What Is the Minimum Credit Score for TSAHC in Texas?

If you’re a first-time homebuyer in Texas exploring down payment assistance, you’ve probably come across the Texas State Affordable Housing Corporation (TSAHC). This statewide program helps teachers, nurses, veterans, and other qualifying buyers purchase a home with low interest rates and down payment help.

But before applying, one of the first questions buyers ask is: What credit score do I need to qualify?

At New Horizons Lending, we work with TSAHC programs regularly, and here’s what you should know.

TSAHC Minimum Credit Score Requirements

To qualify for a TSAHC home loan or grant, buyers typically need a minimum credit score of 620.

That score applies to both the Homes for Texas Heroes Program and the Home Sweet Texas Program. However, the exact number can vary slightly depending on the type of mortgage you choose:

● FHA loans: Minimum credit score of 620 (some lenders may allow slightly lower with strong compensating factors).

● Conventional loans: Usually require at least a 640 credit score.

● VA and USDA loans: Generally follow their own program standards but often align with TSAHC’s 620 baseline.

It’s important to note that TSAHC itself doesn’t approve loans; partner lenders like New Horizons Lending do. That means the lender reviews your full application, including credit, debt-to-income ratio, and overall financial profile, to determine eligibility within TSAHC guidelines.

Why Credit Score Matters for TSAHC

Your credit score impacts two major parts of your TSAHC application:

1. Program eligibility – If your score falls below the minimum, you won’t qualify for TSAHC assistance until it improves.

2. Interest rate and assistance level – Higher credit scores often unlock better loan terms or more favorable grant options within the TSAHC structure.

For example, a borrower with a 680+ score might receive a slightly lower rate or qualify for the maximum assistance percentage compared to someone at 620.

What If Your Credit Score Is Below 620?

If your credit score is below the required level, don’t get discouraged. Many future homeowners start in the same place. Here are a few steps we recommend at New Horizons Lending:

● Check your credit report for errors and dispute any inaccuracies.

● Pay down credit card balances to reduce your credit utilization ratio.

● Avoid new debt or large credit inquiries while preparing to apply.

● Make on-time payments consistently for at least three to six months.

We’ve helped many Texas buyers raise their credit enough to qualify within a few months, and sometimes, those small changes make a big difference.

Other TSAHC Requirements to Know

In addition to meeting the credit score requirement, TSAHC applicants must be first-time homebuyers or individuals who haven’t owned a home in the past three years, with exceptions for veterans and “Heroes” professions such as teachers, nurses, and first responders. Buyers must also meet income and home price limits, which vary by county, and complete a homebuyer education course online or in person before closing. TSAHC assistance is offered in two forms: a grant that never needs to be repaid or a deferred second lien that helps cover the down payment and closing costs.

Get Qualified for TSAHC With New Horizons Lending