FHA Loans in Texas and Colorado: 2026 Guide

FHA loans let you buy a home with 3.5% down and a credit score as low as 580, but the loan limits, requirements, and strategies vary meaningfully between Texas and Colorado. Texas buyers in Austin can borrow up to $571,550 on an FHA loan. Colorado buyers in Denver can go as high as $862,500 (JVM Lending, Sammamish Mortgage).

Here are the 2026 FHA loan limits by county, the requirements you need to meet, and how to get the best rate in each state.

2026 FHA loan limits by county

FHA loan limits are set annually by HUD based on median home prices in each county. The national floor for 2026 is $541,287 for a single-family home. Higher-cost counties get higher limits, up to the national ceiling of $1,249,125.

Texas FHA loan limits

County (metro)	2026 FHA limit (1-unit)
Travis (Austin)	$571,550
Dallas (Dallas)	$563,500
Tarrant (Fort Worth)	$563,500
El Paso (El Paso)	$563,500
Bexar (San Antonio)	$557,750
Harris (Houston)	$541,287

(JVM Lending)

Most Texas counties sit at or near the national floor of $541,287. Austin (Travis County) has the highest limit in the state at $571,550, reflecting its higher median home prices. Houston (Harris County) sits at the floor.

Colorado FHA loan limits

County (metro)	2026 FHA limit (1-unit)
Boulder (Boulder)	$879,750
Denver (Denver)	$862,500
Arapahoe (Aurora/Centennial)	$862,500
Douglas (Castle Rock/Highlands Ranch)	$862,500
Jefferson (Lakewood/Golden)	$862,500
El Paso (Colorado Springs)	$541,650

(Sammamish Mortgage)

The Denver metro counties (Denver, Arapahoe, Douglas, Jefferson) share a $862,500 limit because they fall within the same metropolitan statistical area. Boulder is even higher at $879,750. Colorado Springs (El Paso County) sits near the national floor at $541,650.

FHA loan requirements in 2026

FHA requirements are set federally and apply the same in both Texas and Colorado. Individual lenders may add their own overlays on top of these minimums.

Credit score and down payment

Credit score	Minimum down payment	Notes
580+	3.5%	Standard FHA minimum
500-579	10%	Fewer lenders offer this tier
Below 500	Not eligible	FHA floor

On a $400,000 home, 3.5% down is $14,000. With a credit score of 580, that is all you need to bring to the table (plus closing costs).

Debt-to-income ratio

FHA allows up to 43% back-end DTI as a general guideline, with exceptions up to 50% for borrowers with compensating factors (strong reserves, minimal payment shock, long employment history). Your lender runs this through FHA’s automated underwriting system (AUS), which makes the final determination.

Mortgage insurance premium (MIP)

FHA loans require two types of mortgage insurance:

Upfront MIP: 1.75% of the loan amount, typically financed into the loan. On a $386,000 loan (3.5% down on $400,000), that adds $6,755 to your balance.

Annual MIP: 0.55% of the loan balance per year for most borrowers (loan amounts under $726,200 with LTV above 95%), paid monthly. On a $386,000 loan, that is roughly $177 per month in the first year, declining as your balance drops.

For loans with LTV above 90% (which includes most 3.5%-down purchases), annual MIP lasts the life of the loan. You can only remove it by refinancing into a conventional loan once you reach 20% equity.

Property requirements

FHA requires the home to pass an FHA appraisal, which checks for health and safety issues beyond a standard appraisal. Common issues that can delay or block FHA approval:

• Peeling paint on homes built before 1978 (lead paint concern)
• Missing handrails on stairs
• Non-functional HVAC, plumbing, or electrical systems
• Water damage or foundation issues
• Roof with less than two years of remaining life

These are not deal-breakers, but the seller must repair them before closing. In competitive markets, this requirement occasionally puts FHA buyers at a disadvantage against conventional buyers who do not need FHA-specific repairs.

FHA loans in Texas: what is different

No state income tax advantage

Texas has no state income tax, which means your take-home pay is higher than in most states. That translates to more buying power at the same gross income. An FHA borrower earning $75,000 in Texas keeps roughly $3,300 more per year than the same earner in Colorado, where state income tax runs 4.4%.

Texas Section 50 rules for refinancing

Texas Constitution Article XVI, Section 50 imposes strict rules on home equity lending and cash-out refinances. While this does not affect your initial FHA purchase, it matters when you eventually want to refinance:

• Cash-out refinances on Texas homesteads are capped at 80% LTV
• The 2% fee cap applies to equity loans (though not to rate-and-term refinances)
• There is a 12-day cooling period and a one-year seasoning requirement between equity loans

If you buy with FHA and later want to refinance into a conventional loan to drop MIP, the Texas-specific rules add steps. Plan for this with your lender upfront.

TSAHC down payment assistance

Texas buyers can stack FHA loans with TSAHC down payment assistance, which provides 3-5% of the loan amount as a grant or forgivable second lien. On a $386,000 FHA loan, 5% TSAHC DPA is $19,300, which more than covers the 3.5% down payment ($14,000) and can offset closing costs.

FHA loans in Colorado: what is different

Higher loan limits in the Front Range

The Denver metro FHA limit of $862,500 is 59% higher than Houston’s $541,287. That is the difference between buying a starter home and buying a three-bedroom in a desirable neighborhood. If you are in the Denver, Boulder, or Jefferson County area, FHA can finance properties that would require jumbo financing in most of the country.

