Lower Your Rate. Consolidate Debt. FHA Makes It Possible.
Refinance to a lower rate, consolidate high-interest debt, or buy your first home — FHA loans offer competitive rates, credit scores as low as 500, and flexible qualification for borrowers other lenders turn away.
FHA allows scores as low as 500 with 10% down. If other lenders turned you away, FHA gives you a path forward.
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Higher DTI Allowed
FHA allows debt-to-income ratios up to 57% with compensating factors — more flexibility than conventional for refinance or purchase.
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Just 3.5% Down to Buy
Purchasing? Just 3.5% down with 580+ credit. 100% of your down payment can come from gift funds or assistance programs.
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Seller Concessions Up to 6%
Sellers can contribute up to 6% toward closing costs — more generous than conventional loans.
Qualification
Who Qualifies for an FHA Loan?
FHA loans were created to expand homeownership access. If conventional lenders said no, FHA may say yes.
Credit & Income
Credit Score
580+ — Qualify with 3.5% down
500–579 — Qualify with 10% down
Debt-to-Income (DTI)
43% or lower — Standard approval
Up to 57% — Allowed with strong compensating factors (reserves, higher credit, stable income)
Income
W-2, 1099, self-employed, gig, commission — all acceptable with proper documentation
Recent Bankruptcy or Foreclosure? FHA allows qualification after at least 12 months of on-time Chapter 13 payments with written court permission (discharge is not always required), 2 years after Chapter 7, and 3 years after foreclosure (shorter than conventional).
Property & Loan
Property Type
Primary residence (1–4 units)
Condos (must be FHA-approved)
Manufactured homes (permanent foundation)
Loan Limits (2026)
Floor (most counties): $541,287 (1-unit)
High-cost ceiling: Up to $1,249,125
Limits are set by county — check your county's exact limit with HUD
Mortgage Insurance
Upfront MIP: 1.75% (can be financed)
Annual MIP: set by HUD by loan amount, down payment and term (paid monthly)
MIP required for life of loan if down payment is less than 10%
Good news: FHA MIP rates are standardized — no credit score pricing adjustments like conventional PMI.
65% of FHA loans
FHA Refinance: Lower Your Rate or Consolidate Debt
If you currently have an FHA loan or a conventional mortgage, refinancing to FHA can lower your rate, consolidate debt, or pull cash out for home improvements, education, or emergency reserves.
Rate-and-term refinance — lower rate, lower payment, same loan balance
Cash-out refinance — pull equity to pay off high-interest debt, fund projects, build reserves
Credit scores as low as 500 — more forgiving than conventional refi
Streamline refinance — if you already have FHA, use FHA Streamline for faster, lower-doc approval
DTI up to 57% — refinance even with existing debt load
Current mortgage: $250,000 Home value: $350,000 New FHA loan: $280,000 Cash out: $30,000 to pay off credit cards + car loan
Result: The $30,000 pays off the card and car balances. Whether your total monthly payments go down depends on your new rate, term and MIP; your written quote shows the comparison.
Why FHA over conventional? FHA accepts lower credit scores, higher DTI, and recent credit events. If conventional lenders declined you, FHA may approve.
35% of FHA loans
FHA Purchase: Buy Your First Home (or Your Next One)
FHA purchase loans are designed for first-time homebuyers and borrowers with less-than-perfect credit. Just 3.5% down, flexible credit, and seller concessions make homeownership accessible.
3.5% down payment with 580+ credit score
10% down with 500–579 credit score
100% of down payment can be a gift from family
Seller can contribute up to 6% toward closing costs
FHA allows co-borrowers who won't live in the home (non-occupant co-borrower)
Result: Minimal cash out of pocket: the down payment is a gift and the seller pays $6,000 of the closing costs.
Why FHA for purchase? Lower down payment, more forgiving credit, and seller concessions make it the most accessible path to homeownership.
Costs
FHA Mortgage Insurance (MIP) Explained
FHA loans require two types of mortgage insurance: upfront (financed into loan) and annual (paid monthly). Here's how it works.
