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Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages, NMLS 1862492 · Last updated: November 12, 2026
An FHA loan is a mortgage insured by the Federal Housing Administration. An approved lender makes the loan, FHA insures it, and that insurance lets lenders use more flexible credit and down payment guidelines than many conventional loans. For a one-unit home in Harris County, Fort Bend County or Montgomery County, the 2026 FHA limit is $541,287, per the HUD limits file linked below. FHA is for a home you will live in as your primary residence. Texas property taxes, MUD bills and flood coverage change a Houston-area payment as much as the loan program does, so this page covers those too.
iQRATE Mortgages is a licensed mortgage broker, not a direct lender. We compare wholesale lenders for your file. Call or text (702) 766-3744 or start your application. Programs and terms vary by lender and are subject to credit, property and underwriting approval. This is not a commitment to lend.
FHA limits are set by county. Harris, Fort Bend and Montgomery counties all share one set of 2026 limits, which are the national base limits. Source: HUD 2026 forward mortgage limits and HUD Mortgagee Letter 2025-23.
| Units | 2026 FHA limit, Harris County | 2026 conforming limit, Harris County | FHA limit as a share of conforming |
|---|---|---|---|
| 1 | $541,287 | $832,750 | about 65% |
| 2 | $693,050 | $1,066,250 | about 65% |
| 3 | $837,700 | $1,288,800 | about 65% |
| 4 | $1,041,125 | $1,601,750 | about 65% |
A price above the FHA limit does not end the conversation. It means the loan amount may fit a conventional loan instead, up to the conforming limit, and above that a jumbo loan. Large-value neighborhoods near Houston such as River Oaks, West University and Memorial often land in jumbo territory.
Limits differ by county even inside Texas. These 2026 one-unit FHA limits come from our FHA program research for Texas metros:
| County | 2026 one-unit FHA limit |
|---|---|
| Harris, Fort Bend, Montgomery (Houston area) | $541,287 |
| Dallas, Collin, Tarrant | $563,500 |
| Travis (Austin area) | $571,550 |
| Bexar (San Antonio area) | $557,750 |
| El Paso, Bell | $541,287 |
Always confirm the current figure for your exact county on the HUD file before you write an offer.
Yes, if you will live in one of the units. FHA lets an owner-occupant buy a property with two to four units, and the limits in the table above rise with each unit. The other units can be rented, and the appraisal and income rules for that rent depend on the lender and current guidelines. FHA is not for a pure investment purchase. If you are buying a rental to hold, a Houston DSCR loan qualifies on the property's rent instead of your paystub.
FHA charges mortgage insurance, both an upfront premium that can be financed and an annual premium paid monthly. In Texas the larger line is often property tax. Texas property taxes are commonly 2% or more of value before exemptions, so escrow can be a bigger share of an FHA payment than the mortgage insurance. For a home inside the City of Houston and Houston ISD, the combined 2025 Harris Central Appraisal District (HCAD) rate is about $2.13 per $100 of taxable value, so a $350,000 taxable value is about $7,438 a year before exemptions. The unit-by-unit rate table lives on the Houston-area mortgage broker page, so we do not repeat it here.
That figure is before the homestead exemption, so a real bill is usually lower. Suburbs inside a Municipal Utility District (MUD) add a separate MUD tax on top; ask for the MUD rate before you sign a contract. Source: HCAD 2025 jurisdiction rates and Texas Comptroller property tax exemption rules.
Since the 2025 tax year, school districts must exempt $140,000 of a homestead's value. Owners who are 65 or older, or disabled, get $60,000 more, and Houston ISD lists $65,000 for them. Most of the other taxing units take 20% off. You file with HCAD after you move in; the usual deadline is April 30 of the tax year. Owner-occupants also get a cap on yearly appraisal increases after the first year. Because FHA is owner-occupied financing, this exemption applies to most FHA buyers. A lower tax bill can lower your escrow after your servicer's yearly review.
Want flood and tax numbers on a specific address? Call or text (702) 766-3744.
If the home is in a FEMA high-risk flood zone, the lender requires flood insurance. Many buyers outside those zones buy it anyway. Texas sellers must disclose flood history and whether the home is in a floodplain, and Hurricane Harvey in 2017 made flood history part of nearly every purchase near Houston. A new federal flood policy usually starts after a waiting period, but the wait is waived when you buy the policy with a new mortgage, so set it up before closing. We price the insurance before you lock so the full payment is not a surprise.
