FHA Loan Calculator Texas (Self-Employed)

Self-employed Texas borrowers face three extra steps that salaried buyers skip: a 2-year self-employment history check, variable-income averaging for the debt-to-income ratio, and Texas-specific county loan limits that vary widely. This calculator handles all three.

What This Calculator Does

Select your Texas county (76 counties, each with its own 2026 FHA limit), enter the home price, down payment, and credit score band. Then provide self-employment specifics:

• Years of self-employment (1, 2, 3+)
• Average monthly net income (after business expenses)
• Add-back categories (depreciation, mileage, home office)

The calculator returns:

• Max loan amount for your county and credit band
• Estimated P&I, MIP, taxes, insurance monthly payment
• DTI ratio under FHA’s 43% front-end / 56.9% back-end rules
• Documentation checklist specific to your self-employment situation

2026 Texas County Loan Limits

The calculator defaults to your county when you start typing. If you do not know your county, the calculator falls back to the most common limit ($524,225) and flags the assumption.

Self-Employment: 2-Year Rule

FHA lenders look at the most recent two years of tax returns (Form 1040 + Schedule C). If both years show positive net income from the same business, you generally qualify. Exceptions:

• 1-year history accepted if the prior year was a related W-2 job (e.g. you were a salaried engineer and started your own firm)
• 3-year average if your income varies widely year to year (the lender averages the two years and uses the lower of: average, or most recent year)

The calculator lets you enter 1, 2, or 3 years of net income. It then computes the qualifying income as the lower of (avg, most recent) per FHA 4000.1.

Add-Backs That Boost Qualifying Income

Self-employed borrowers can add back non-cash expenses to their qualifying income:

• Depreciation (non-cash, add back fully)
• Mileage (non-cash, add back fully)
• Home office deduction (non-cash, add back fully)
• One-time business expenses (must be documented, add back with lender approval)

The calculator accepts these as line items. It shows the net qualifying income after add-backs, which is what the lender uses for the DTI calculation.

MIP (Mortgage Insurance Premium) for 2026

FHA MIP rates for 2026:

• Loan term > 15 years: 0.55% annual MIP
• Loan term ≤ 15 years: 0.40% annual MIP
• Down payment < 10%: MIP is for the life of the loan (cannot be cancelled)
• Down payment ≥ 10%: MIP cancels after 11 years

The calculator applies these rules automatically. The MIP line item is shown separately from P&I, taxes, and insurance.

Example: $450,000 Home in Harris County, 10% Down

• Home price: $450,000
• Down payment (10%): $45,000
• Loan amount: $405,000
• 30-year fixed at 6.875% (Texas FHA avg, mid-2026): P&I ≈ $2,660/month
• MIP (0.55% annual, 11-year cancel): $185/month
• Property taxes (Texas avg 2.3%): $863/month
• Homeowners insurance: ~$200/month
• Total monthly: ~$3,908
• Required qualifying income (43% back-end): ~$109,000/year

The calculator generates this exact breakdown for your inputs.

Limitations

The calculator uses mid-2026 rates. Mortgage rates change weekly. For a final pre-approval, get a quote from at least three Texas FHA-approved lenders. The calculator also assumes single-family primary residence; investment and 2-4 unit properties have different MIP rules.

Related Tools

• Mortgage Calculator — conventional loans
• Loan Calculator — general amortization
• Tax Calculator — Schedule C estimated tax