Upfront MIP (UFMIP)
1.75%
One-time fee charged at closing. Typically financed into the loan — you don't pay it out-of-pocket.
Annual MIP
Set by HUD
Annual premium divided into 12 monthly payments. It depends on your loan amount, down payment and term; most 30-year loans with less than 5% down pay 0.55%. Paid for the life of the loan if down payment is less than 10%.
MIP vs PMI: What's the Difference?
FHA MIP: Required on every FHA loan. HUD sets the annual rate by loan amount, down payment and term, not by credit score; most 30-year loans with less than 5% down pay 0.55%. Paid for the life of the loan with less than 10% down; 11 years with 10% or more down.
Conventional PMI: Required on conventional loans with less than 20% down. Rate varies based on credit score (0.3%–1.5%). Automatically drops off at 78% LTV or can be removed at 80% LTV.
Bottom line: FHA MIP is more predictable but lasts longer. Conventional PMI costs more for lower credit scores but drops off sooner.
Note: If you put 10% or more down on an FHA loan, annual MIP drops off after 11 years instead of lasting for the life of the loan.
Compare
FHA vs Conventional vs VA
FHA offers the best balance of low down payment, flexible credit, and accessible qualification — especially for borrowers with credit challenges or limited savings.
Feature
FHA
Conventional
VA
Minimum Down Payment
3.5%
3%
0%
Minimum Credit Score
500
620
580
Max DTI
57%
50%
60%
Mortgage Insurance
Required (MIP)
Required if <20% down (PMI)
No PMI (Funding Fee instead)
Seller Concessions
6%
3%
4%
Gift Funds for Down Payment
✓ 100%
✓ Partial
✓ 100%
Property Requirements
FHA appraisal + min standards
Standard appraisal
VA appraisal (strict)
Eligibility
Anyone (primary residence)
Anyone
Veterans only
Best For
Lower credit, limited savings, debt consolidation
Strong credit, 20%+ down
Veterans/active duty
Calculate
FHA Payment Calculator
See your estimated monthly payment with FHA MIP, property taxes, insurance, and debt consolidation savings.
Estimates only. Actual rates, MIP, and payments will vary based on credit, property, and market conditions. Subject to credit approval.
Process
FHA Loan Timeline: 30 Days or Less
We close most FHA loans in 30 days or less. Here's the step-by-step process.
1
Apply & Get Pre-Approved
1–2 Days
Submit your application online or by phone. We'll pull a soft credit check, review your income and assets, and issue a pre-approval letter. For refinances, we'll also review your current mortgage.
2
Lock Your Rate & Submit Docs
3–5 Days
Once you're ready to move forward, we'll lock your rate and collect full documentation: pay stubs, bank statements, tax returns, and property details. Most docs can be uploaded digitally.
3
FHA Appraisal & Underwriting
7–14 Days
We order an FHA appraisal to confirm property value and safety/livability standards. Underwriting reviews your credit, income, assets, and property. We'll request any additional documentation if needed.
4
Clear to Close & Funding
5–7 Days
Once underwriting issues final approval ("clear to close"), we schedule your closing. You'll sign documents, receive your funds (for refinances/cash-out), and officially own your new loan. We handle the rest.
FAQ
Frequently Asked Questions
Your top FHA loan questions, answered.
No. Our initial rate check uses a soft credit pull, which does not affect your credit score. A hard credit pull only occurs when you formally apply and authorize it.
Yes. FHA allows credit scores as low as 500 with 10% down. Scores 580+ qualify with 3.5% down. Contact us to review your specific situation.
FHA requires two types of mortgage insurance: Upfront MIP (1.75% of loan amount, financed into loan) and Annual MIP (set by HUD by loan amount, down payment and term; most 30-year loans with less than 5% down pay 0.55%, paid monthly). MIP lasts for the life of the loan if down payment is less than 10%.
Yes. 100% of your down payment can come from gift funds from a family member, employer, or approved charity. The donor must provide a gift letter confirming the funds are a gift, not a loan.
For 2026, the FHA loan limit floor in most counties is $541,287 for a single-family home, with high-cost areas up to $1,249,125. Limits are set by county — check your county's exact limit with HUD.
