A family looking for a home in Fort Worth once shared their dilemma about whether to choose an FHA loan or a conventional loan. When comparing the two loans side by side, it becomes clear that the answer largely depends on credit score and down payment capability.

The recent median home price in Fort Worth ranges from $280,000 to $340,000 according to various sources. As of March 2026, the median price was $337,250, while the selling price in July was around $336,000, and other estimates show it could be between $283,000 and $284,000. There are variations, but generally, it can be considered to be around $300,000.

A conventional loan is a product offered by private lenders that follows the guidelines set by Fannie Mae and Freddie Mac, without government backing. In simple terms, it favors those with good credit scores and some savings. If your score is above 680, the interest rates improve significantly in the 10% to 20% down payment range, and if your equity exceeds 20%, you can eliminate private mortgage insurance (PMI).

An FHA loan is a product backed by the Federal Housing Administration (HUD), which essentially provides a lower barrier for first-time homebuyers who may not have a strong credit score or sufficient savings. If your score is above 580, you can enter with a 3.5% down payment, and those with scores between 500 and 579 can qualify with a 10% down payment. However, keep in mind that if your down payment is less than 10%, mortgage insurance premiums (MIP) will apply throughout the loan term.

Fort Worth is home to the NAS JRB Fort Worth naval air station, so there are also many families utilizing VA loans. Active duty service members, veterans, and some spouses can proceed without a down payment and without PMI, making it an advantageous option. However, do not overlook the funding fee, which ranges from 1.25% to 3.3% of the loan amount.

Within Fort Worth, areas near TCU or Westover Hills with good school districts tend to have much higher median prices, while some areas in the east or south are lower. The situation can vary even within the same city, so while you can refer to GreatSchools or state education department ratings for school districts, remember that boundaries change frequently, and it's best to verify the assigned school for a specific address before purchasing.

This price range is comfortably below the 2026 FHFA conforming loan limit of $832,750, so Tarrant County is not considered a high-cost area, meaning jumbo loans are not often a concern. Ultimately, you can choose between conventional, FHA, and if you have military experience, VA loans based on your credit score and down payment capability.

If you are moving from another state, it's wise to familiarize yourself with Texas's property tax rate structure. Tax and insurance conditions can vary by county, so be sure to check again before purchasing. When moving from California or the East Coast, even though the property tax rate may seem high, the lower home prices often result in a reduced actual monthly burden, so it's important not to judge solely based on your previous residence but to recalculate.

For investors looking for rental income, it's important to approach with a conventional loan, preparing a down payment in the range of 15% to 25%. FHA and VA loans have owner-occupancy requirements, so they cannot be used for investment purchases. Fort Worth has a steady rental demand, but it cannot be assumed that prices will always rise, so it's prudent to consider vacancy rates and management costs as well.

When comparing loan terms, it's advisable to look at not only interest rates but also closing costs and the time required for pre-approval. Fort Worth has a relatively fast turnover of listings, so obtaining pre-approval in advance can give you an advantageous position in offer competitions.

This article is not investment or legal advice, and it is recommended to consult with a professional before proceeding.