What credit score do I need to buy a home?
Reviewed August 2026 by Shannon Miles Group
Conventional loans typically require a minimum score of 620, FHA loans accept scores down to 580, and VA loans have no official minimum. Higher scores mean better interest rates. In Northeast Texas, local lenders may have flexible options for buyers with lower scores.
Credit score requirements by loan type.
Your credit score is one of the most important factors in qualifying for a mortgage. It affects not just whether you are approved, but what interest rate you receive. Even a small difference in rate can save or cost thousands over the life of the loan.
Minimum credit scores by loan type
- Conventional loans. Minimum 620. Requires private mortgage insurance (PMI) if down payment is under 20%.
- FHA loans. Minimum 580 with 3.5% down. Scores 500-579 may qualify with 10% down. Popular for first-time buyers.
- VA loans. No official minimum, but most lenders require 620. Zero down payment for eligible veterans and active-duty.
- USDA loans. Typically 640 minimum. Zero down payment for eligible rural properties. Very relevant for Northeast Texas buyers.
How credit score affects your rate
A higher credit score qualifies you for lower interest rates. On a $250,000 loan, the difference between a 680 and a 760 credit score could be $100 or more per month. Over 30 years, that adds up to tens of thousands of dollars.
Financing options in our area.
USDA loans are particularly relevant for rural Northeast Texas properties. They offer zero down payment for eligible rural areas and competitive interest rates. Many properties in Lamar, Fannin, Delta, Hopkins, Red River, and surrounding counties qualify. Income limits apply, but they are generous enough that many buyers in our area qualify.
Local lenders in Paris, Sherman, and nearby communities often have more flexibility than large national banks. They know the local market and may be able to work with buyers who have slightly lower scores or unique income situations.
Improving your credit before buying.
- Check your credit report. You are entitled to a free report from each bureau annually at AnnualCreditReport.com. Review for errors and dispute any inaccuracies.
- Pay down credit card balances. Credit utilization ratio is a major factor. Keeping balances below 30% of your limit helps your score.
- Do not open new credit before applying. New inquiries and accounts can lower your score. Wait until after closing.
- Talk to a lender early. A pre-approval consultation tells you where you stand and what you need to improve. It does not cost anything to ask.
More answers you might find useful.
Not sure where your credit stands?
Call us or stop by the office at 2322 Lamar Ave. in Paris. We can connect you with trusted local lenders who will give you honest answers.