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What Credit Score Do I Need to Buy a House in Austin & Central Texas?

By Stephanie Donnell — Austin Mortgage Advisor (@BestAustinLender)

· fha,conventional,first time homebuyer,mortgage tips

A lot of Texas buyers assume they need perfect credit to buy a home — but that’s simply not true. Every year, thousands of homes close across Central Texas with very average credit scores.

Austin & Central Texas Credit Score Snapshot

Based on recent local trends:

  • Average credit score for Austin-area buyers: ~680
  • FHA buyers: often around 640–650
  • Conventional buyers: typically 700+ for the best pricing

Lower scores don’t automatically mean “no” — they usually just mean different loan options or pricing strategies.

Why Credit Improvements Matter More in Texas

Because Texas has higher property taxes than many other states, even a small interest-rate difference can noticeably impact your monthly payment.

That’s why in Central Texas:

  • A 10–20 point credit score increase can matter
  • Small improvements often unlock better rates
  • Better rates help offset taxes and insurance costs

You don’t need perfect credit — you need a smart plan.

Your credit score doesn’t need to be flawless to buy a home in Austin or the surrounding areas. Understanding which loan programs fit your score — and whether a small improvement could save you money — is what really counts.

If you want help figuring out where you stand, I’m always happy to walk through it with you.

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