What Credit Score Do You Need to Buy a House in Texas? (2026)

The quick answer: it depends on the loan. FHA guidelines allow 3.5% down with a 580 score (and 10% down from 500 to 579). VA doesn't set a minimum score itself, but lenders set their own. Fannie Mae removed its hard 620 minimum for loans run through Desktop Underwriter in November 2025, though lenders can still have their own floors. Texas state down payment assistance programs typically want at least 620. In real life, the higher your score, the better your pricing and mortgage insurance.

Minimum credit scores by loan type

• FHA: 580 and up qualifies for the 3.5% minimum down payment under HUD guidelines. 500 to 579 requires 10% down. Lenders often add their own minimum on top.
• VA: the VA doesn't publish a minimum credit score. Lenders set one, and the VA requires the lender to review your overall credit and ability to repay.
• Conventional: effective for new casefiles on or after November 16, 2025, Fannie Mae no longer applies its 620 minimum score in Desktop Underwriter and relies on its own risk analysis instead. That doesn't mean every lender will approve any score. It means the automated system looks at the whole file.
• Texas down payment assistance: TSAHC lists a 620 minimum for government loans and 640 for conventional. TDHCA's program chart lists 620.

Why your score still matters even after you qualify

Qualifying and getting good terms are two different things. On conventional loans, your score affects the price of the loan and the cost of private mortgage insurance. A 680 and a 760 can both get approved and still end up with noticeably different monthly payments. On FHA, mortgage insurance doesn't move with your score the same way, which is one reason FHA can make sense for buyers still building credit. I compare both for clients when it's close.

What else lenders look at besides your score

• Debt-to-income ratio. Your monthly debts, including the new house payment, compared to your gross income.
• Payment history. Recent late payments hurt more than old ones.
• Big credit events. Bankruptcy and foreclosure come with waiting periods that differ by loan type.
• Assets and reserves. Money left over after closing makes a file stronger.

How to raise your score before you apply

1. Pull your reports for free at AnnualCreditReport.com and dispute anything that's wrong.
2. Pay down credit card balances. Utilization is one of the fastest things to move. Getting cards under about 30% of their limits helps; lower is better.
3. Don't open new credit or finance furniture while you're house hunting.
4. Don't close old cards just to "clean up." It can shorten your history and raise utilization.
5. Set up autopay on everything so nothing slips through the cracks.

One thing I'd skip: paying someone to "fix" your credit. Most of what they do you can do yourself, for free.

Does checking my rate hurt my credit?

A mortgage pre-approval uses a hard inquiry, but the credit scoring models treat multiple mortgage inquiries in a short shopping window as a single inquiry. So shop around, just keep it to a few weeks. I'd rather you compare offers than overpay.

Credit score myths I hear all the time

• "I need 20% down and a 740 to buy." No. Plenty of buyers close with less down and a lower score. It changes the cost, not always the answer.
• "Checking my own score will hurt it." Pulling your own credit is a soft inquiry and doesn't affect your score.
• "Paying off a collection always bumps my score." Not always right away. It can still help your approval, so ask before you pay anything off mid-process.
• "My co-borrower's great score cancels out mine." Lenders generally look at each borrower's scores, and the lower one often drives pricing. Sometimes leaving someone off the loan is better, sometimes it isn't. Run it both ways.

My honest take

If you're in the high 500s or low 600s, don't assume you're out. Let's look at the full picture. Sometimes a few months of paying down cards gets you into a better program, and sometimes FHA works today. Either way, you'll know exactly where you stand and what to fix.

Frequently Asked Questions

Sources

• HUD Handbook 4000.1 (FHA Single Family Housing Policy)
• VA: Purchase loan eligibility and requirements
• Fannie Mae Selling Guide Announcement SEL-2025-09 (minimum credit score change)
• TSAHC: Homes for Texas Heroes
• TDHCA: Programs at a glance
• AnnualCreditReport.com (free credit reports)

Information current as of October 2026 and subject to change. For information purposes only; this is not a commitment to lend or extend credit. All loans subject to credit approval. Keith Sullivan, NMLS# 2451429, NXT Mortgage NMLS# 1660690. Equal Housing Opportunity.