Published , 3 minute read
Minimum credit scores for FHA, VA, and conventional loans in Texas plus what changed with Fannie Mae in 2025 and how your score affects your payment.
Quick answer: There's no single credit score needed to buy a house in Texas — it depends on the loan program and the lender. FHA allows scores as low as 580 with 3.5% down (and 500–579 with 10% down), VA has no official minimum but most lenders look for around 580–620, and most lenders still look for about 620 on conventional loans. A higher score usually means a lower rate and lower mortgage insurance, so even a 20–40 point improvement can save real money.
Credit score minimums by loan type
Loan type | Program guideline | What most lenders look for in practice |
|---|---|---|
FHA | 580+ for 3.5% down; 500–579 requires 10% down | Many lenders set their own floor at 580 or higher |
VA | No VA-set minimum; lender evaluates full credit picture | Commonly 580–620, depending on the lender |
Conventional (Fannie Mae / Freddie Mac) | No fixed minimum when approved through automated underwriting (change effective Nov. 16, 2025) | Most lenders still look for about 620; mortgage insurers may have their own minimums |
Jumbo (above the $832,750 conforming limit in most Texas counties) | Set by each lender | Often 680–700+ |
Note: Lenders are allowed to set stricter requirements than the program minimum. These are called "overlays," and they're why two lenders can give different answers for the same borrower.
What changed in 2025
In November 2025, Fannie Mae removed its long-standing 620 minimum credit score for loans run through its automated underwriting system, Desktop Underwriter. Instead of a hard cutoff, the system now weighs your full profile — payment history, income, debts, assets, and the property. Freddie Mac had already moved away from a hard minimum in its own system.
That doesn't mean underwriting got easier. Many lenders and mortgage insurers still use 620 as their own floor. But it does mean a score under 620 is no longer an automatic "no" for a conventional loan everywhere. It's worth having your full file reviewed rather than assuming.
How your score affects your cost
Your credit score affects more than approval. It also affects:
- Your interest rate. Conventional loan pricing is tiered by credit score, so higher scores generally get better pricing.
- Your mortgage insurance. On conventional loans with less than 20% down, private mortgage insurance costs drop as scores rise.
- Your options. Stronger scores open more programs, including some down payment assistance programs that have their own minimums.
FHA mortgage insurance is not priced by credit score the same way, which is one reason FHA can be the better fit for buyers with lower scores.
Which score do lenders use?
Mortgage lenders pull reports from the credit bureaus and use the middle score of the three. If you're buying with a co-borrower, the method depends on the loan program — some use the lower of the two middle scores, and Fannie Mae now averages them for automated approvals. The score you see in a free credit app is often a different scoring model, so it may not match what a lender sees.
If your score isn't where you want it
- Pay every bill on time from here forward. Recent history matters most.
- Pay down credit card balances. Keeping balances low relative to your limits can raise scores quickly.
- Don't close old accounts or open new ones right before applying.
- Dispute errors on your credit reports.
- Ask your loan officer for a credit review. Many can show you which specific changes would move your score the most.
FAQ
Can I buy a house in Texas with a 580 credit score? Possibly. FHA allows 3.5% down at 580, and some lenders will go that low on VA. Many lenders set higher floors, so it's worth talking to a lender who works with these programs.
Can I buy a house with a 550 credit score? FHA technically allows 500–579 with 10% down, but few lenders offer it. It's often faster to work on your score for a few months first.
Will checking my credit hurt my score? Checking your own credit doesn't. A lender's hard pull may have a small, temporary effect. Multiple mortgage inquiries within a short shopping window are typically counted as one for scoring purposes.
What is a good credit score to buy a house? Around 740 and above usually gets the best conventional pricing, but you don't need a perfect score to buy a home.
Not sure where your credit stands? Call or text Mike Tanas at 214-604-5245
This article is general education, not financial, tax or legal advice. Guidelines change and vary by lender. Talk with Mike about your own situation.