What is the FHA loan limit in Houston?
Harris County’s 2026 FHA limit is $541,287 — the statewide baseline, and the lowest of the four major Texas metros. Dallas–Fort Worth reaches $563,500 and Austin $571,550. HUD sets limits on median home price rather than population, which is why the largest metro in Texas has the smallest FHA ceiling.
Key Takeaways
- Harris County’s 2026 FHA limit is $541,287 — about $23,000 less purchasing ceiling than Dallas–Fort Worth.
- 26.8% of 2024 Harris County purchases were FHA (23,240 loans). Montgomery County ran 30.2%. Austin’s Travis County: 13.1%.
- The average Harris FHA loan was $294,390 — roughly a $305,000 home and about $10,700 down.
- Property tax swings $239 a month on that same price depending on district, from $337 in Conroe ISD to $576 in Cy-Fair ISD.
- Flood zone status and MUD assessments both land in escrow and both reduce what you qualify for. Check them before you offer.
What Is the FHA Loan Limit in Houston?
Start here, because it is the number that constrains everything else — and because the answer surprises most people.
| Metro | County | 2026 FHA limit | Max price at 3.5% down |
|---|---|---|---|
| Houston | Harris, Fort Bend, Montgomery, Galveston | $541,287 | ~$560,900 |
| San Antonio | Bexar, Comal, Guadalupe | $557,750 | ~$578,000 |
| Dallas–Fort Worth | Dallas, Tarrant, Collin, Denton | $563,500 | ~$583,900 |
| Austin | Travis, Williamson, Hays | $571,550 | ~$592,300 |
2026 FHA single-family forward mortgage limits. Verify your specific county at HUD’s official FHA mortgage limits lookup before writing an offer — limits are reset annually.
Houston is the largest metro in Texas and carries the lowest FHA ceiling of the four majors. It sits at the statewide baseline while Dallas-Fort Worth, San Antonio and Austin all qualify for high-cost adjustments.
The reason is that HUD sets limits on local median home price, not population. Houston’s median is lower than Austin’s or the Collin and Denton County submarkets, so it stays at the floor. The practical effect: a Houston FHA buyer has roughly $23,000 less purchasing ceiling than the same buyer in Frisco.
A limit is not a target. It is the most FHA will insure in your county, not a recommendation. Your real budget is the monthly payment you can carry — principal, interest, taxes, insurance, flood if applicable, and any HOA. In Houston those last two move the number more than most buyers expect.
How Common Are FHA Loans in Houston?
Common enough that everyone in the transaction handles them routinely, which matters more than it sounds — an agent or appraiser who rarely sees FHA files is where delays come from.
| County | 2024 purchase loans | FHA loans | FHA share | Average FHA loan |
|---|---|---|---|---|
| Harris | 86,682 | 23,240 | 26.8% | $294,390 |
| Montgomery | 31,229 | 9,417 | 30.2% | $280,736 |
| Galveston | 10,582 | 2,748 | 26.0% | $302,271 |
| Fort Bend | 24,420 | 6,296 | 25.8% | $330,667 |
| Travis (Austin), for contrast | 26,851 | 3,507 | 13.1% | $371,829 |
Source: Consumer Financial Protection Bureau, Home Mortgage Disclosure Act (HMDA) data, 2024 home purchase originations, all lenders, by county.
Roughly one in four Houston-area purchases is an FHA loan, and in Montgomery County it is closer to one in three. Austin, by contrast, runs at 13.1 percent. Houston is a genuine FHA market.
The average Harris County FHA purchase loan was $294,390, which implies a purchase price near $305,000 and a down payment of about $10,700. That is the realistic middle of this market — well below the $541,287 ceiling.
What Will Taxes and Insurance Actually Cost?
This is where Houston FHA files get decided. FHA underwriting counts your full escrow — taxes, homeowners insurance, mortgage insurance, and flood insurance if required — against your debt-to-income ratio. Two identical houses at the same price can qualify you differently.
| Where you buy | County / school district | Composite rate | Tax per month on $305,000 |
|---|---|---|---|
| Unincorporated Montgomery Co. | Montgomery / Conroe ISD | 1.33% | $337 |
| Houston, inner loop | Harris / Houston ISD | 2.08% | $528 |
| Katy | Harris / Katy ISD | 2.22% | $565 |
| Sugar Land | Fort Bend / Fort Bend ISD | 2.24% | $569 |
| Northwest Houston | Harris / Aldine ISD | 2.23% | $568 |
| Cypress | Harris / Cypress-Fairbanks ISD | 2.27% | $576 |
Source: Texas Comptroller of Public Accounts, 2025 Tax Rates and Levies. Composite = county + city + school district + applicable countywide districts (hospital district, community college, port authority). Excludes MUD and PID assessments; assumes no exemptions applied.
