2026 FHA Loan Limits in Texas

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FHA loan limits are set annually by the Federal Housing Administration and determined at the county level based on median home prices. These limits vary by Metropolitan Statistical Area (MSA) and are categorized by property type: 

• One-unit 
• Two-unit 
• Three-unit 
• Four-unit 

For 2025, FHA loan limits were updated on November 26, 2024, in accordance with the National Housing Act. FHA establishes:

• A nationwide “floor” (low-cost areas) 
• A nationwide “ceiling” (high-cost areas) 

For high-cost areas, the maximum FHA loan limit for a four-unit property can reach $2,326,875.

Plano and McKinney are located in Collin County, which shares the same FHA loan limits as Dallas and Denton counties for 2025.

• One-unit property limit: $563,500 
• Applies to: 
  • Plano 
  • McKinney 
  • Allen 
  • Frisco 
  • Richardson (Collin/Dallas portions) 

These limits are higher than the national floor due to stronger home price levels in the Dallas–Fort Worth metro area.

FHA loan limits apply to the loan amount, not the purchase price.

Because FHA allows a minimum 3.5% down payment, the maximum purchase price is slightly higher than the loan limit.

Example: 

Collin County (Plano, McKinney)
Loan Limit: $563,500
Max Purchase Price: ~$583,900

Dallas County
Loan Limit: $563,500
Max Purchase Price: ~$583,900

Denton County
Loan Limit: $563,500
Max Purchase Price: ~$583,900

How this works:

• FHA finances up to 96.5% of the purchase price 
• Purchase price ≈ Loan Limit ÷ 0.965 

FHA finances up to 96.5% of the purchase price, which allows the maximum home price to exceed the loan limit slightly with a minimum down payment. This means many homes in Plano and McKinney fall within FHA financing range without requiring a larger down payment.

 As home prices approach FHA limits in Plano and McKinney, some buyers compare FHA and conventional financing options based on total cost, down payment, and long-term mortgage insurance. 

The annual FHA loan limit adjustment is designed to reflect changes in housing prices and maintain access to financing for low- to moderate-income borrowers.

With the 2025 update:

• The nationwide floor increased to $498,257 for a one-unit property 
• Higher-cost areas receive proportionally higher limits based on local median home values 

This adjustment allows more homebuyers to remain within FHA financing parameters, particularly in markets where home prices have increased.

In areas like the Dallas–Fort Worth region, FHA loan limits are higher than the national floor due to local home values. This expands access to FHA financing for borrowers who may prefer:

• Lower down payment requirements (as low as 3.5%) 
• Flexible credit qualification standards 

FHA loan limits directly impact how much a borrower can finance using an FHA-insured mortgage.

When home prices approach or exceed FHA limits:

• Borrowers may need a larger down payment to stay within FHA guidelines 
• Or consider alternative financing options 

When limits increase:

• More homes fall within FHA eligibility 
• Borrowers can maintain lower down payment structures 

FHA guidelines are designed to support borrowers who may have:

• Limited credit history 
• Higher debt-to-income ratios 
• Smaller down payment capacity 

FHA loan limits are generally lower than conforming conventional loan limits set by Federal Housing Finance Agency.

As home prices increase toward FHA limits, borrowers often evaluate both options:

FHA Advantages

• Lower minimum down payment 
• More flexible qualification standards 

Conventional Advantages

• Potentially lower long-term costs depending on credit profile 
• No upfront mortgage insurance premium 

The choice between FHA and conventional financing depends on the borrower’s financial profile and the purchase price relative to loan limits.

FHA loan limits also apply to refinance transactions, including:

• Rate-and-term refinances 
• Cash-out refinances 
• FHA Streamline refinances 

With higher loan limits:

• More borrowers may qualify to refinance into an FHA-insured loan 
• Increased limits may allow greater access to available home equity within FHA guidelines 

FHA refinance programs are often used by borrowers seeking:

• Payment reduction 
• Qualification flexibility 
• Simplified underwriting (in the case of streamline refinances) 

• FHA loan limits are updated annually based on local home prices 
• Limits vary by county and property type 
• Higher limits increase access to FHA financing 
• Borrowers should compare FHA and conventional options based on their full financial picture 

To view current limits, refer to the official HUD lookup tool provided by the U.S. Department of Housing and Urban Development.

FHA loans include mortgage insurance requirements, which affect total loan cost. Borrowers should evaluate:

• Upfront Mortgage Insurance Premium (UFMIP) 
• Annual Mortgage Insurance Premium (MIP) 

These costs should be considered alongside interest rate and qualification benefits.