FHA Loans

The Federal Housing Administration (FHA) was established as part of the National Housing Act of 1934 and was tasked with the goal of improving the housing market. To do so, the FHA insures home loans offered by approved lenders, allowing those lenders to offer mortgages to a wider range of buyers with less risk.

Lenders are protected from borrower default and, in turn, can offer great rates to buyers with less than perfect credit or limited down payment availability. FHA loans can be used for home purchases, refinances, and even special renovation projects. The McDaniel Mortgage Group offers great rates and terms on FHA loans throughout Dallas and the neighboring Texas areas.


  • Credit Score – A minimum credit score of 500. This minimum may be higher, depending on the lender
  • Down Payment – 3.5% of the purchase price with a credit score of at least 580. Borrowers may be able to qualify with a lower credit score if a larger down payment of at least 10% can be made
  • Debt-to-Income Requirements – A debt-to-income (DTI) ratio of 43% or less. A DTI ratio of up to 50% may be approved under special circumstances
  • Property Requirements – All properties must meet certain safety, security, and soundness (structural integrity) requirements

Loan limits vary from one county to the next. In Dallas County, Texas, FHA loans range from $563,500 for a single-unit home, up to $1,083.650 for a four-plex.