What Is the Minimum Credit Score for a Conventional Loan in Texas?

If you're preparing to buy a home in Texas, one of the first questions you'll run into is about credit. Specifically, what credit score do you need to qualify for a conventional loan?

According to Bethany Ashby of easttexaslending.com/home, most conventional loans in Texas follow national standards set by Fannie Mae and Freddie Mac. That means the general credit score requirements are consistent across the state, though your exact score needs may vary based on other factors like your down payment or debt load.

What’s the Minimum Credit Score?

In most cases, the minimum credit score for a conventional loan is 620. However, this is only the baseline. Many lenders may require a higher score depending on:

• Your debt-to-income (DTI) ratio

• How much you’re putting down

• Whether you're a first-time homebuyer

• The loan’s risk profile

The higher your credit score, the more favorable your interest rate and loan terms are likely to be. A score of 740 or higher generally opens the door to the best pricing on conventional loans.

Why Credit Score Matters

Your credit score reflects how well you’ve managed past debts, and lenders use it to assess your risk as a borrower. For conventional loans, your score influences:

• Loan approval or denial

• Required down payment amount

• Interest rate

• Private mortgage insurance (PMI) costs

Bethany emphasizes that even a small bump in your score can make a meaningful difference in your monthly payment. For example, improving your score from 660 to 700 could reduce your PMI cost or help you qualify for a lower interest rate.

How to Improve Your Score Before Applying

If your score is below 620 or you’re aiming for better loan terms, here are a few steps to take:

• Pay down credit card balances

• Avoid new credit applications

• Make on-time payments for all existing accounts

• Dispute any errors on your credit report

• Keep old credit accounts open to maintain credit history

Bethany Ashby often works with clients in the pre-approval stage to review their credit and create a custom plan to boost scores when needed.

What If My Score Isn’t High Enough?

If you fall short of the minimum credit score for a conventional loan, there may still be options. FHA loans, for example, allow for lower credit thresholds. However, your best path depends on your full financial profile and homebuying goals.

Even if you're not ready to buy today, Bethany can help you build a step-by-step plan so you’re ready when the time is right.

Final Thoughts

The minimum credit score to qualify for a conventional loan in Texas is typically 620, but your ideal target may be higher depending on your financial situation. A stronger score often leads to better rates, fewer fees, and more buying power.

If you want to check where you stand and what loan options are available, connect with Bethany Ashby at easttexaslending.com/home. She can help you review your credit, explore loan programs, and build a confident path toward homeownership.

Sources:
FannieMae.com, FreddieMac.com, Experian.com, NAR.realtor