What Credit Score Do You Need to Buy a House in Wichita Falls?

What credit score do you need to buy a house in Wichita Falls?

Most Wichita Falls homebuyers need a credit score of at least 620 to qualify for a conventional mortgage, but FHA loans allow scores as low as 580. VA loans, popular with veterans near Sheppard Air Force Base, often have flexible credit requirements, making homeownership accessible for more buyers.

Why does Credit Score Matter When Buying a Home?

Your credit score directly impacts your ability to buy a home, your interest rate, and your overall loan approval. Lenders use this three-digit number to assess how reliably you manage debt. In Wichita Falls, where the median home price ranges between $200,000 and $215,000, even a small change in your interest rate could save you thousands over the life of your loan. If you have a 30-year fixed rate loan a small amount each month can really add up over time.

Minimum Credit Score Requirements by Loan Type

Different types of home loans have different credit score requirements. Here’s a quick guide:
– Conventional Loan: Minimum score is typically 620.
– FHA Loan: Scores as low as 580 may qualify with 3.5% down, but 500-579 may require 10% down.
– VA Loan: No set minimum score, but most lenders prefer 580+.
– USDA Loan: Often requires 640, ideal for rural areas around Wichita Falls.
– Jumbo Loans: May require 700+ due to higher lending risks.

Credit Score Ranges and What They Mean

– 300–579 (Poor): Very difficult to qualify for a mortgage without significant down payment.
– 580–669 (Fair): FHA loans may be your best option, often with higher interest rates.
– 670–739 (Good): Qualifies for many conventional loans with competitive rates.
– 740–799 (Very Good): Excellent rates and flexible loan options.
– 800+ (Exceptional): Access to the best rates and terms available.

Wichita Falls Market Context

In Wichita Falls, the housing market remains affordable, and there is a relatively lower over all cost of living with shorter commute times compared to major Texas cities. With an average home price around $200,000, maintaining a healthy credit score helps you lock in low interest rates. The neighborhoods near Sheppard Air Force Base like Expressway Village neighborhood, and nearby communities such as Burkburnett and Iowa Park offer excellent options for first-time buyers and military families. The cities of Burkburnett and Iowa Park are both only a 15 minute drive to Sheppard AFB, have good price points for homes, and often offer larger lot sizes with some over an acre. Local lenders are familiar with VA loans, FHA programs, and state-backed assistance programs to help buyers with lower credit scores.

How to Improve Your Credit Score Before Buying

Improving your credit score before buying can help you save money and qualify for better loans. Tips include:
1. Pay down debt: Reduce credit card balances to below 30% of your limit.
2. Pay bills on time: Payment history is the largest factor in your score.
3. Avoid new credit accounts: Multiple inquiries can temporarily lower your score.
4. Check your credit report: Correct any errors through annualcreditreport.com. We have access to resources who can help challenge and remove negative items on credit reports if you’re having trouble doing this by yourself.
5. Work with a local REALTOR® and lender: They can guide you on realistic loan options based on your credit profile.

Loan Options for Buyers With Lower Scores

If your credit isn’t perfect, there are still options:
– FHA Loans: Lower scores accepted with larger down payments.
– VA Loans: For veterans and service members; often no down payment or PMI.
– USDA Loans: Designed for rural buyers; Wichita Falls and surrounding areas may qualify.
– First-Time Buyer Programs: TSAHC and other Texas programs help with down payment assistance.

Why Work With a Local Expert

Tim Lockhart REALTOR®, Keller Williams Realty serving Wichita Falls and surrounding north Texas communities, has extensive experience helping buyers improve their credit, find affordable financing, and secure their dream homes. With over 300 closings and a reputation for supporting military families and first-time buyers, Tim provides hands-on guidance at every step.

Conclusion: Know Your Score, Plan Ahead

A credit score of 620 or higher opens the door to most home loans in Wichita Falls, but don’t be discouraged if yours is lower. With guidance, planning, and access to FHA and VA programs, homeownership is within reach. Contact Tim Lockhart REALTOR® today for a no-obligation consultation and a customized path to buying your home in Wichita Falls.