FHA Loans in San Antonio, TX: A First-Time Buyer’s 2026 Guide

Why San Antonio Is Still a First-Time Buyer’s Market

We work with buyers up and down the I-35 corridor, and San Antonio keeps showing up as the market where a modest income still buys a real house. The median sale price in the metro has been sitting in the high $200,000s to low $300,000s, which is a different planet from Austin 80 miles up the highway. For an FHA buyer putting down 3.5%, that price gap is the whole ballgame.

Bexar County is anchored by Joint Base San Antonio, a huge medical corridor, and a growing tech and manufacturing base. That mix of stable public-sector paychecks and entry-level private jobs is exactly the borrower FHA was built for: a 640 score, a couple years on the job, and enough saved for a small down payment but nowhere near 20%.

What Are the 2026 FHA Loan Limits in San Antonio?

HUD's 2026 FHA limit for a one-unit home in Bexar County is $557,750, a step above the $541,287 national floor. That caps the base loan on a single-family FHA purchase here, and it is far above the local median price, so the limit rarely becomes the thing that stops a San Antonio buyer.

Because the cap sits so high relative to what homes actually cost, most first-time buyers here never bump into it. Where it matters is on a two-to-four-unit property, which carries higher limits, or if you are shopping the pricier pockets on the far north side. You can confirm the current figure for any county on the official HUD FHA mortgage limits lookup.

The Real 3.5% Down Math on a San Antonio Home

Here’s how the pieces stack on a home near the local median, step by step:

Purchase price: whatever you and the seller agree on
FHA minimum down payment: 3.5% of that price
Base loan amount: the price minus your down payment
Upfront mortgage insurance: 1.75% of the base loan, usually financed
Total financed loan: the base loan plus that upfront premium

That 3.5% down figure requires a 580 or higher credit score. If your score lands between 500 and 579, FHA still allows a loan, but the down payment jumps to 10% of the price, nearly triple the 3.5% figure on that same house. Below 500, you’re not eligible. And be honest with yourself about overlays: plenty of lenders set their own floor at 600 or 620 even though FHA’s rule says 580, so the score you need in practice can be higher than the government minimum.

Gift funds are allowed for the entire down payment. We see this constantly with San Antonio buyers whose parents cover the whole 3.5% — it’s fully permitted as long as we document the gift with a signed letter and a paper trail on the transfer.

How Much Is FHA Mortgage Insurance Here?

Every FHA loan carries two insurance charges, and they trip up first-timers because they’re separate. There’s the 1.75% upfront premium we already financed into the loan, and then there’s the annual premium billed monthly. Annual FHA MIP depends on the base loan amount, loan term and original LTV; 0.55% of the loan balance applies to many common purchase scenarios, including a 30-year loan with less than 5% down at San Antonio price points.

To size it, multiply your loan balance by the annual percentage on your quote and divide by 12; that monthly amount rides along in your payment. Because you’re putting less than 10% down, that annual premium stays on the loan for its full life under the rules for new FHA loans. Most of our San Antonio clients don’t keep it forever, though — once they’ve built around 20% equity through payments and appreciation, we look at refinancing into a conventional loan to drop mortgage insurance entirely. Check how a quoted payment fits your income on our FHA eligibility and DTI calculator before you fall in love with a listing.

Where First-Time Buyers Actually Buy in San Antonio

The affordability story is real, but the neighborhood you pick changes your monthly cost more than a quarter-point of rate ever will.

Far West Side and Alamo Ranch give you newer construction and builder incentives, often under $340,000, which pairs well with an FHA loan because newer homes clear the appraisal cleanly.
Northeast (Converse, Universal City, Live Oak) puts you near the bases and Randolph, with solid entry prices in the $270,000s.
South Side and near the missions has some of the lowest entry points in the city, but older housing stock means the FHA appraisal matters more — more on that below.
Schertz and Cibolo, technically in Guadalupe and Comal counties, give commuters a suburban option with strong schools.

If you want the deeper local breakdown of programs and prices, our San Antonio FHA hub page keeps the current county data.

What Does the FHA Appraisal Flag on Older San Antonio Homes?

San Antonio has a lot of charming 1950s and 1960s housing, especially on the south and east sides, and the FHA appraisal is stricter than a conventional one because the appraiser is also checking that the home is safe and livable. On older local homes we most often see flags for peeling paint (a lead-paint concern on pre-1978 houses), missing handrails, exposed wiring, roof life under a couple of years, and water heaters without a proper pressure-relief valve.

None of these kill a deal. They just have to be repaired before closing, and we negotiate who pays. Which brings up the single most useful move for a cash-tight buyer here.

Can the Seller Help Pay Your Closing Costs?

Yes, and this is the tool we lean on hardest in San Antonio. FHA lets a seller contribute up to 6% of the purchase price toward your closing costs. Since closing costs here typically run 2% to 4% of the price, that 6% ceiling usually leaves room for the seller to cover all of them.

In a market with reasonable inventory like San Antonio, sellers agree to concessions often, especially on homes that have sat a few weeks. We’ve had first-time buyers get to the closing table needing little more than their 3.5% down payment plus earnest money, because the seller covered the rest. It’s the difference between buying this year and saving for another eighteen months.

How Property Taxes and the Homestead Exemption Affect Your Budget

Texas has no state income tax, and local governments lean on property taxes instead, so San Antonio buyers need to plan for them. A Bexar County bill combines the county, city, school district and any special districts on that parcel, so the total varies by address. Divide the yearly bill by 12 and that's what gets collected in your escrow account each month alongside homeowners insurance. First-time buyers routinely forget escrow exists, then feel blindsided, so we build the specific property's tax bill, exemptions and insurance quote into every pre-qualification and quote you the real all-in housing number.

Here's a local move that saves you money: once the home is your primary residence, file for the Texas homestead exemption. It lowers your taxable value and can trim your escrow once it's applied; how much depends on the exemptions each taxing unit offers. New buyers often miss the filing deadline in their first year and leave that savings on the table. We remind our San Antonio clients to file it, because a lower tax bill is one of the few ways to shrink your payment after you've closed.

Frequently Asked Questions

Do FHA loans have income limits in San Antonio?

No. Unlike most down payment assistance programs, FHA has no income limits. Whether you earn $40,000 or $140,000 in Bexar County, you can use an FHA loan — qualifying is based on your debt-to-income ratio, not a maximum income.

How long does an FHA loan take to close in San Antonio?

Most of our purchases close in 30 to 45 days from a signed contract. A clean file with documents ready can move faster; an older home that needs repairs before closing can add a week or two.

Can I buy a duplex in San Antonio with an FHA loan?

Yes. FHA finances two-to-four-unit properties with the same 3.5% down as long as you live in one unit. San Antonio's rental demand near the bases makes this a popular way to offset your payment.

Your Next Step

If you can cover 3.5% of a typical San Antonio price, whether from savings or a documented gift, have a 580-plus score, and two years of steady work history, you are likely closer to an FHA approval than you think. The only way to know your real numbers — not a national average — is to look at your actual file.

Take our two-minute pre-qualification quiz and we’ll give you a preliminary estimate for your situation. Curious how you’d compare on a conventional loan instead? We break down FHA versus conventional for first-time buyers honestly, and we’ll tell you if FHA isn’t your best fit.

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.

Zac Cook is a licensed Mortgage Loan Originator (NMLS #2111496), sponsored by Cornerstone First Mortgage, LLC (NMLS #173855).