FHA Loans in
El Paso
The most popular loan for first-time buyers. Just 3.5% down, flexible credit requirements, and loan limits that cover most El Paso homes. Get started with a licensed broker who knows the local market.
Requirements
FHA Loan Basics
FHA loans are insured by the Federal Housing Administration, making lenders more willing to approve borrowers with lower credit scores and smaller down payments.
3.5% Down Payment
FHA loans require just 3.5% down with a credit score of 580 or higher. On a $250,000 El Paso home, that is only $8,750 — and it can come from savings, gift funds from family, or down payment assistance programs. With a score between 500 and 579, a 10% down payment is required.
Flexible Credit Scores
FHA accepts credit scores as low as 500, though most El Paso lenders set their minimum at 580 for the 3.5% down option. This makes FHA ideal for buyers rebuilding credit, recent graduates, or anyone without a long credit history.
Debt-to-Income Ratio
FHA allows a back-end DTI of up to 43%, and in some cases up to 50% with compensating factors like cash reserves or minimal payment shock. This is more generous than conventional loans, which typically cap at 43%.
Mortgage Insurance (MIP)
FHA loans require an upfront MIP of 1.75% of the loan amount (rolled into the loan) plus an annual MIP of 0.55% for most borrowers. On a $250,000 loan, that is roughly $115/month. MIP remains for the life of the loan unless you refinance into a conventional loan after reaching 20% equity.
Buyer Tips
What El Paso FHA Buyers Should Know
Local insights that can save you time, money, and headaches during the FHA process.
Down Payment Assistance
El Paso buyers may qualify for the Texas State Affordable Housing Corporation (TSAHC) My First Texas Home program, which offers up to 5% in down payment assistance as a grant or deferred second lien. The El Paso Housing Authority also offers programs for income-qualifying buyers. Combine these with FHA for minimal out-of-pocket costs.
Property Requirements
FHA has minimum property standards. The home must be your primary residence, the roof must have at least 2 years of remaining life, all mechanical systems must work, and there can be no peeling paint on pre-1978 homes. In El Paso, older homes in central neighborhoods sometimes need minor repairs before FHA approval.
2026 FHA Loan Limits
The 2026 FHA loan limit for El Paso County is $498,257 for a single-family home. This covers the vast majority of homes on the market — El Paso's median home price is well below this limit. For duplexes, triplexes, and fourplexes the limits are higher, making FHA an excellent option for house-hacking investors.
Closing Cost Strategies
FHA allows sellers to contribute up to 6% of the purchase price toward your closing costs. In El Paso's market, it is common to negotiate 2% to 3% in seller concessions. Your broker can structure the offer to maximize seller contributions, reducing your out-of-pocket to just the down payment.
The Numbers
FHA by the Numbers
3.5%
Minimum Down
With a 580+ credit score. Just $8,750 on a $250,000 home.
$498K
2026 Loan Limit
Covers the vast majority of single-family homes in El Paso.
$0
Buyer Commission
Buy through ProGen and pay zero buyer commission. Full representation included.
Common Questions
FHA Loan FAQ
Your First Home Awaits
Start Your FHA Journey
3.5% down. Flexible credit. Zero buyer commission. Talk to a licensed broker who has guided hundreds of El Paso first-time buyers to closing.
ProGen Real Estate · El Paso, TX · (915) 691-1082 · TREC #619091