An FHA appraisal is both a valuation and a safety review. The appraiser looks at health and safety items such as peeling paint, roof condition and remaining life, utilities and access. Repairs the appraiser requires may need to be completed and reinspected before closing, which can affect your timeline. It is not a home inspection; hire an inspector separately. The video below, from iQRATE Mortgages, covers the appraisal items that most often hold up an FHA file. Condominiums are different again: the project generally must be on the HUD approved list, which you can check with the HUD condominium lookup.
Questions about your own score? Call or text (702) 766-3744 and I will walk through your file with you.
FHA sets credit-score tiers tied to how much you put down, and a lower score generally means a bigger down payment is needed. Many lenders also set their own minimum score above FHA's, which is why two lenders can give different answers on the same file. We compare lenders for you. In FHA's own debt-ratio math, unpaid medical collection balances are left out, though new collections opened during escrow can still stop an approval. Many FHA denials trace back to an individual lender's extra rules rather than FHA eligibility, so a "no" from one lender is not always the final answer. Read the official overview at the CFPB guide to FHA loans.
FHA sets the minimum rules, but each lender may add stricter ones, called overlays. A file can meet FHA's own math and still be declined by one lender because of that lender's extra requirements. That is why comparing several wholesale lenders matters more than any single quote. Two checks help before you apply: ask whether a lender's minimum credit score is higher than FHA's, and ask whether any new collection or debt opened during escrow could change the approval. Appraisal findings are the other common surprise, so look at the appraisal section above early.
| Question | FHA | Conventional | DSCR (investor) |
|---|---|---|---|
| Who it is for | Owner-occupants | Primary, second home or investment, by program | Non-owner-occupied rentals only |
| How you qualify | Your income, credit and debts | Your income, credit and debts | The property's rent against the full payment |
| Mortgage insurance | Upfront and annual premium | Private mortgage insurance, priced by credit score, may apply | Not an FHA-style premium |
| Property standards | FHA minimum property requirements | Lender and investor standards | Lender standards |
| Number of properties | One owner-occupied home at a time | Varies | Investors can buy many |
One real tradeoff: a conventional loan with a smaller down payment and a mid credit score can carry higher monthly mortgage insurance because it is priced by credit score, while with a high score the result often flips in conventional's favor. FHA mortgage insurance is not priced the same way. Only a side-by-side quote on your file shows which wins. For rentals, see DSCR loans, investor loans and portfolio loans. For repeat rental buyers, serial investor loans cover scaling past one property. Self-employed buyers whose tax returns understate income can compare bank statement loans.
FHA is more than one product. Besides the standard purchase loan, HUD publishes FHA options for renovation, refinancing and older homeowners; the CFPB FHA overview linked above is a good starting point. Which of these a lender actually offers, and on what overlays, varies, so we confirm that before we quote you. If you are weighing an FHA purchase against a rental strategy, here is how David puts it: "I've seen investors spend weeks negotiating a purchase price and then barely examine the financing terms. They focus on the interest rate. I look at the entire transaction: cash invested, monthly carrying costs, reserves, prepayment penalties, and the exit strategy." That same habit applies to a first home: we look at the whole payment, not one number.
FHA allows the whole down payment to be a gift from family and some other sources, if the gift is documented. Seller concessions toward closing costs and prepaids are allowed up to an FHA cap. Beyond that, Texas and local programs can help:
Assistance programs have their own income limits, price limits, education requirements and approved-lender rules. Compare the full payment and cash to close, not just the word "assistance," and ask the program administrator whether it carries any repayment terms.
Closing costs are what it costs to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close also includes prepaids, which are your own bills paid ahead: first-year homeowners insurance, daily interest to month-end, and an escrow deposit for future taxes and insurance, plus your down payment. Because Texas bills property tax each October and in arrears, lenders usually collect about 2 to 6 months of taxes into escrow at closing, partly offset by the seller's prorated tax credit. Texas has no transfer tax. Title insurance premiums are set by the Texas Department of Insurance. Your actual costs depend on county, price and loan type, so we do not quote a one-size range. Every line is itemized on your Loan Estimate.
iQRATE lends across Houston neighborhoods and suburbs including the Heights (77008, 77009), Montrose (77006), Garden Oaks and Oak Forest (77018), Meyerland (77096), Spring Branch (77055, 77080), EaDo and Third Ward (77003, 77004), Clear Lake (77058, 77062) and Kingwood (77339, 77345). Median values, incomes and rents for Houston, Harris, Fort Bend and Montgomery counties are on the Houston-area mortgage broker page rather than repeated here. What matters for FHA is that the one-unit limit of $541,287 is the same in all three counties. Houston has no zoning; deed restrictions and HOAs do that job, and an HOA or deed restriction affects your payment and what you can do with the home.
