What Home Loan Can You Get with a 680 Credit Score in Texas?

If you have a 680 credit score and are thinking about buying or refinancing a home in Texas, you are in a strong position. While a 680 score is not considered excellent, it falls solidly in the good credit range and qualifies many borrowers for competitive mortgage options.

At Herring Bank, we work with Texas homebuyers every day who fall right around this credit range. A 680 credit score provides flexibility, but the right loan depends on more than just your score. Understanding your options can help you secure better terms and avoid unnecessary costs.

This guide explains what home loans you can get with a 680 credit score in Texas, how interest rates are affected, and what lenders look for beyond credit.

Is a 680 Credit Score Good for a Home Loan?

Yes. A 680 credit score is generally considered good by mortgage lenders and exceeds the minimum requirement for most loan programs. Borrowers in this range typically qualify for conventional, FHA, VA, and USDA loans, depending on other financial factors.

That said, your credit score is just one piece of the approval process. Lenders also evaluate income, employment history, debt levels, assets, and the type of property you are purchasing.

Conventional Loans with a 680 Credit Score in Texas

A conventional mortgage loan is one of the most common options for Texas homebuyers, and a 680 credit score usually meets standard eligibility requirements.

Most conventional programs require a minimum score of 620, meaning borrowers with a 680 score often qualify for:

• 3% down payment options for eligible buyers

• 5% or 10% down conventional loans

• Fixed-rate or adjustable-rate mortgages

If your down payment is less than 20%, you will be required to carry private mortgage insurance (PMI). With a 680 credit score, PMI costs are generally reasonable and can be removed once sufficient equity is reached.

For a more detailed breakdown of eligibility, PMI rules, and rate structures, explore our full overview of Texas conventional mortgage loans.

FHA Loans for a 680 Credit Score

An FHA loan is often a strong option for borrowers with a 680 credit score, especially those seeking a lower down payment or more flexible underwriting guidelines.

FHA loans typically require:

• A minimum credit score of 580

• A 3.5% down payment

• Mortgage insurance premiums

With a 680 credit score, you are considered a well-qualified FHA borrower, which can result in smoother approval and competitive FHA pricing.

Borrowers who want a deeper understanding of FHA down payment requirements, mortgage insurance, and eligibility can review our complete guide to Texas FHA loans.

VA Loans with a 680 Credit Score

For eligible veterans, active-duty service members, and qualifying surviving spouses, VA loans offer some of the most favorable mortgage terms available.

Key benefits include:

• No required down payment

• No monthly mortgage insurance

• Competitive interest rates

While the VA does not set a minimum credit score, most lenders prefer scores of 620 or higher. A 680 credit score comfortably meets this expectation.

Eligible borrowers can learn more about benefits, entitlement, and the approval process in our guide to VA home loans in Texas.

USDA Loans and a 680 Credit Score

USDA loans are designed for eligible rural and suburban areas, many of which exist throughout Texas. These loans allow qualified borrowers to purchase a home with no down payment.

Typical USDA loan requirements include:

• A minimum credit score of 640

• Income limits based on household size

• Property location eligibility

With a 680 credit score, borrowers generally meet the credit criteria, though income and property location must also qualify.

Jumbo Loans with a 680 Credit Score in Texas

Jumbo loans are used when loan amounts exceed conforming loan limits. These loans typically require stronger borrower profiles.

Most jumbo lenders prefer:

• Credit scores of 700 or higher

• Larger down payments

• Significant cash reserves

While a 680 score may qualify in limited cases, borrowers often need strong compensating factors such as high income or substantial assets.

How a 680 Credit Score Affects Your Interest Rate

Your interest rate is influenced by several factors, including:

• Credit score

• Loan type

• Down payment amount

• Market conditions

A borrower with a 680 credit score may receive a slightly higher rate than someone with excellent credit, but still significantly better pricing than borrowers with lower scores. Even small rate differences can impact monthly payments and long-term interest costs.

What Lenders Consider Beyond Credit Score

In addition to your credit score, lenders review:

Debt-to-Income Ratio

Most programs prefer a DTI below 43%, though some allow higher ratios with strong compensating factors.

Employment and Income Stability

Lenders typically look for consistent income and employment history, especially over the last two years.

Assets and Cash Reserves

Funds for down payment, closing costs, and post-closing reserves can strengthen your application.

Property Type

Primary residences are generally easier to finance than investment properties or specialized property types.

Texas-Specific Mortgage Considerations

Texas mortgage lending includes unique regulations, particularly around cash-out refinances and home equity loans. Property taxes can also impact affordability calculations.

Buyers interested in rural properties or acreage should note that financing rules differ, which we explain in our guide to Texas land loans.

Is a 680 Credit Score a Good Time to Apply for a Mortgage?

For many borrowers, yes. If you have stable income, manageable debt, and sufficient funds for closing costs, a 680 credit score is more than adequate to begin the mortgage process.

Homeowners considering refinancing may also want to review our in-depth guide on refinancing a Texas mortgage to understand how a 680 credit score impacts refinance options.

Final Thoughts: What Home Loan Can You Get with a 680 Credit Score in Texas?

A 680 credit score provides access to multiple mortgage options in Texas, including conventional, FHA, VA, and USDA loans. The best choice depends on your overall financial profile and long-term goals.

If you are still comparing loan types, credit requirements, and next steps, our Texas home loan resource center can help guide you through the process from application to closing.

At Herring Bank, we focus on personalized mortgage solutions built around your financial goals, not just your credit score.