That is a $239 monthly spread on the same $305,000 purchase price — roughly $2,870 a year — driven entirely by which side of a district line you land on.
Two Houston-specific escrow items to plan for. First, MUD districts. Large parts of Katy, Cypress, Fulshear and north Harris County sit inside a Municipal Utility District that adds an assessment on top of the rates above. Ask for the MUD name and rate before you commit to a lot. Second, flood insurance. If the property is in a FEMA Special Flood Hazard Area it is required, escrowed, and counted in your debt-to-income. Get the flood determination early rather than at appraisal — it can change what you qualify for.
Windstorm coverage is a third item if you are looking toward Galveston County. Model the real escrow, not a metro average, in the mortgage calculator or the FHA loan calculator.
FHA or Conventional in Houston?
Harris County ran 66.3% conventional against 26.8% FHA in 2024, so this is a real decision, not a formality.
| FHA | Conventional | |
|---|---|---|
| Down payment | 3.5% with qualifying credit | As little as 3% |
| Credit flexibility | More forgiving | Stricter |
| Mortgage insurance | Annual MIP, typically for the life of the loan | Drops off at 20% equity |
| Seller contribution cap | 6% | 3% above 90% LTV |
| Property condition | Minimum property standards apply | More tolerant of deferred maintenance |
| Best for | Access — getting in with less cash or thinner credit | Long-run cost, if you can qualify |
The short version: FHA wins on getting in, conventional wins on staying in. If your credit is strong enough for conventional and you plan to hold the loan, conventional usually costs less over time because the mortgage insurance eventually stops. Compare on the FHA vs conventional page, or see Texas conventional mortgages.
One FHA advantage that gets overlooked here: the 6% seller contribution cap, double what a high-LTV conventional loan allows. With Houston inventory and months’ supply both up year over year, that is real negotiating room — and applied to a rate buydown rather than a price cut, it moves the payment considerably more.
Where Houston FHA Buyers Are Actually Buying
Each community page below covers local conditions, tax rates and the questions that come up most often there.
- Katy — Cinco Ranch and the Grand Parkway corridor. Heavy new build, and heavy MUD exposure.
- Cypress — Bridgeland and northwest Harris County. Cy-Fair ISD carries the highest composite rate in this table.
- Missouri City — Sienna and the Fort Bend value corridor.
- Sugar Land — established Fort Bend housing, more move-up than first purchase.
- The Woodlands and Montgomery County — the lowest tax rates in the metro, and the highest FHA share at 30.2%.
- League City and Friendswood — Clear Lake and Galveston County, where windstorm coverage enters the escrow.
Full metro overview on the Greater Houston mortgage guide.
Where FHA Deals Actually Fall Apart in Houston
Three things account for most of the FHA files that stall in this market, and all three are avoidable if you know about them before you write the offer.
1. Property condition on older housing
FHA appraisers evaluate against minimum property standards, not just value. Inside the loop and across the older east and north sides, that means peeling paint on a pre-1978 home, a roof near the end of its life, missing handrails, or non-working systems can all require repairs before closing. A conventional appraisal would often absorb the same issues. If you are shopping older stock, know which program a specific property can support before you write, not after the appraisal comes back.
2. The flood determination arriving late
Houston has more properties in and near Special Flood Hazard Areas than any other Texas metro, and flood insurance is required, escrowed, and counted against your debt-to-income when the property sits in one. Buyers who discover this at appraisal sometimes find the payment no longer fits. Order the flood determination as soon as you have an address. It costs almost nothing and it is the single most common late surprise on a Houston FHA file.
3. MUD assessments nobody mentioned
Large parts of Katy, Cypress, Fulshear and north Harris County sit inside Municipal Utility Districts that add an assessment on top of the county, city and school rates in the table above. Texas requires MUD disclosure at sale, but that often arrives after you are emotionally committed to a lot. Ask for the MUD name and its current rate the day you tour the property.
None of these are reasons to avoid FHA in Houston — one in four purchases here uses it. They are reasons to build the real payment first and shop the house second.
How Does an FHA Purchase Work Here?
- Conversation first, no credit pull. Where you are looking, what you earn, and whether FHA or conventional actually fits better.
