FHA Loans in San Antonio: The 3.5% Down Math and the $557,750 Limit

The 2026 FHA numbers San Antonio buyers should know

HUD set Bexar County's 2026 FHA loan limit at $557,750 for a one-unit home, the same ceiling as 2025 and above the national FHA floor of $541,287, so the limit does not bind for nearly any San Antonio-area purchase through the mid-$500,000s. The minimum down payment is 3.5% with a credit score of 580 or higher, and 10% below that. On the recent median near $299,000, 3.5% is about $10,465; at $375,000 it is $13,125; at $450,000 it is $15,750. That 3.5% door is the entire reason FHA remains the classic first-time buyer program, including for buyers pairing it with Texas down payment assistance, which in many cases can cover the requirement entirely.

The mortgage insurance is the fine print

FHA charges two layers of mortgage insurance. The upfront premium is 1.75% of the base loan amount, so $5,250 on a $300,000 loan, and it is almost always financed into the loan rather than paid in cash. The annual premium runs 0.15% to 0.75% depending on the loan, with the common San Antonio cases at 0.55% for a 30-year loan with less than 5% down and 0.50% for 5% to 10% down. On a $300,000 balance that is roughly $137 a month at 0.55%, declining slowly as the balance drops. The part most buyers miss: with less than 10% down, FHA's annual premium lasts the life of the loan. It does not fall off at 20% equity the way conventional PMI does.

That distinction, more than the rate, is the real cost of choosing FHA.

FHA versus conventional at the same purchase

Conventional private mortgage insurance typically costs about 0.46% to 1.5% of the loan amount per year depending on credit score and down payment, per the Urban Institute's housing research, and it cancels when you reach 20% equity, automatically at 22%, or earlier if you request it at the right moment. FHA's annual premium is often cheaper per month than PMI for buyers with credit below 700, which is the trade's real shape: FHA gets you in with less down and often a lower monthly insurance bill up front, and conventional wins over the long run if you build equity quickly, because PMI eventually disappears and FHA's does not. With 30-year rates around 7.3% in October 2026, the monthly difference between the two paths on a $300,000 purchase is usually a matter of a couple of hundred dollars, so the deciding question is how long you plan to keep the loan and how fast you expect your payments and appreciation to carry you to 20% equity.

• The buying guide: from pre-approval to closing
• San Antonio down payment assistance: what is out there in 2026

Where FHA makes the most sense in San Antonio

• First-time buyers with a solid monthly payment but not a large down payment: at 3.5% plus seller concessions of up to 6% of the price, most of the closing costs can be covered by the seller side of the table.
• Buyers with credit scores in the 580 to 660 range, where FHA's insurance pricing is often more forgiving than conventional PMI tiers.
• Buyers pairing FHA with Texas down payment assistance programs, which routinely fund the 3.5% requirement.
• Buyers who want a true 30-year fixed with the lowest possible down payment and are comfortable paying mortgage insurance for years rather than months.
• Relocating buyers who want to conserve cash for the move, furniture, and a reserve after closing.

The fine print to plan around

• The 1.75% upfront premium gets financed, so your loan amount and your monthly payment start slightly higher than the sales price math suggests.
• The property must meet FHA minimum property standards, and an FHA appraiser assigned to the loan sets the value, not the seller's price.
• Condos must be on the FHA-approved list, and many San Antonio condo buildings are not, so check the building before you fall for the unit.
• Some sellers still hesitate at FHA offers out of habit, but in 2026's balanced San Antonio market, with inventory near six months, well-priced homes accept them.
• FHA is assumable: if rates rise again, a future buyer can take over your low-rate FHA loan, a quiet resale advantage no conventional loan offers.

Frequently asked questions