FHA loans make homeownership accessible to first-time buyers, those rebuilding credit, and anyone with limited down payment savings. Insured by the Federal Housing Administration, FHA loans allow you to purchase a home with as little as 3.5% down and credit scores as low as 580.
What Is an FHA Loan?
An FHA loan is a government-insured mortgage designed to help more Americans achieve homeownership.
Because the Federal Housing Administration insures these loans against default, lenders can offer more flexible qualification requirements than conventional financing.
FHA loans are particularly popular with first-time homebuyers, though you don’t have to be a first-time buyer to qualify.
Anyone who meets the credit, income, and property requirements can use FHA financing.
FHA Loan Benefits for Dallas Homebuyers
Low down payment. Just 3.5% down with a 580+ credit score—and 100% of that can come from gift funds from family members.
Flexible credit requirements. FHA accepts credit scores as low as 500 (with 10% down) or 580 (with 3.5% down).
Higher debt-to-income ratios. FHA allows DTI ratios up to 43-50% in some cases, making it easier to qualify with existing debts.
Seller concessions. Sellers can contribute up to 6% of the purchase price toward your closing costs.
FHA Loan Limits in Dallas County
For 2024, the FHA loan limit in Dallas County is $498,257 for a single-family home. Higher limits apply for 2-4 unit properties. If you need more than the FHA limit, consider conventional or jumbo financing.
FHA vs. VA Loans: Which Is Right for You?
If you’re a veteran or active-duty service member, VA loans are typically the better choice. VA offers zero down payment (vs. 3.5% for FHA), no mortgage insurance, and usually lower rates.
The only scenario where FHA might be preferable is if you have very limited credit history or unique circumstances. Contact me to compare both options.
