What credit score do you need for an FHA loan in Texas?

As little as 3.5% of the purchase price when your credit score meets the standard minimum. That money can come from savings, a documented gift from family, or an eligible down payment assistance program.

It depends on your down payment. With the minimum down payment it generally lasts for the life of the loan, and the usual way to get rid of it is to refinance. With 10% or more down, it typically drops off after 11 years.

A standard FHA loan requires the home to meet minimum property standards at appraisal, so a home needing major repairs can be a problem. FHA also offers a renovation loan option that rolls repair costs into the mortgage, which is worth asking a lender about.

Neither is better for everyone. Buyers with strong credit often pay less per month with a conventional loan and PMI, while buyers with lower scores or less savings often come out ahead with FHA. A lender can price both for your situation so you can compare.