Absolutely. FHA cash-out refinances are ideal for consolidating high-interest debt. You can refinance up to 80% LTV, pull cash out, and use it to pay off credit cards, auto loans, student loans, medical bills, or any other debt. Whether you save depends on your new rate, term and MIP compared with what you pay now.
Yes. If your credit has dropped, your DTI is too high for conventional, or you want to access cash-out at a lower rate, refinancing from conventional to FHA is common and effective.
Most FHA loans close in 30 days or less. Pre-approval takes 1–2 days. Full approval depends on appraisal turnaround (7–14 days) and how quickly you provide documentation.
Yes. FHA allows qualification after at least 12 months of on-time Chapter 13 plan payments with written bankruptcy court permission (discharge is not always required), 2 years after Chapter 7 discharge, and 3 years after foreclosure. Shorter waiting periods than conventional loans.
FHA allows DTI up to 57% with strong compensating factors (cash reserves, higher credit score, stable employment). Standard guideline is 43%. We evaluate each application individually.
Yes. Self-employed borrowers qualify with 2 years of tax returns, profit & loss statements, and business bank statements. We also accept 1099 income, gig income, and commission-based income.
FHA loans don't have PMI — they have MIP (Mortgage Insurance Premium). It functions similarly: Upfront MIP (1.75%) + Annual MIP (set by HUD by loan amount, down payment and term, paid monthly). MIP lasts for the life of the loan if down payment is less than 10%.
Yes, with FHA 203(k) Renovation Loan. This allows you to finance both the purchase price and renovation costs into one loan. Perfect for buying a fixer-upper, rehabbing it, and building equity.
FHA appraisals confirm property value and safety/livability standards. The appraiser checks for structural integrity, working systems (HVAC, plumbing, electrical), and health/safety hazards. Minor repairs may be required before closing.
Yes. FHA loans are available for 1–4 unit properties as long as you occupy one unit as your primary residence. Great for house hacking — rent out the other units to offset your mortgage payment.
Typical FHA closing costs are 2–5% of loan amount: appraisal ($500–$700), title insurance ($1,000–$2,000), origination fee (ask for written terms), upfront MIP (1.75%, usually financed), and misc fees. Sellers can contribute up to 6% toward your closing costs.
Yes, but the condo must be on the FHA-approved condo list. Check with us to verify eligibility before making an offer. Most major condo complexes are approved.
If you already have an FHA loan, FHA Streamline allows you to refinance with reduced documentation, no appraisal (in most cases), and faster approval. You must demonstrate a net tangible benefit (lower rate or payment).
If you put down less than 10%, MIP lasts for the life of the loan. If you put down 10% or more, MIP drops off after 11 years. The only way to remove it sooner is to refinance to a conventional loan once you reach 20% equity.
Standard docs: 2 years tax returns, 2 recent pay stubs, 2 months bank statements, proof of any other income (rental, investment, alimony, etc.), photo ID, and recent mortgage statement (for refinances). Self-employed borrowers need profit & loss statements and business bank statements.
Yes. FHA counts 0.5% of the outstanding student loan balance as your monthly payment (or actual payment if higher). Example: $50K student loan balance = $250/month counted in DTI. Deferred/forbearance loans still count.
Reviews
What Our Borrowers Say
Real reviews from real borrowers who chose Texana Bank for their FHA loan.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
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Mikayla Irwin
★★★★★
Lynette Heck is the best to work with. No matter what we needed, she was on top of it and thinking of things way before we needed it! We really appreciate everything she did for us!
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Mark Sherrard
★★★★★
Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
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Carson Romero
★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
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Zane Atkins
★★★★★
Parker McMahan has helped us with 3 mortgages and a refi in part few years. Always great service-always honest advice. Texana will be my “go to” for mortgage advice and activity from here on. They are also great in the area of VA home loans.
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Gary McDay
★★★★★
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
K
Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
Ready to Lower Your Rate or Buy Your First Home?
Apply in 2 minutes. Get pre-approved in 24 hours. Close in 30 days or less.
