verify the exact figure for your target county anytime through the HUD loan-limit lookup.

The 3.5% Down Math on a Typical DFW Home

DFW’s median sits higher than San Antonio’s, so let’s run a $375,000 home, which is a realistic entry price in Fort Worth’s growing areas or eastern Dallas County.

Purchase price: $375,000
FHA minimum down payment (3.5%): $13,125
Base loan amount: $361,875
Upfront mortgage insurance (1.75%, financed): about $6,333
Total financed loan: roughly $368,208

The 3.5% down option requires a 580 credit score or better. Between 500 and 579, you’re looking at 10% down — $37,500 on this house — which is a real barrier for most first-timers. That gap is why we spend time on credit before anyone shops, and why our guide on getting to a 580 and using an FHA loan exists.

One more DFW-specific reality: property taxes here are high, often 2.1% to 2.5% of value depending on the school district. On a $375,000 home that’s roughly $650 to $780 a month in taxes alone, escrowed into your payment. We build that into every DFW pre-qualification because it changes how much house you actually qualify for.

Dallas County vs. Tarrant County: Where the Money Goes Further

Here’s the honest split we walk buyers through.

Tarrant County (Fort Worth, Arlington, White Settlement, Saginaw) still has the metroplex’s best entry-level value. Fort Worth’s far north and south sides regularly produce solid FHA-friendly homes in the $290,000s to $350,000s. Arlington splits the difference between the two downtowns and stays reasonable.

Dallas County (Mesquite, Garland, Grand Prairie, Duncanville) has affordable pockets, but the older housing stock means the FHA appraisal is doing more work — expect the appraiser to flag peeling paint on pre-1978 homes, missing handrails, or an aging roof.

Collin and Denton Counties (Frisco, McKinney, Plano, Denton) are where the price pressure lives. First-time FHA buyers here usually look at townhomes, condos in FHA-approved projects, or newer construction in Princeton, Celina, and Aubrey where builders still hit accessible price points and often throw in closing-cost credits.

How Do You Cover Closing Costs in a Higher-Priced Market?

Because DFW prices are higher, so are the dollar closing costs — typically 2% to 4% of the price, which on a $375,000 home means roughly $7,500 to $15,000 on top of your down payment. Two tools bring that down.

First, FHA permits seller concessions up to 6% of the price. On new construction especially, builders in the outer suburbs use concessions aggressively to move inventory; we’ve seen builder credits cover nearly all of a buyer’s closing costs. Second, gift funds. FHA allows your entire 3.5% down payment to come from a family gift, documented with a gift letter and a clear transfer trail. Combine a family gift for the down payment with a seller credit for closing costs and a cash-light buyer can genuinely get into a DFW home.

Before you tour anything, plug your target price into the FHA payment calculator so the monthly number — including those Texas property taxes — doesn’t surprise you.

Is FHA the Right Call in DFW, or Should You Look Conventional?

We don’t push FHA on everyone. If your credit is above 680 and you can reach 5% down, a conventional loan often costs less over time because its mortgage insurance is cancellable and can be cheaper. FHA wins when your score is in the 580–660 range, when your debt-to-income is tight, or when you’re leaning on gift funds — all common for first-time DFW buyers. We lay out the full trade-off in our FHA vs. conventional breakdown, and we’ll run both scenarios on your actual numbers.

For the local program and price detail, the Dallas FHA page and Fort Worth FHA page stay current with each county’s data.

New Construction: A First-Time Buyer's Edge in DFW

One of the best-kept secrets for cash-tight DFW buyers is new construction on the metroplex's edges. Builders in Princeton, Celina, Anna, Melissa, Forney, and Waxahachie are producing FHA-friendly homes at accessible price points, and because inventory keeps coming, they compete hard for buyers. That competition shows up as incentives — closing-cost credits, appliance packages, and sometimes contributions that stack right up against FHA's 6% seller-concession limit.

New construction has a second, quieter advantage for FHA buyers: a brand-new home sails through the FHA appraisal. There's no peeling paint, no aging roof, no missing handrail for the appraiser to flag, so you avoid the pre-closing repair scramble that older DFW homes can trigger. That means fewer surprises and a cleaner path to the closing table.

The one caution we give clients: builders often steer you toward their in-house or preferred lender with the incentive attached. You always have the right to choose your own lender, and it's worth comparing — an incentive isn't a deal if the loan pricing behind it is worse. We're happy to run the builder's offer against ours so you see the true bottom line.

Frequently Asked Questions

Which DFW counties share the $563,500 FHA limit?

The 2026 limit of $563,500 applies across the Dallas–Fort Worth–Arlington metro, including Dallas, Tarrant, Collin, and Denton counties plus surrounding metro counties. It's a single metro-wide figure, not a per-city number.

Are FHA loans harder to use on Frisco or Plano homes?

Not harder to use, but more inventory in Frisco, Plano, and Southlake now lists above the $563,500 cap, so your choices narrow. First-time FHA buyers there often focus on townhomes, FHA-approved condos, or newer construction in the outer suburbs.

How much are closing costs on a DFW FHA loan?

Typically 2% to 4% of the price — roughly $7,500 to $15,000 on a $375,000 home — on top of your down payment. Seller concessions of up to 6% and gift funds are the two levers that bring your out-of-pocket down.

Your Next Step

DFW rewards buyers who know their county before they shop. If you’ve got a 580-plus score, steady income, and can assemble roughly $13,000 in down payment — or a documented gift to cover it — you’re in FHA range across most of the metroplex.

Start with our pre-qualification quiz. It takes two minutes, it’s a preliminary estimate rather than a commitment, and it tells us which side of the metroplex fits your budget.

DISCLAIMER: This article is for informational and educational purposes only and does not constitute financial advice, a loan commitment, or a guarantee of any terms or rates. All mortgage lending is subject to credit and property approval. Rates, terms, and conditions are subject to change without notice. Not all borrowers will qualify for every program mentioned. Contact a licensed loan originator for information specific to your situation.

Cornerstone First Mortgage, LLC | NMLS #173855 | Equal Housing Opportunity. Licensed by the Texas Department of Savings and Mortgage Lending. Arizona Mortgage Broker License #0910407. www.nmlsconsumeraccess.org

This material is not from HUD or FHA and has not been approved by HUD, FHA, or any government agency. Cornerstone First Mortgage, LLC is not affiliated with or acting on behalf of any government agency.

Tanner Cook is a licensed Mortgage Loan Originator (NMLS #2090424), sponsored by Cornerstone First Mortgage, LLC (NMLS #173855).