If you’re dreaming about buying a home in Texas but wondering if your credit score will hold you back, you’re not alone. It’s one of the most common questions we hear from buyers—especially first-timers:
“What credit score do I actually need to buy a house?”
The good news? You don’t need perfect credit to become a homeowner in Texas. But your score does play a big role in what type of loan you qualify for, how much you can borrow, and what kind of interest rate you’ll get.
Here’s what you need to know about credit requirements, loan options, and how to strengthen your position before applying.
What’s the Minimum Credit Score to Buy a Home in Texas?
It depends on the type of loan you’re using. Each loan program has its own credit requirements.
| Loan Type | Minimum Credit Score |
| FHA Loan | 580 (3.5% down) |
| VA Loan | 580–620 (no down payment required) |
| Conventional Loan | 620 minimum |
| USDA Loan | 640 (0% down in eligible rural areas) |
| Jumbo Loan | 680–700+ |
📍 While these are general minimums, lenders may have stricter requirements based on your debt, income, and loan amount.
What’s a Good Credit Score for Buying a Home?
A higher credit score doesn’t just help you qualify—it can save you thousands in interest over the life of your loan.
Here’s how lenders typically categorize scores:
- 740 and up: Excellent – Best rates and terms
- 700–739: Good – Strong approval chances and competitive rates
- 660–699: Fair – May qualify, but not the best rates
- 620–659: Borderline – You may need a larger down payment or higher rate
- Below 620: Limited options – FHA may be your best bet
📈 The higher your score, the more flexibility you’ll have when choosing your loan type, down payment, and monthly payment.
Why Your Credit Score Matters
Your credit score helps lenders determine how much of a risk you pose as a borrower. It directly affects:
- Loan approval (whether you get the green light or not)
- Interest rate (higher score = lower rate)
- Loan amount (how much the lender is willing to offer)
- Down payment requirements
- Mortgage insurance costs
Even a small change in your credit score can shift your monthly payment by hundreds of dollars.
What If Your Credit Score Is Lower Than You’d Like?
Don’t panic—many buyers qualify for loans even if their score isn’t perfect. And there are steps you can take to improve your score over time:
- Pay down existing credit card balances
- Make on-time payments every month
- Avoid applying for new credit before buying
- Dispute any errors on your credit report
- Keep old accounts open to build length of credit history
Lenders typically look at your middle credit score from the three major bureaus (Equifax, Experian, and TransUnion), so consistency is key.
Can You Still Buy a Home with Less-than-Perfect Credit?
Yes—and many people do.
Programs like FHA, VA, and USDA loans are designed to help buyers with lower credit scores, smaller down payments, or unique financial circumstances become homeowners.
The important thing is to work with a knowledgeable lender who can evaluate your full financial picture—not just your credit score—and guide you to the right loan option.
Ready to Buy in Texas? Start with Your Score.
Before you fall in love with a listing, it’s smart to know where you stand. Getting pre-approved helps you understand what you can afford, strengthens your offer, and ensures you’re ready to act when the right home comes along.
Not sure where your credit stands—or how to get started? At Your Home Free – Team Nelson, we partner with experienced local lenders who can help you review your credit, explore your options, and create a clear path to homeownership. Let’s talk about where you are now—and how we can help you get to where you want to be.