PATRICK’S QUICK ANSWER
The score you need depends on the loan. In 2026, most conventional loans want a 620 middle score, FHA opens the door at 580 with 3.5% down, and VA and USDA each set their own standards, often around 620 for VA. Your score also sets your rate, so a higher score saves real money every month. Pull your reports early and clean up errors.
The credit score that gets you into a home is a range, not a single magic number, and the answer changes with the loan type you choose. In 2026, most conventional loans want a 620 middle score, FHA opens the door at 580 with 3.5% down and has a path at 500 with 10% down, and VA and USDA each have their own rules. Here is how the requirements really break down for a San Antonio or Hill Country buyer.
The score that gets you approved and the score that gets you the best rate are two different things. Let me show you the requirements by loan type, what actually drives the rate you are quoted, and the practical steps to raise a score before you apply.
Credit Score Requirements by Loan Type
Each loan program publishes a minimum, and your lender adds its own 'overlay' on top, so the real bar can sit a little higher than the program minimum. Here is the landscape I work with most for Texas buyers.
- Conventional (Fannie Mae and Freddie Mac): most lenders want a 620 middle credit score, with a 3% down option and private mortgage insurance in the payment.
- FHA: 580 with 3.5% down is the common bar, and the program allows as low as 500 with 10% down through many lenders, though the rate and mortgage insurance pricing get worse at the lows.
- VA: the Department of Veterans Affairs sets no minimum score of its own for eligible veterans, but most lenders apply an overlay around 580 to 620, and VA does not require mortgage insurance.
- USDA: the 100% financing program typically looks for a 640 score, though a well-qualified borrower with compensating factors can sometimes work at a slightly lower number depending on the lender.
What Actually Determines the Rate You Get
Approval is one gate, pricing is another. Lenders price your rate mainly off your credit score tier, your down payment or equity, and your loan type, with borrowers in the 740-plus bucket getting the best rate, and lower scores paying more in rate and often more for mortgage insurance. The difference between a 640 and a 740 score can move your quoted rate meaningfully, which changes your payment for the life of the loan.
That is why I tell buyers with a little runway to lift their score before they apply, because every tier you climb saves you money every single month.
How Scores Affect Mortgage Insurance and Pricing
On conventional loans with less than 20% down, PMI cost scales with your score, with lower scores paying more. On FHA, mortgage insurance is priced in tiers that get steeper as your score drops. The same home, the same down payment, and a modest score difference can mean hundreds of dollars a year in mortgage insurance alone.
The good news in today's market: there are legitimate paths for buyers in the 580 to 640 range, especially with FHA, VA, and down payment assistance, so a lower score does not have to take you out of the game.
Debt to Income Expectations
Your score is only part of the picture. Lenders also look at your debt to income ratio, the share of your gross income that goes toward housing plus your other minimum debts. Most programs want to see a total DTI at or below about 43% to 45%, though cash reserves, a large down payment, and a high score can let a lender stretch that in some cases.
Your score tells the lender how you have handled credit. Your DTI tells them whether the payment fits. We manage both when we build your file.
Practical Steps to Raise Your Score Before Applying
The steps that move a score are simple, and they take a few months to show up, which is why starting early wins. Here is the sequence I walk buyers through.
- Pull your credit reports from the three bureaus and dispute any error you find, because a fix can lift your score more than anything else on this list.
- Pay every bill on time and a few days early if you can, since payment history is the heaviest weight in your score.
- Lower your credit card balances, because utilization, the share of limit you use, is the second biggest driver, and the sweet spot is well under 30%.
- Do not close old accounts, because age of credit helps you, and do not open new cards or take on new debt in the months before you apply.
- Once a balance is zero, keep the account open and let the statement report a small routine balance you pay off in full.
- Run your numbers with me a few months out so I can tell you exactly which tier you are in and what to do next.
What If My Score Is Not There Yet?
A lower score is a fixable problem, not a dead end. Between FHA's flexibility, VA for veterans, down payment assistance, and a focused credit plan, most buyers have a real path. The worst move is to pay for a 'score boost' service or open new accounts to chase a number, because those rarely help and often hurt.
Bring me your situation and I will tell you honestly which program gets you there soonest and what to do in the meantime. That is the honest advice side of being on your side.
Nerd Alert
The actual numbers and math behind this topic, the way I run them on the channel.
Here is the pricing reality in rough numbers. The Freddie Mac weekly survey put the national 30-year fixed average near 6.76% in September 2026 (an estimate). A borrower in the 760-plus bucket might be quoted meaningfully below that, while a 620 to 640 borrower often sees a higher rate plus added mortgage insurance, which on a $295,000 home can raise the monthly payment by a hundred dollars or more versus a super-prime borrower.
Using general 2026 pricing tiers as an illustration (estimates, not quotes): a strong-credit FHA borrower at 3.5% down might land a payment in the low $2,300s with principal, interest, taxes, insurance, and FHA's mortgage insurance, while the same home at a conventional 620 minimum with PMI could run higher per month because of the rate and PMI together.
- A one-point difference in rate on a $295,000, 30-year loan changes the payment by roughly $150 to $180 a month, which is why lifting a score tier matters.
- FHA mortgage insurance premiums rise as credit scores fall, so a 580 borrower pays more per month than a 660 borrower on the same loan.
- Lenders use your middle score across the three bureaus on a single borrower, or the lower middle score of the two buyers when it is a joint application.
For a San Antonio buyer the takeaway is clear: your score sets both your door in and your monthly payment. A few months of disciplined credit work before you apply can be worth thousands over the life of the loan, and that is exactly the kind of number I run on your side.
These are estimates for illustration, not quotes. Figures use publicly available rates and program terms at the time of writing, and your actual rate, fees, and payment depend on your credit file, loan program, and closing date.
