FHA Loans — Low Down Payment with More Flexibility

As little as 3.5% down, flexible qualifying, and the ability to stack with down payment assistance. FHA is one of the most common paths for Rio Grande Valley buyers — and the right answer depends on your full file, not one number.

See If I Qualify

What Is an FHA Loan?

An FHA loan is backed by the Federal Housing Administration — meaning the government insures the lender if you default. That safety net lets lenders offer better terms to buyers who wouldn't qualify for conventional financing.

Flexible Credit Review

FHA guidelines can be more flexible than conventional loans, but lender and DPA overlays still matter. We check the full file before you self-disqualify.

3.5% Down Payment

On a $250,000 home that's $8,750 down — and that can come from a gift, grant, or down payment assistance program.

Flexible Debt Ratios

FHA can allow more room than many conventional loans when credit, reserves, income stability, and compensating factors support the file.

Non-Occupant Co-Signer Allowed

A parent or family member can co-sign without living in the home — a major advantage conventional loans don't offer.

FHA at a Glance

Here's the clean borrower-facing version. Final approval still depends on current FHA rules, investor overlays, and any DPA program stacked on top.

Factor	FHA Guideline
Credit Review	Flexible FHA guidelines; lender, investor, and DPA overlays may require stronger scores
Minimum Down Payment	3.5%
Upfront Mortgage Insurance	1.75% of loan amount (can be financed)
Annual MIP	Often ~0.55% on many new 30-year FHA loans; confirm by case type
Max DTI (front / back)	31% / 43% standard · up to 40%/50% manual UW
2026 One-Unit FHA Floor	$541,287 for most lower-cost areas
Co-Signer	Non-occupant allowed
Down Payment Source	Gift, grant, DPA programs OK

Stack FHA With Down Payment Assistance

FHA's low down payment gets even lower when you combine it with Texas DPA programs. Many RGV buyers close with little to nothing out of pocket.

TSAHC

Texas State Affordable Housing Corp offers up to 5% in down payment assistance as a grant — doesn't need to be repaid.

TDHCA / My First Texas Home

Up to 5% DPA plus a 30-year fixed rate. Available statewide including all RGV counties.

City of Brownsville DPA

Local forgivable assistance for buyers purchasing within city limits. Ask us — these funds move fast.

Let's Run Your Numbers

Tell me your credit score, income, and what you're looking to buy — I'll show you exactly what you qualify for and whether FHA or another program is your best path. No pressure, just answers.

Talk to Jorge

FHA loan guidelines are subject to lender overlays and individual qualification. Rates and programs current as of 2026. Willow Bend Mortgage Company LLC · NMLS #117371 · MLO NMLS #2523742 · Equal Housing Lender. This is not a commitment to lend.