credit and income

What credit score do I need for an FHA loan in Texas, and can I buy with a 580?

QUICK SUMMARY

With us, the starting point for an FHA loan is a 580 credit score. At 580 and above, HUD's rules allow FHA's maximum financing, but you still have to qualify on income, debts and the rest of your file. Texas down payment assistance programs usually ask for 620 or higher, so a 580 to 619 score can work for FHA but may not work with state assistance.

Why you'll see different numbers online

You'll read that FHA allows scores down to 500. That's HUD's rule, but it isn't the whole story. Here's how the layers stack up:

HUD (agency rule). What it says: A borrower is not eligible for FHA if the score used for the decision is under 500. From 500 to 579, the loan is limited to 90% loan-to-value. At 580 and above, the loan is eligible for maximum financing (HUD 4000.1 II.A.1.b.ii(A)(3) and II.A.2.b.i).
Our company minimum. What it says: 580, on every FHA loan, including manually underwritten files. We don't offer FHA loans below 580. Beyond that, we follow HUD's guidelines.
Program eligibility. What it says: TSAHC and TDHCA down payment assistance generally start at 620. TSAHC asks for 640 on conventional loans and on manually underwritten FHA loans (program details here).
Underwriting approval. What it says: Your score gets you in the door. Income, debts, assets and credit history still have to be approved.

So if you're at 560, HUD's rule may technically allow FHA, but it's not something we can do for you today. The honest move at that score is a plan to get above 580, and I'm glad to help you build one.

Which score counts

Mortgage lenders pull a three-bureau credit report. Under HUD's current rule, if you have three scores, the middle one is used. If you have two different scores, the lower one is used. If there are two or more borrowers, the lowest of those scores is used for the loan (HUD 4000.1 II.A.1.b.ii(A)(3)). That's why the score on your banking app or credit card statement can be different from the one that matters here.

What can change the picture at 580 to 619

Debt-to-income. If your file needs a manual review instead of an automated approval (we do offer FHA manual underwriting), HUD sets ratio limits that depend on your score and on compensating factors like cash reserves (HUD 4000.1 II.A.5.d.viii). See FHA manual underwriting.
Recent late payments or collections. These matter more than the score itself in some files. See collections and charge-offs.
Down payment assistance. Below 620, most Texas state programs are off the table, so plan on FHA's 3.5% minimum investment coming from savings, a gift, or seller help toward closing costs. See buying with little savings.

What's changing in 2027 (upcoming, not current)

HUD issued Mortgagee Letter 2026-11 on October 8, 2026. For FHA case numbers assigned on or after January 1, 2027, lenders will be able to use FICO 10T and VantageScore 4.0 alongside Classic FICO, and HUD is changing how the score used for the decision is picked when more than one model is on the report. HUD says the 500 and 580 thresholds don't change (HUD ML 2026-11). If you're applying now, today's rules apply. Lenders won't all adopt the new models on the same day, so ask before you assume.

Fictional example

This example is made up to show how the layers work.

Luis in Haltom City has middle scores of 596 and his wife has 641. Because the lowest middle score counts, the loan is decided at 596. That clears our 580 minimum for FHA. It doesn't meet the 620 most state assistance programs ask for, so his down payment plan uses savings plus a gift from his parents. Whether he's approved still comes down to underwriting his income and debts.

What to do next

Find out your mortgage scores, not just the app score. I can help you understand which credit scores matter for mortgage qualification.
If you're under 580, don't apply all over town. Let's figure out what's dragging the score down first.
If you're 580 to 619 and want state assistance, ask what it would take to reach 620 before you shop.

Next step

Have a score in the 580s or 600s? Let me read your actual mortgage credit and tell you where you stand. Book a call

Sources

Links checked Oct 19, 2026.

HUD Handbook 4000.1 (Update 18, issued Aug 12, 2026), II.A.1.b.ii(A)(3), II.A.2.b.i, II.A.5.d.viii: https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf
HUD Mortgagee Letter 2026-11 (Oct 8, 2026; effective for case numbers assigned on or after Jan 1, 2027): https://www.hud.gov/sites/default/files/hudclips/documents/2026-11hsgml.pdf
TSAHC homebuyer programs (lender view, retrieved Oct 19, 2026): https://www.tsahc.org/lenders-realtors/tsahc-homebuyer-programs/
TDHCA My First Texas Home program matrix: https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf

About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.

Equal Housing Opportunity.

Last reviewed: Oct 2026