Case study from our own records: this is a real iQRATE client file, rounded, with names and addresses left out. It is also published on the Houston-area mortgage broker page. A buyer in Spring, north of Houston in Harris County, came to us and we first opened the file in December 2022. The buyer closed an FHA purchase in April 2024 on a primary home of about $335,000. Past results do not guarantee future outcomes.
We work Texas files from our Las Vegas office and close with local escrow and title. Apply online or contact us to schedule a call.
These are real reviews, quoted word for word. They are company-wide reviews from other markets, not from Houston-area buyers, and they describe the team in general rather than promising any outcome on your loan. See all iQRATE reviews and David's reviews on Experience.com.
“Andrei and David were so great! They’re helpful and communicated everything with me through the whole process. I am so pleased and look forward to using iqrate for my future investment properties. 10/10 Will be reccomending to friends.”
— Kassandra A., 5-star Google review (company-wide review, other market)
“Very efficient and transparent service. They go above and beyond to deliver the loan closure on time even in a very tight time line. Also very resourceful and knowledgeable staff. I’ll go to them again next time I need a loan.”
— Rita S. (Los Angeles, CA), 5-star Yelp review (company-wide review, other market)
“David handled the purchase of my investment duplex in Olympia - Washington State. He came recommended by my realtor, and was very attentive, closed on time, and communicated clearly.”
— Nnamdi C. (Lacey, WA), 5-star Zillow review (company-wide review, other market)
Our ratings: Google 5.0 from 77 reviews, Yelp 5.0 from 51 reviews, Zillow 5.00 from 9 reviews, and 5.0 stars from 87 reviews on Experience.com (October 2026). Learn more about iQRATE and David.
$541,287 for a one-unit home in Harris, Fort Bend and Montgomery counties. Two units are $693,050, three are $837,700 and four are $1,041,125, per HUD.
No. Repeat buyers can use FHA too, if the home will be their primary residence and they meet the program and lender guidelines.
Yes. FHA loans include an upfront premium and an annual premium. We show the full payment, with tax, insurance and mortgage insurance, before you commit.
Possibly. The condominium project or unit must meet FHA approval requirements. You can check a project with the HUD condominium lookup.
Often yes. The gift and donor must be documented under current guidelines.
Yes in FEMA high-risk flood zones, and it is wise in many other areas. We price it before you lock.
A Municipal Utility District pays for water, sewer and drainage in many suburbs through its own property tax. Lenders count it in your payment, so ask for the MUD rate before you sign.
About $2.13 per $100 of value in 2025 inside the City of Houston and Houston ISD, before exemptions (HCAD). A $350,000 home is about $7,438 a year before exemptions.
No. FHA is for a primary residence. You can buy a two- to four-unit property if you live in one unit. For pure rentals, ask about a DSCR loan.
It was closed to new applications as of October 2026. We watch for it to reopen. Harris County assistance and TSAHC and TDHCA programs may still apply.
No. Texas has no real estate transfer tax or deed stamps.
It may be possible after the applicable waiting period and with re-established credit. The timeline depends on the event and the full file, and lenders may add their own rules.
The loan is generally based on the lower supported value. The parties may renegotiate, you may bring additional funds, or the contract may offer other options to review with your agent.
No. iQRATE Mortgages is a mortgage broker. We shop lenders for your loan and do not fund loans ourselves.
Call or text (702) 766-3744, or apply now. The Houston mortgage broker page and Houston DSCR loans page linked above cover the other paths.
iQRATE Mortgages LLC NMLS 1862492 · David Ghazaryan NMLS 1486726 · (702) 766-3744 · Equal Housing Opportunity. iQRATE is a mortgage broker, not a lender. Licensed in Nevada, California, Texas and Florida. Verify us on NMLS Consumer Access. Programs, rates and terms change and are subject to credit, property and underwriting approval. This page is general information, is not a commitment to lend, and is not legal or tax advice.