- Escrow reality check. We build the real payment for the specific district — taxes, insurance, MIP, flood if applicable — before you fall in love with a house.
- Shop the file. FHA is a government program but the pricing is not uniform. Lender overlays on credit score and debt-to-income vary widely, and we take the file to several.
- Pre-approval. Credit runs, documents get verified, and your offer carries weight with a listing agent.
- Appraisal and property standards. FHA appraisers check minimum property standards. On older inner-loop housing this is where deals slow down, so we flag likely issues before you offer.
- Close, then review annually. Once you have equity, refinancing out of FHA mortgage insurance is often the single biggest saving available. We look at it every year.
Common Questions
+ What is the FHA loan limit in Houston?
For 2026, Harris County carries the statewide baseline FHA limit of $541,287 for a single-family home. That is the maximum FHA will insure, which at 3.5 percent down supports a purchase price of roughly $560,900. Fort Bend, Montgomery and Galveston counties are also at the baseline. Confirm your specific county at HUD’s official FHA mortgage limits lookup before you write an offer, since limits are reset annually.
+ Why is Houston’s FHA limit lower than Dallas or Austin?
HUD sets limits county by county based on local median home prices. Dallas-Fort Worth counties reach $563,500 and the Austin metro counties reach $571,550, while Harris County sits at the $541,287 baseline. It surprises people, because Houston is the largest metro in the state. The reason is that HUD is measuring median price, not population, and Houston’s median is lower than Austin’s or the Collin and Denton County submarkets.
+ How common are FHA loans in Houston?
More common than most buyers assume. In Harris County, 26.8 percent of 2024 home purchase loans were FHA – 23,240 loans – according to CFPB HMDA data. Montgomery County ran higher at 30.2 percent. For comparison, Travis County in Austin was 13.1 percent. Roughly one in four Houston-area purchases is an FHA loan, so appraisers, agents and title companies here handle them routinely.
+ How much do I need down on an FHA loan in Houston?
3.5 percent with a qualifying credit score. The average FHA purchase loan in Harris County in 2024 was $294,390, which implies a purchase price near $305,000 – about $10,700 down. FHA also allows the entire down payment to come from a documented gift from a relative, which is one of the program’s most useful features.
+ Does flood zone status affect an FHA loan in Houston?
It affects the payment, not the eligibility. If the property sits in a FEMA Special Flood Hazard Area, flood insurance is required and it is escrowed alongside taxes and homeowners insurance. That premium is part of your debt-to-income calculation, so a home in a flood zone qualifies you for less than an identical home outside one. Get the flood determination early – not at the appraisal – because it can change what you can afford.
+ What are property taxes on a Houston FHA purchase?
It depends heavily on the school district and county. On a $305,000 home, 2025 adopted rates produce roughly $528 a month in Houston ISD, about $576 in Cypress-Fairbanks ISD, and about $337 in unincorporated Montgomery County under Conroe ISD. That is a $239 monthly spread on the same purchase price, before insurance. Since FHA underwriting counts the full escrow, the district you buy in changes what you qualify for.
+ Can I use an FHA loan on a new build in the Houston area?
Yes, two ways. You can use a standard FHA purchase loan on a completed spec home from a builder, which is common in Katy, Cypress and Fulshear. Or you can use the FHA One-Time Close to finance a ground-up build, lot and permanent mortgage in a single closing. Very few lenders offer the second one.
+ Is FHA or conventional better in Houston?
It depends on your credit and how long you plan to hold the loan. FHA wins on access – 3.5 percent down and more flexible credit. Conventional wins on long-run cost, because its mortgage insurance drops off at 20 percent equity while FHA’s annual premium typically runs for the life of the loan. In Harris County, 66.3 percent of 2024 purchases were conventional, so it is worth pricing both.
+ Do Houston sellers help with FHA closing costs?
Frequently. FHA permits a seller to contribute up to 6 percent of the sales price toward closing costs and prepaid items – double the 3 percent cap on a high-LTV conventional loan. With Houston inventory and months’ supply both up year over year, that 6 percent allowance is one of FHA’s most underused advantages here.
About the Author
Adam Bartling is a licensed Texas mortgage broker and loan officer, and a retired U.S. Army Captain. He works exclusively in Texas and exclusively as a broker — multiple wholesale lenders compete for each file rather than one bank dictating the terms.
Having served, he understands PCS timelines and entitlement questions firsthand. Clients get a dedicated processor, no upfront credit pull, and an annual loan review for as long as they own the home. More about Adam.
