What credit score do I need to buy a home in Texas? Most loan programs require a minimum credit score between 580 and 620 depending on the program — FHA loans allow scores as low as 580 (or 500 with a larger down payment), while conventional loans and most Texas down payment assistance programs typically want at least 620.
Your Score Affects More Than Approval
Your credit score doesn’t just determine whether you qualify for a mortgage — it directly affects your interest rate, which affects your monthly payment for the life of the loan. A higher score can mean tens of thousands of dollars in interest savings over a 30-year mortgage, so it’s worth understanding where you stand before you start house hunting.
Minimum Scores by Loan Type
FHA loans: 580 minimum for the standard 3.5% down payment option; some lenders will go as low as 500 with a 10% down payment.
Conventional loans: Typically 620 minimum, though the best rates usually go to buyers with scores of 740 and above.
VA loans: No official minimum set by the VA, but most lenders require at least 580–620 in practice.
Texas down payment assistance programs (TDHCA, TSAHC): Most require a minimum score of 620, so if you’re planning to use assistance, this is the number to target.
What If Your Score Isn’t There Yet?
If your credit score falls below what you need, you have options:
Wait and improve it. Even a few months of on-time payments and lower credit utilization can move your score meaningfully.
Look at FHA loans. They’re specifically designed to be more accessible to buyers with lower scores or thinner credit files.
Add a co-borrower. A co-borrower with stronger credit can sometimes help you qualify for better terms.
Practical Ways to Improve Your Score Before Applying
Pay down credit card balances — credit utilization (how much of your available credit you’re using) is one of the biggest factors in your score.
Don’t close old credit accounts — length of credit history matters, and closing accounts can shorten it.
Dispute any errors on your report — pull your reports from all three bureaus and check for mistakes before applying.
Avoid new credit applications — opening new accounts or taking on new debt right before applying can lower your score and raise red flags with underwriters.
Keep making all payments on time — payment history is the single largest factor in your score.
How Much Does Your Score Actually Affect Your Rate?
Lenders use tiered pricing based on credit score ranges, meaning even a jump from the 660–679 range to the 700–719 range can noticeably lower your rate. This is one of the most overlooked reasons it’s worth spending a few months improving your credit before applying, if your timeline allows it.
FAQ
Can I buy a house with a 580 credit score? Yes, an FHA loan allows a minimum score of 580 with a 3.5% down payment, and some lenders go as low as 500 with a larger down payment.
Will checking my own credit score hurt it? No — checking your own credit report or score is a “soft inquiry” and does not affect your score. Only hard inquiries from lenders during the application process have a small impact.
How long does it take to improve a credit score before buying? It varies, but meaningful improvement is often possible within 3–6 months through on-time payments and lower credit utilization, especially if there are errors to dispute or high balances to pay down.
Not Sure Where Your Credit Stands?
I can connect you with lenders who’ll review your credit and walk you through realistic options — whether you’re ready now or building toward it. Call or text Ashley at 817-791-5574.
Ashley Galica, Realtor, DFW’s Finest Real Estate Group at ARC Realty DFW.
