FHA Loans in Houston, TX

Houston is the largest city in Texas and one of the most active FHA markets in the country, driven by relative affordability and a constant flow of new residents. With a median sale price around $340,000 and a Harris County FHA loan limit that starts at $541,287 for 2026, most single-family homes across the metro fall within FHA reach — the limit sits well above the typical Houston price.

FHA is popular here because it lowers the cash needed to buy in a metro where saving is squeezed by rising rents. Buyers can put down as little as 3.5% with a credit score of 580 or higher, while scores of 500–579 require 10% down. Houston’s no-state-income-tax environment leaves more take-home pay for a mortgage, though the trade-off is higher property taxes — which, because FHA escrows taxes monthly, makes it important to budget the full payment rather than the rate alone.

The Texas Medical Center — the largest medical complex in the world — plus energy majors ExxonMobil and Chevron and a deep logistics and aviation sector give Houston an unusually broad base of documentable income that pairs well with FHA underwriting. Suburban submarkets like Katy, Cypress, Spring, and Pearland offer newer homes at prices that keep FHA down payment and closing costs manageable.

One Houston-specific caveat: county high-cost designations can shift, so while Harris County starts at the $541,287 floor, buyers should confirm the current limit on the HUD lookup before relying on a specific figure for a purchase.