FHA loans in San Antonio

What an FHA loan is

An FHA loan is a mortgage from a regular lender that the Federal Housing Administration insures. Because the government backs part of the risk, lenders can approve buyers with lower credit scores, smaller down payments and higher debt than most conventional loans allow.

It's one of the most common first-time buyer loans in San Antonio, and it's often the answer when a bank's conventional loan says no.

Credit and down payment

• 3.5% down with a credit score of 580 or higher.
• 10% down with a credit score from 500 to 579.
• Steady income and manageable debt. FHA is more flexible on debt-to-income than most loans, especially with strong savings or a long job history.

On a $280,000 home, 3.5% down is $9,800, for a loan of $270,200. My FHA calculator shows your full payment with taxes and insurance.

When the automated approval systems say no, FHA also allows a manual underwrite, where a human underwriter reviews the whole file. Not every lender will do one. Here's a buyer I helped that way after two other lenders turned him down.

The 2026 FHA limit in Bexar County

FHA caps how much you can borrow by county. For 2026, the limit for a single-family home in Bexar County is $557,750. Comal, Guadalupe and Medina counties have the same 2026 limit. Most San Antonio homes fall well under it.

HUD sets new limits each December for the following year, so I'll update this page when they change.

What mortgage insurance costs

Every FHA loan has two kinds of mortgage insurance premium (MIP), which is what protects the lender and makes the easier approval possible:

Rates for FHA case numbers endorsed on or after March 20, 2023, per HUD Mortgagee Letter 2023-05.

On that $270,200 loan, the upfront premium is $4,728.50, and most buyers add it to the loan instead of paying it at closing. The annual premium works out to about $124 a month, built into your payment.

FHA or conventional?

I compare both for almost every buyer, because the right answer depends on your credit and down payment:

• FHA often wins when your credit score is still building, you have higher debts, or you've had a recent credit event.
• Conventional often wins with strong credit, because its mortgage insurance (PMI) can cost less and can be removed once you reach 20% equity. Some conventional loans allow as little as 3% down.
• You can switch later. Many buyers start with FHA and refinance into a conventional loan once their credit and equity improve, which also ends the FHA mortgage insurance.

My conventional calculator lets you compare the two side by side.

Gifts, seller help and down payment assistance

• Gifts: your down payment can be a documented gift, for example from a parent.
• Seller help: sellers can pay up to 6% of the price toward your closing costs and other allowed costs.
• Down payment assistance: the TSAHC programs I offer work with FHA loans at a 620 or higher credit score and can cover up to 5% of the loan. See my first-time buyer guide for how they work.

Home and occupancy rules

• You have to live there. FHA loans are for your primary home, not a second home or a pure rental.
• 1 to 4 units are allowed, so a duplex where you live in one side works.
• The home has to pass an FHA appraisal, which checks value plus basic safety and soundness. Peeling paint, a broken water heater or missing handrails are typical fixes before closing.
• Condos must be FHA-approved, so check before you fall in love with one.