"What's my credit score need to be?" is the very first question most Denton-area buyers ask before they've even looked at a single listing — and the honest answer is: it depends which loan program you're aiming for. A 580 opens different doors than a 620, and a 620 opens different doors than a 700. Here's exactly what each tier qualifies you for in Texas in 2026, and what moving up one tier is actually worth.
Credit Score Tiers and What They Qualify For
| Credit Score | What It Typically Qualifies For |
|---|---|
| 500-579 | FHA only, with 10% down, through select lenders — the hardest tier to get approved in |
| 580-619 | FHA with 3.5% down; VA often workable; USDA unlikely yet |
| 620-639 | Conventional becomes available; FHA and VA pricing improves; USDA becomes possible |
| 640-659 | USDA comfortably qualifies; Conventional PMI pricing improves |
| 660-699 | Stronger Conventional pricing tier; better rate across all programs |
| 700+ | Best available rates and pricing across FHA, Conventional, VA, and USDA |
Ranges reflect common 2026 lender guidelines. Individual lender overlays, debt-to-income ratio, down payment, and loan amount also affect approval and pricing. I can confirm exactly where your score places you.
FHA: The Most Forgiving Program
FHA loans remain the most accessible program for buyers rebuilding credit. A 580 score qualifies for the standard 3.5% down payment. Scores between 500 and 579 can sometimes still qualify with 10% down, though many individual lenders set their own higher minimum regardless of what FHA officially allows — which is why working with the right lender matters as much as the number itself.
Conventional: 620 Is the Real Floor
Conventional loans generally require a minimum 620 credit score. Below that, Conventional simply isn't an option — FHA becomes the default path. Above 620, Conventional pricing improves steadily; buyers in the 740+ range typically see the lowest rates and cheapest private mortgage insurance available in the market.
VA and USDA: Program-Specific Flexibility
VA loans have no official government-set minimum credit score, but most VA lenders set an internal overlay somewhere between 580 and 620. USDA loans typically want a 640 or higher, since USDA underwriting leans more heavily on automated approval systems that favor stronger credit files.
What a Higher Score Is Actually Worth
Credit score doesn't just determine whether you qualify — it determines your interest rate through what's called risk-based pricing. On the same loan amount, a borrower with a 620 score can pay a meaningfully higher rate than a borrower with a 760 score, adding up to tens of thousands of dollars over a 30-year term. Even a 20 to 40 point improvement before you apply — paying down a card balance, disputing an error, or waiting out a recent late payment — can shift you into a better pricing tier. See my guide on how credit scores shape your mortgage options for the full breakdown.
Three Fast Ways to Improve Your Score Before Applying
- Pay down credit card balances — credit utilization is one of the fastest-moving factors in your score, sometimes improving within one billing cycle
- Don't open new credit — new accounts and inquiries can temporarily lower your score right when you need it highest
- Dispute verified errors — a wrongly reported late payment or incorrect balance can be pulling your score down for no legitimate reason
What I Recommend
Don't guess where your score puts you — pull your credit and let me tell you exactly which programs you qualify for today, and which quick moves could bump you into a better pricing tier before you apply. If you're not quite there yet, I'll build a realistic timeline instead of just saying no. Call or text me at 469-545-7180, or start with my credit improvement guide.
Frequently Asked Questions
What credit score do I need to buy a house in Texas?
You can qualify for an FHA loan in Texas with a credit score as low as 580 (3.5% down) or even 500-579 with 10% down through certain lenders. Conventional loans typically require 620 or higher. VA loans have no official government minimum, though most lenders look for 580-620. USDA loans generally want 640+. I can review your specific score and find the right program — call or text me at 469-545-7180.
Is 620 a good credit score to buy a house?
Yes. A 620 credit score meets the minimum for most Conventional loan programs and easily clears FHA, VA, and USDA minimums. You likely won't get the very best advertised rate, which typically requires 740 or higher, but 620 is a fully bankable score for a Texas home purchase in 2026.
Can I buy a house in Texas with a 500 credit score?
It's difficult but not always impossible. Some FHA lenders will go down to a 500 score with 10% down, though many lenders set their own higher overlays and won't go below 580 regardless of FHA's official floor. If your score is in the 500s, the fastest path to approval is usually a short credit-building plan rather than searching for a lender willing to take the risk. Visit bondmortgagesolutions.com and I can map out that plan with you.
Does my credit score affect my mortgage interest rate?
Yes, significantly. Lenders use risk-based pricing, so a 620 score and a 760 score on the identical loan can differ by half a percent or more in rate — a meaningful difference over a 30-year term. Even a 20-40 point improvement before you apply can lower your rate. I can show you exactly how much a credit improvement would save on your specific loan amount — call or text me at 469-545-7180.
Want to know exactly where your score puts you?
I'm Bond Peter Njoku (NMLS #2670329), and I review your credit and show you which loan programs you qualify for today — plus quick wins to improve your pricing. Text or call me at 469-545-7180.