What Property Types Qualify for FHA Financing in East Texas?

FHA loans offer a path to homeownership for many East Texas buyers by requiring lower down payments and more flexible credit guidelines. But while the loan terms are borrower-friendly, the Federal Housing Administration does have specific rules about the types of properties that can be financed.

Bethany Ashby explains on easttexaslending.com/home that one of the most common surprises for buyers is discovering that not all homes are FHA eligible. Understanding the qualifying property types early in the process helps avoid wasted time and missed opportunities.

Eligible Property Types for FHA Loans

In East Texas markets like Tyler, Longview, and surrounding areas, FHA loans can be used for a range of residential property types — as long as the home will be your primary residence and meets FHA condition standards.

1. Single-Family Homes

The most common type of FHA-eligible property is a single-family home. This includes detached houses, which must meet minimum safety, structural, and livability standards determined during the FHA appraisal. These homes are ideal for first-time buyers and growing families.

2. Townhomes

Townhouses or row homes can also qualify for FHA financing, provided each unit is individually owned and has its own utility access. The home must meet the same FHA standards as a traditional house.

3. Condominiums (If Approved)

FHA does finance condos, but only in approved condominium communities. The entire project must meet FHA guidelines regarding owner occupancy rates, financial stability, and management. If the condo development is not approved, the unit won’t be eligible for FHA financing.

4. Multi-Unit Homes (2–4 Units)

FHA loans can be used to purchase properties with up to four units. However, you must live in one of the units as your primary residence. This option is popular for buyers who want to offset their mortgage with rental income from the other units while still qualifying under FHA rules.

5. Manufactured Homes

Manufactured or mobile homes can be eligible for FHA loans if they are permanently affixed to a foundation and meet specific HUD construction and safety standards. The home must be classified as real property (not personal property) and cannot be located on leased land unless it meets long-term lease criteria.

Property Types That Are Not Eligible

Some homes and property types will not qualify for FHA financing, including:

• Investment properties (unless the owner lives on-site in a multi-unit property)

• Vacation or second homes

• Condos in non-approved communities

• Fixer-uppers with major safety or structural issues (unless using a rehab-specific FHA loan)

• Homes that do not meet minimum property standards

FHA loans are meant to provide stable, affordable housing, which is why the home must be safe, structurally sound, and used as a primary residence.

Final Thoughts

FHA loans can be a powerful tool for buying a home in East Texas, but understanding which properties qualify is essential. From single-family homes to certain multi-unit and manufactured properties, buyers have several options — but only if those homes meet FHA criteria.

Bethany Ashby helps East Texas buyers navigate these requirements and make confident decisions when choosing properties that will work with FHA financing. To learn more or start your approval process, visit easttexaslending.com/home.

Sources:

HUD.gov, FHA Handbook, NAR.realtor, FreddieMac.com, Investopedia.com