Of all the questions I get from first-time buyers before our first conversation, this is the one that carries the most anxiety: “Is my credit score good enough?” The assumption most people walk in with is that their score has to be near-perfect to buy a home. That’s almost always wrong.
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The truth is more nuanced — and more hopeful. Different loan programs have different minimums. Down payment assistance programs layer on additional requirements. And even if your score needs work, 60–90 days of the right moves can change your picture significantly. Let’s walk through all of it.
The Short Answer: What Score Do You Need?
Here’s the landscape for the most common loan types available to San Antonio first-time buyers:
| Loan Type | Minimum Credit Score | Notes |
|---|---|---|
| FHA Loan | 580 (for 3.5% down) · 500–579 (for 10% down) | Most accessible option for lower scores |
| Conventional Loan | 620 minimum (typically 680+ for best rates) | Better rates at higher scores; no MIP with 20% down |
| VA Loan | No official minimum (lenders typically require 580–620) | For eligible veterans and military — $0 down possible |
| USDA Loan | 640 typical (program requires no minimum) | Rural/suburban areas; income limits apply |
| TSAHC / TDHCA DPA | 620 minimum (most programs) | Verify with participating lender — some require higher |
These are minimums, not targets. Meeting the minimum score gets you in the door — but your interest rate, the programs you qualify for, and your overall loan terms improve meaningfully as your score rises. A 660 is better than a 620. A 700 is better than a 660.
How Your Score Affects Your Interest Rate
This is where the numbers really matter. A difference of 40 credit score points can translate to a difference of 0.5–1.0% in your interest rate. On a $250,000 loan, that’s hundreds of dollars per year — and thousands over the life of the loan.
| 500–579 | FHA only at 10% down |
| 580–619 | FHA 3.5% down; limited DPA |
| 620–659 | DPA programs open; higher rates |
| 660–719 | Good rates; full DPA access |
| 720+ | Best rates available |
The jump from 619 to 620 is significant for San Antonio buyers specifically because it opens access to most DPA programs. The jump from 659 to 660 meaningfully improves your interest rate. These thresholds are real, which is why knowing your exact score — and having a plan to move it — is so valuable early in the process.
What Actually Makes Up Your Credit Score?
Your FICO score — the one most mortgage lenders use — is calculated from five factors. Understanding these helps you know which levers to pull if you need to improve your score:
- Payment history (35%). The biggest factor. Every on-time payment helps; every missed or late payment hurts. Even one 30-day late payment can drop your score significantly.
- Credit utilization (30%). How much of your available credit you’re using. If you have a $5,000 credit limit and you’re carrying a $4,000 balance, your utilization is 80% — which is high and hurts your score. Aim for under 30%, ideally under 10%.
- Length of credit history (15%). Older accounts help. Don’t close your oldest credit card before you apply for a mortgage.
- Credit mix (10%). Having different types of credit (cards, installment loans) is slightly positive. Don’t open new accounts just for this — it’s not worth it.
- New credit inquiries (10%). Hard pulls from new applications can temporarily lower your score. Don’t open new credit cards or finance anything new in the 3–6 months before you apply for a mortgage.
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What If Your Score Is Below 620?
This is where I push back against the assumption that homeownership is “years away.” In most cases, it’s not. Here’s what I’ve seen work in 60–90 days:
Make every payment on time. Set up auto-pay on everything. One missed payment right before your mortgage application can derail the whole process.
Pay down credit card balances. If your utilization is high, paying down balances is the fastest way to move your score. Getting from 80% to 30% utilization can add 30–50 points quickly.
Dispute errors on your credit report. Pull your free report at AnnualCreditReport.com and look for anything that’s wrong — accounts that aren’t yours, late payments that were actually on time, balances that are incorrect. Dispute errors in writing with each bureau. Correcting errors can move your score significantly.
Become an authorized user. If a family member with excellent credit adds you as an authorized user on a long-standing, low-utilization card, their positive history can boost your score — sometimes dramatically.
Don’t close accounts or open new ones. Both moves can hurt your score. Stay stable.
The 90-day plan works. I’ve helped buyers go from a 598 to a 634 in 60 days by paying down two credit cards and disputing one error on their report. That jump unlocked TSAHC eligibility and changed everything. Don’t assume low credit means a long wait — let’s look at your specific situation.
Does a Hard Inquiry Hurt My Score When I Apply for a Mortgage?
Yes, but less than you might think. A single mortgage inquiry typically drops your score by fewer than 5 points. And if you apply with multiple lenders within a short window (usually 14–45 days, depending on the scoring model), the credit bureaus treat those as a single inquiry — meaning you can shop for the best rate without significant score damage.
When Should You Check Your Credit Score?
Right now, if you’re thinking about buying in the next 6–18 months. The earlier you know, the more time you have to improve. Free options include:
- Credit Karma or Credit Sesame (uses VantageScore — close but not identical to FICO)
- AnnualCreditReport.com (free full report from all three bureaus — no score, but shows all accounts and potential errors)
- Many credit cards now include free FICO score access in their apps
When you’re ready to get serious, a lender will pull your actual mortgage FICO scores (there are three — one from each bureau — and lenders typically use the middle one). That’s the number that matters most.
The Bottom Line
You don’t need a perfect credit score to buy a home in San Antonio. You need a real picture of where you stand, a clear plan if improvement is needed, and the right loan program matched to your actual credit profile. That’s a conversation worth having sooner rather than later.
