"My credit isn't good enough to buy a house."

The floor may be lower than you think. FHA (Federal Housing Administration) loans allow a minimum score of 580 for maximum financing, or 500–579 with at least 10% down (HUD Mortgagee Letter 2026-11, October 8, 2026). VA (U.S. Department of Veterans Affairs) loans have no VA-set minimum. Fannie Mae removed its minimum score from its automated underwriting in November 2025. Your lender still sets the final bar, subject to lender approval and qualification.

But here's what I really want my North Dallas buyers to understand: the minimum gets you approved. Your score helps set your PAYMENT.

What is the minimum credit score for an FHA, VA or conventional loan?

Loan type Minimum score rule Source
FHA 580+: eligible for maximum financing (3.5% down). 500–579: limited to 90% LTV (loan-to-value), so about 10% down. Under 500: not eligible HUD Mortgagee Letter 2026-11, Oct. 8, 2026
VA VA does not require a minimum. Lenders typically may want about 620 unless there's a large down payment VA Home Loan Buyer's Guide
Conventional (Fannie Mae) No minimum score in DU (Desktop Underwriter, Fannie Mae's automated underwriting system) since Nov. 15, 2025. A score is still required on the file Fannie Mae

One more change coming. For FHA case numbers assigned on or after January 1, 2027, lenders may use FICO 10T and VantageScore 4.0, which can factor in rent and utility payments. The score thresholds do not change (HUD Mortgagee Letter 2026-11).

🚨 Lenders can set their own higher minimums, called overlays. Two lenders. Same file. Different answers.

Can I get down payment assistance in Texas with a 620 credit score?

Possibly. TSAHC (Texas State Affordable Housing Corporation) lists credit scores "as low as 620" for its loans with down payment assistance, and 640 for FHA manual underwrites. Income limits vary by county (TSAHC, accessed Oct. 23, 2026).

TDHCA (Texas Department of Housing and Community Affairs) runs My First Texas Home. It requires an approved homebuyer education course. Its stand-alone MCC (Mortgage Credit Certificate) option has no minimum credit score (TDHCA, accessed Oct. 23, 2026).

These programs come up most in the price band where my first-time buyers shop. Denton. Little Elm. Aubrey. Providence Village.

How much does a lower credit score cost on a mortgage?

Here's something that surprises a lot of buyers. On conventional loans, Fannie Mae charges LLPAs (loan-level price adjustments), and the credit score is one of the biggest inputs. Lenders may pass that cost to you as fees or a higher rate.

Fannie Mae's LLPA matrix (updated Sept. 30, 2026), purchase loan, more than 95% LTV (under 5% down):

Credit score LLPA On a $300,000 loan (approx.)
780+ 0.125% $375
740–759 0.500% $1,500
680–699 1.125% $3,375
639 or below 1.750% $5,250

💰 That's an approximate $4,875 swing on the same loan amount, before any rate difference. Same house. Same price. Different PAYMENT.

The good news: Fannie Mae waives all LLPAs for first-time buyers with qualifying income at or below 100% of AMI (area median income), or 120% in high-cost areas. Ask your lender if you may qualify.

My husband and I have helped many families get into homes that they didn't think they'd qualify. We work with them to increase score with a clear strategy. As well as utilize different programs like Down Payment Assistance. 

Quick answers

Can I buy a house in Texas with a 580 credit score?
Possibly, with an FHA loan and 3.5% down, subject to lender approval and qualification. Some lenders may require more.

Is 620 still the minimum for a conventional loan?
Not in Fannie Mae's DU since Nov. 15, 2025. Individual lenders may still use 620 or higher.

Does a VA loan have a minimum credit score?
VA sets none. Lenders typically may look for about 620, per VA's own buyer's guide.

My take

If your score sits just under a pricing tier, or under 580, waiting a few months to work on it may actually be the smarter move. I'll tell you that. Buying isn't automatically the right move for everyone.

But don't rule yourself out based on a number you heard once. Get the real one from a licensed lender. Then we look at the PAYMENT together.

Your credit score doesn't decide IF you can buy. It helps decide what buying costs. 🏡

📲 DM me "MY SCORE" on Instagram @JenniferKirkRealtor, or call 214-592-7605.

Jennifer Kirk, REALTOR® · Real Broker, LLC · Equal Housing Opportunity. I'm not a lender or financial advisor. Talk with a licensed lender about your situation.

Sources

Jennifer Kirk October 23, 2026

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