3.5% down.Know the MIP math.
FHA opens the door at 3.5% down with a 580 score, but its mortgage insurance follows rules most buyers hear about only after closing. Here is the full picture, with real DFW limits and the math.
Our comparative assessment: cash saved 40%, ease 25%, speed 15%, fewer strings 20%. Full rankings
FHA loans are insured by HUD and allow 3.5% down with a 580 credit score, or 10% down with a score from 500 to 579. Every FHA loan carries an upfront mortgage insurance premium of 1.75% and an annual premium. With less than 10% down, the annual premium lasts for the life of the loan. Sellers and other interested parties can contribute up to 6% of the price, and gift funds and down payment assistance are allowed.
Who qualifies.
- Credit score of 580 or higher for 3.5% down (96.5% loan-to-value).
- Credit score from 500 to 579 with 10% down (90% loan-to-value).
- At least one borrower moves in within 60 days of signing and intends to live there at least one year.
- Loan amount within the 2026 FHA limits for Dallas, Collin, Denton and Tarrant counties: $563,500 for 1 unit, $721,400 for 2, $872,000 for 3, $1,083,650 for 4.
- For 3 to 4 units, the self-sufficiency test: in practice, 75% of fair market rents must cover the full payment (PITI).
How it works.
Pre-approval with an FHA lender
The score sets the minimum down payment: 3.5% at 580 and above, 10% from 500 to 579.
Line up the down payment
Gift funds and down payment assistance are allowed, so the 3.5% does not have to come only from savings.
Negotiate the contract
Sellers and other interested parties can contribute up to 6% of the sales price toward the buyer's costs.
Appraisal and underwriting
The lender confirms the loan fits the FHA county limit and, on 3 to 4 units, that rents pass the self-sufficiency test.
Close and move in
The 1.75% upfront MIP is charged at closing. At least one borrower moves in within 60 days.
Example: a $350,000 FHA purchase with 3.5% down
Example only. Upfront MIP is $5,910.63, shown rounded. The annual MIP shown is 0.55% of the $337,750 base loan for year one. Premiums are from HUD Handbook 4000.1 (updated August 12, 2026) for terms over 15 years and base loans of $726,200 or less. Principal, interest, property taxes and insurance are not included and vary.
The packet includes the 2026 DFW FHA limits, the MIP rules by down payment, a document checklist and a vetted FHA lender match.
What works
- 3.5% down with a 580 score, and a path at 500 to 579 with 10% down.
- Up to 6% of the price in seller and interested-party contributions.
- Gift funds and down payment assistance are allowed.
- Buys 1 to 4 units when one is the buyer's home, with 2026 DFW limits up to $1,083,650 for 4 units.
- 203(k) versions finance repairs into the loan.
What it costs you
- Below 10% down, the annual MIP lasts for the life of the loan.
- Every loan pays a 1.75% upfront MIP.
- The 2026 one-unit limit in DFW is $563,500, which caps the loan size.
- Occupancy is required: move in within 60 days and intend to stay at least one year.
The part nobody explains.
FHA MIP lasts the life of the loan below 10% down, so many buyers later refinance into a conventional loan to drop it once they have enough equity.
At 10% down or more, annual MIP drops to 0.50% and ends after 11 years instead of lasting for the life of the loan.
FHA allows up to 6% in seller and interested-party contributions; conventional caps it at 3% above 90% loan-to-value. On a tight budget that gap is real money.
On DFW 3 and 4 unit loans, the FHA limit can exceed $726,200. Above that base loan, annual MIP rises to 0.75% at 3.5% down.
Standard 203(k) is for $5,000 or more in repairs and requires a consultant. Limited 203(k) covers minor nonstructural work up to $75,000, and the consultant is optional.
Get the packet.
The official links are not on this page on purpose. They come in one email, organized, with what to do with each one and in what order.
- The packet includes the 2026 DFW FHA limits, the MIP rules by down payment, a document checklist and a vetted FHA lender match.
- Every official link for this program, plus the links for every guide you explored here
- A match with a Texava-vetted lender who closes this program
- A direct reply from Albert in English or Spanish
Where should I send it?
Your packet is on its way.
Every guide you explore before you leave gets added to the next packet. Keep reading below.
Programs stack.
TSAHC's grant option, up to 5% of the loan, works with FHA, VA and USDA loans.
Texas / TDHCA / First-time buyers6.4My First Texas HomeMy First Texas Home pairs FHA with 2% to 5% down payment assistance for first-time buyers.
Strategy / 2 to 4 units7.4House hacking (2 to 4 units)FHA finances 2 to 4 units with 3.5% down when the buyer lives in one of them.
Side by side.
The Texava Score weighs what matters to a buyer: cash saved 40%, ease to qualify 25%, speed and paperwork 15%, fewer strings 20%.
Asked most.
Can FHA mortgage insurance be removed?+
With 10% or more down, annual MIP ends after 11 years. With less than 10% down, it lasts for the life of the loan. Many buyers in that case later refinance into a conventional loan.
What is the FHA loan limit in DFW?+
For 2026 in Dallas, Collin, Denton and Tarrant counties: $563,500 for 1 unit, $721,400 for 2 units, $872,000 for 3 units and $1,083,650 for 4 units.
Can a family member give the down payment?+
Yes. FHA allows gift funds and down payment assistance.
What is the difference between Standard and Limited 203(k)?+
Standard 203(k) is for repairs of at least $5,000 and requires a 203(k) consultant. Limited 203(k) covers minor nonstructural repairs, capped at $75,000 of rehab, with the consultant optional.
The value compounds.
3% down, PMI that comes off
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