Buying a House in Texas With a Credit Score Under 620

If your credit score starts with a 5, you have probably heard some version of “come back when it’s better.” That can feel like the door is closed, especially when rent keeps going up and the homes you like keep selling. It isn’t closed. A score under 620 changes which doors are open and what they cost, and it usually means waiting on Texas down payment assistance, but it doesn’t take homeownership off the table.

This guide is the honest version. It covers which loans may still work below 620, why the state assistance programs start at 620, what you can realistically do about your credit in the next 30, 60, and 90 days, and how to decide between buying now and waiting a few months. Every rule here comes from HUD, the VA, USDA, Fannie Mae, TSAHC, TDHCA, the CFPB, or the FTC. No one can promise you a specific score by a specific date, and we won’t either.

Four Beliefs That Keep Texas Buyers Under 620 Stuck

• “Under 620 means no mortgage.” Not for FHA. HUD’s Handbook 4000.1 allows a minimum decision credit score as low as 500, with 10% down below 580. Individual lenders may still set higher minimums, so you may need to ask more than one.
• “A credit repair company can erase my bad credit.” The CFPB says you generally can’t remove accurate negative information from your credit report. You can dispute errors yourself for free.
• “Texas down payment assistance works with any score.” The two statewide programs, TSAHC and TDHCA, both start at 620. Some city and county programs set their own rules, so check your local housing department, but the statewide help needs 620.
• “Checking my credit will lower my score.” According to the CFPB, requesting your own credit report does not hurt your score. Looking is the first step.

Can You Buy a House in Texas With a Credit Score Under 620?

Possibly. It depends on the loan type and on the lender. Here is where each option draws its line:

For the full breakdown of scores at every level, including which score lenders actually use, see our guide to the credit score you need to buy a house in Texas.

Why Texas Down Payment Assistance Starts at 620

TSAHC and TDHCA write their credit floors into their program rules. TSAHC’s daily rate sheet lists a 620 minimum for FHA, VA, and USDA loans and 640 for conventional loans, adds that manufactured homes need 640 on every loan type, and notes that lenders can charge an extra 0.25% origination fee on government loans with scores from 620 to 639. TDHCA’s program matrices list a 620 minimum middle credit score for both My First Texas Home and My Choice Texas Home.

That means a score of 615 and a score of 620 can lead to very different closing-day math. At 620, you may qualify for Home Sweet Texas, Homes for Texas Heroes, or TDHCA’s programs, which can put a percentage of the loan amount toward your down payment and closing costs. Below 620, you would be covering those costs yourself.

FHA With a Score Between 500 and 619

FHA uses what HUD calls the minimum decision credit score. When three scores are reported, it is the middle one; when two are reported, it is the lower one. With more than one borrower, HUD uses the lowest of the borrowers’ scores, so adding a co-borrower with better credit may help your income but not your minimum score. Here is how the score changes your required down payment on a $250,000 home:

Two more FHA rules matter below 580. If your loan ends up manually underwritten, HUD caps your debt-to-income ratios at 31% for housing and 43% overall when your score is below 580 or you have no score. And lenders often set their own minimums above HUD’s, so one lender’s “no” is not FHA’s “no.” Our Texas FHA loan guide covers limits, mortgage insurance, and costs.

Credit scoring is also changing. HUD’s Mortgagee Letter 2026-11 says FHA will accept FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027, and that the minimum score thresholds stay the same.

VA, USDA, and Conventional Loans Below 620

VA doesn’t set a minimum credit score. Its buyer’s guide says VA does not require one, while noting that lenders typically may want 620 unless there is a large down payment. If you have VA entitlement, it is worth asking several VA lenders, because their minimums differ. USDA’s rules for guaranteed loans ask for an acceptable credit score but don’t name a number in the regulation; USDA’s automated system weighs it, and many lenders add their own floor.

Conventional loans are the hardest path under 620. Fannie Mae’s Selling Guide no longer sets a minimum score for loans run through its automated system, but manually underwritten fixed-rate loans still need 620, and lower scores raise pricing and mortgage insurance costs. Our PMI guide explains how that insurance works.

Start With Errors: How Disputes Work

Before you work on anything else, make sure your reports are right. The FTC says the three nationwide credit bureaus let you check your report from each one once a week for free, and AnnualCreditReport.com is the authorized site. Look for accounts that aren’t yours, late payments you made on time, balances that are wrong, and old debts listed twice.

If you find an error, the CFPB explains that fixing it generally means contacting both the credit bureau and the company that reported the information. A bureau generally must investigate within 30 days of receiving your dispute (45 days if you dispute after getting your free annual report). Keep copies of everything you send.

What Actually Moves a Credit Score

The CFPB’s guide to getting and keeping a good credit score names the basics:

• Payment history. Most scores treat on-time payments as the top factor. Autopay for at least the minimum is the simplest protection.
• How close you are to your limits. The CFPB notes that scoring models look at how close you are to being maxed out, and that experts advise using no more than 30% of your total credit limit.
• New credit. Applying for a lot of credit in a short time may look like financial trouble to lenders, so hold off on new cards and car loans while you prepare.

How much any of this changes your score, and how fast, depends on your full credit file. That is why we don’t quote a number of points.

Rapid Rescore: When It Helps

A rapid rescore is something a lender requests, not something you order. In 2024 remarks, the CFPB described it as a paid service that lets loan officers get a credit file reviewed and updated quickly. It can help when you have already fixed an error or paid down a balance and the credit report hasn’t caught up yet. It can’t remove accurate negative information. If you are a few points from 620 and have just paid down a card, ask your loan officer whether a rescore makes sense and what it would cost.

Be Careful With Credit Repair Companies

You can do everything a credit repair company does, including disputes, for free. If you hire one anyway, know the rule: under the federal Credit Repair Organizations Act, the CFPB says credit repair companies can’t request or receive payment until they’ve completed the services they promised. A company asking for money up front, or promising to remove accurate late payments, is a red flag.

A better first call is a HUD-approved housing counselor. The CFPB says these agencies can offer independent advice, often at little or no cost, and many also offer homebuyer education courses, which Texas assistance programs may require.

A 30, 60, and 90-Day Plan to Get Mortgage-Ready

Buy Now With FHA, or Wait for 620?

Here is a simple way to compare. On a $250,000 home, FHA’s 3.5% minimum down payment is $8,750 before closing costs. If you reach 620 and qualify for TSAHC or TDHCA assistance, those programs may cover a percentage of the loan amount, up to 5% depending on the option and the day, toward the down payment and closing costs. On a loan of about $241,000, every 1% of assistance is roughly $2,400. The trade is a few months of waiting against thousands of dollars at closing, plus the higher rate that comes with assistance. Our guide to closing costs in Texas shows what else to plan for, and our TSAHC rates page shows today’s assistance options.

If you need to move sooner, FHA without assistance may still work at 580 or higher. If you can wait, getting to 620 opens more help. A lender in our network can price both paths on your real numbers.

Credit Under 620: Frequently Asked Questions

Credit under 620: frequently asked questions

† ShopDPA is The Texas Down Payment Assistance Marketplace, a home loan and down payment assistance referral service. We are not a mortgage lender, mortgage broker, loan officer, or credit repair organization, and we do not originate, fund, or service loans or offer credit repair. We are not affiliated with HUD, the VA, USDA, Fannie Mae, TSAHC, TDHCA, the CFPB, the FTC, or any government agency. Credit score minimums, loan limits, and program rules are set by those agencies and by individual lenders, and they change. This page is general education, not credit, tax, or legal advice. Confirm your options with a licensed mortgage professional or a HUD-approved housing counselor. Equal Housing Opportunity.