Mortgage Credit Score & Loan Options in Texas

An Educational Guide for Texas Home Buyers by Jennifer Greenfield, REALTOR®


If you’re thinking about buying a home, understanding how your credit score impacts your mortgage options is a key step. This page is designed to offer helpful, educational information — not financial or lending advice — so you can feel more confident before speaking with a licensed mortgage professional.

As a licensed Texas REALTOR®, I help buyers every day who are navigating questions about loans, credit, and first-time buyer programs. I’m not a lender, but I’m here to share resources and insight that can guide you along the way.

Why Credit Score Matters

Your credit score plays a big role in how lenders view your ability to repay a loan. It’s one of the first things they check when determining whether you qualify — and what kind of mortgage terms you’ll be offered.

Generally speaking, a higher credit score can lead to:

  • ✅ Lower interest rates
  • ✅ Smaller monthly payments
  • ✅ More loan options and flexibility
  • ✅ Better chances of approval

Even if your credit isn’t perfect, don’t count yourself out. Many buyers are still able to qualify through special loan programs or by taking small steps to strengthen their score over time. Things like paying down debt, checking for credit report errors, or building consistent payment history can make a meaningful difference.

Typical Credit Score Guidelines by Loan Type

Different loan types come with different credit score expectations, and understanding those benchmarks can help you plan ahead. Here's a general overview of what most lenders look for:

FHA loans are one of the most flexible options, especially for first-time buyers or those with lower credit. A score of 580 or higher typically qualifies you for just 3.5% down, while scores between 500–579 may still be eligible with 10% down.

Conventional loans usually require a minimum credit score of 620, and they’re best suited for buyers with strong credit and a solid income history. These loans may also offer lower interest rates for those with excellent scores.

VA loans, available to eligible veterans and military families, don’t technically require a minimum score by law — but most lenders look for at least 580 to 620 or higher. These loans offer zero down payment, making them an excellent benefit for those who qualify.

USDA loans, which are designed for homes in designated rural areas, typically require a credit score of 640 or above and have income limits depending on your location and household size.

⚠️ This information is for educational purposes only. Individual lenders may set their own credit requirements and program terms.

Other Factors Lenders Consider

Your credit score is just one part of the approval puzzle.

Lenders also look at:

📊Debt-to-income ratio (DTI) | 💼Income and job stability | 🏦Down payment and savings history

This is why it’s smart to connect with a trusted lender early in your journey — even if you're not quite ready to buy.

Have questions about mortgages, credit scores, or buying a home in Texas? I’d love to be your REALTOR®.

📞 972-978-0127
📧 JGreenfield.tx@gmail.com