FHA Loans With 3.5% Down, Done Right.
FHA loans open the door for buyers with smaller down payments or credit that’s still a work in progress. As an independent brokerage licensed in Texas, Colorado, and Florida, The Loan Nerd shops FHA rates across dozens of wholesale lenders — so you see real options, not one bank’s menu.
HoustonDallasAustinSan AntonioDenverColorado SpringsMiamiTampaOrlandoAnd Beyond
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures the loan, lenders can approve borrowers who might not fit conventional guidelines — smaller down payments, lower credit scores, and higher debt-to-income ratios, evaluated case by case.
The trade-off is mortgage insurance: an upfront premium of 1.75% (usually rolled into the loan) plus an annual premium paid monthly. For many buyers, that cost is well worth it — FHA rates are often lower than conventional rates for the same credit profile, and the path to homeownership opens years sooner.
Here’s where a broker earns their keep: FHA guidelines set the floor, but every lender layers its own rules on top. One lender may decline a 580 score that another approves. We shop dozens of wholesale lenders and match your file to the one whose guidelines fit — not the other way around.
Who FHA Loans
Work Best For
FHA isn’t just a first-time buyer program — it’s a flexible tool for anyone whose situation fits. These are the borrowers we most often place in FHA loans.
First-Time Homebuyers
A 3.5% down payment — which can be 100% gift funds from family — plus flexible credit guidelines make FHA the most common starting point for first homes. Down payment assistance programs can often be paired with FHA, subject to program qualification.
Buyers Rebuilding Credit
FHA guidelines allow scores conventional loans often can’t — 580 for the minimum down payment, and 500–579 with 10% down. Past credit events like collections or a prior bankruptcy are evaluated case by case, with required waiting periods.
2–4 Unit Owner-Occupants
Live in one unit and rent the others — FHA allows multifamily purchases with the same 3.5% down. 2026 limits in standard-cost counties run up to $693,050 for two units and $1,041,125 for four, with higher caps in high-cost areas.
Current FHA Homeowners
Already in an FHA loan? The FHA Streamline Refinance can lower your rate with reduced documentation and no new appraisal in many cases. When your equity grows, we’ll also check whether refinancing to conventional could remove mortgage insurance.
2026 FHA Loan Limits in Texas, Colorado & Florida
FHA limits are set county by county each year. For 2026, most counties in all three of our states use the national “floor” of $541,287 for a single-family home — including the Houston, Dallas, San Antonio, Tampa, and Orlando metros.
Colorado is the big exception: the Denver metro’s limit is $862,500, and resort counties like Eagle, Garfield, and Pitkin sit at the national ceiling of $1,249,125. A handful of coastal Florida counties also run above the floor. If your county isn’t listed here, we’ll confirm your exact limit when we review your scenario.
Buying above your county’s FHA limit doesn’t end the conversation — it usually just means comparing a conventional loan (up to $832,750 in most counties) or other programs. That comparison is exactly what we do every day.
FHA Loan FAQs
Questions we hear from FHA borrowers every day.
Ready to See If FHA Fits?
Start with a no-obligation pre-qualification. We’ll review your credit, compare FHA against conventional side by side, and tell you exactly where you stand — no pressure, no runaround.