CHFA assistance programs

The Colorado Housing and Finance Authority (CHFA) offers down payment assistance for FHA buyers similar to TSAHC in Texas. CHFA programs provide up to 3% of the first mortgage as a second lien, with income limits that vary by county. The credit score minimum is typically 620 for CHFA programs, slightly higher than the FHA floor of 580.

Colorado Springs vs. Denver

Colorado Springs (El Paso County) has an FHA limit of $541,650, barely above the national floor. Denver is $862,500. If you are choosing between the two metros, the FHA limit is rarely the deciding factor, but it can matter on higher-priced properties. In Colorado Springs, a $550,000 home exceeds the FHA limit. In Denver, you have room up to $862,500.

Colorado state income tax and FHA affordability

Colorado levies a flat 4.4% state income tax, which reduces your take-home pay compared to Texas. On a $75,000 salary, that is roughly $3,300 per year in state taxes. For FHA qualification purposes, lenders use gross income (before state tax), so the tax does not affect your DTI ratio. But it does affect how much cash you have available for the down payment and closing costs, making DPA programs like CHFA more important for Colorado buyers.

FHA in Colorado mountain communities

Ski-town and mountain-community buyers face a unique challenge: many mountain condos do not meet FHA’s condo project approval requirements. The building itself must be on FHA’s approved condo list or go through a single-unit approval process. Check the FHA condo lookup before falling in love with a unit. Single-family homes and townhomes do not have this restriction.

How to get the best FHA rate

FHA rates are not set by the government. Individual lenders price them based on their own margins, risk appetite, and volume goals. The spread between the best and worst FHA rate on the same borrower profile can be 0.5 to 0.75 percentage points.

Shop at least three lenders. Compare FHA rates from 100+ lenders to see where your profile lands. The 60-second quote requires no credit pull and no contact information.

Improve your credit score before applying. Moving from 620 to 680 can drop your rate by 0.25 to 0.50 points. Moving from 680 to 740 drops it further and also lowers your MIP on some loan structures.

Consider FHA vs. conventional. If your credit score is 700+ and you can put 5% or more down, a conventional loan may cost less over time because PMI can be removed at 20% equity. FHA MIP stays for the life of the loan on most purchase transactions. Here is a side-by-side on a $400,000 home:

Factor	FHA (3.5% down)	Conventional (5% down)
Down payment	$14,000	$20,000
Loan amount	$386,000	$380,000
Upfront MIP/PMI	$6,755 (financed)	$0
Monthly MI	$177 (0.55% MIP)	$133 (est. PMI at 700 credit)
MI removal	Never (must refi)	At 20% equity (~7-8 years)
Rate (typical, 700 credit)	6.25%	6.50%

FHA gives you the lower rate and lower down payment. Conventional gives you the path to drop mortgage insurance. The crossover point depends on how long you stay in the home and how fast your equity grows.

Lock early. Once you are under contract, lock your rate. A 45 to 60-day lock gives you time to close without rate risk. FHA rates move with the broader market and can shift 0.125% to 0.25% in a week.

Get pre-approved in under two minutes to see your FHA rate options with no impact to your credit score.

More FHA and first-time buyer guides

• TSAHC Down Payment Assistance in Texas for stacking DPA with FHA loans
• Texas Closing Costs 2026: Fees and Savings for what you pay at closing in Texas
• What Waiting Until 2027 Costs Homebuyers for the cost of delaying your purchase
• Is Now a Good Time to Buy a House? for a five-signal decision framework

Frequently Asked Questions

What is the FHA loan limit in Texas for 2026?

The 2026 FHA loan limit in Texas ranges from $541,287 in most counties to $571,550 in Travis County (Austin). Dallas, Fort Worth, and El Paso counties are at $563,500. Houston (Harris County) sits at the national floor of $541,287.

What is the FHA loan limit in Denver, Colorado for 2026?

The 2026 FHA loan limit for Denver County is $862,500 for a single-family home. This same limit applies across the Denver metro area, including Arapahoe, Douglas, and Jefferson counties. Boulder County is slightly higher at $879,750.

What credit score do I need for an FHA loan in Texas or Colorado?

The minimum FHA credit score is 580 for 3.5% down payment, or 500 with 10% down. These are federal minimums that apply in both states. Individual lenders may require higher scores, typically 620 or above.

Can I use FHA with down payment assistance in Texas?

Yes. TSAHC provides 3-5% of the loan amount as a grant or forgivable second lien that can be paired with FHA financing. On a $386,000 FHA loan, 5% TSAHC DPA provides $19,300, which covers the 3.5% down payment and a portion of closing costs.

How long does FHA mortgage insurance last?

For loans with a down payment below 10%, FHA annual MIP lasts the life of the loan. The only way to remove it is to refinance into a conventional loan once you have at least 20% equity. For loans with 10% or more down, MIP drops off after 11 years.

Is FHA or conventional better for first-time buyers?

It depends on your credit score and down payment. FHA is typically better for buyers with credit scores below 700 or with less than 5% down. Conventional is usually better for buyers with 700+ credit and 5%+ down, because conventional PMI can be removed at 20% equity while FHA MIP cannot.

Sources

1. JVM Lending, “Texas FHA Loan Limits for 2026”
2. Sammamish Mortgage, “Colorado FHA Loan Limits for 2026”
3. HUD, “Maximum Mortgage Limits”
4. TSAHC, “Loans and Down Payment Assistance”
5. Bankrate, “Texas Mortgage Rates”