Home Loans In Stephenville, Texas

Welcome to Capital Home Mortgage Stephenville. Uniquely located in rural Texas southwest of the Dallas-Fort Worth area, the city of Stephenville, with over 20,000 friendly people, is a gracious community with a rich western heritage. The real estate market in Stephenville is so competitive it trended up 27.9% year-over-year with a median listing home price of $157 per square foot.

One of the most significant factors influencing a person’s ability to buy a house is his credit score. A good look at your credit history will tell the lender how capable you handle debt. A good credit score will make the home buying process much easier and more affordable; the higher your credit score, the better your home loan terms will be.

What Credit Score is Needed to Qualify for a Mortgage?

Your FICO credit score is between 300 and 850, indicating your creditworthiness. The higher your credit score, the more lenders will be interested in working with you. 

While lenders prefer borrowers with higher credit ratings, obtaining a mortgage with less-than-ideal credit is still feasible. Credit score standards for government-backed loans are generally lower than most home loan options.

• Credit Score Requirements for Conventional Loans

Conventional loans are not backed by a government program or guaranteed. They are ideal for consumers with better credit scores and plenty of funds set aside for a down payment. 

A conventional loan may be your best option if your credit score is 620 or higher. If your credit score falls below 620, lenders may refuse to grant you a loan.

• Credit Score Requirements for FHA Loans

If you have a low credit score or have little money saved for a down payment, you may want to explore FHA loans, which are loans guaranteed by the Federal Housing Administration.

A credit score of 580 is usually enough to qualify for an FHA loan. Having a higher credit score, on the other hand, may entitle you to a lower FHA mortgage rate.

• Credit Score Requirements for VA Loans

If you are a veteran, a qualified service member, or a spouse of one, you may be able to purchase a home with the VA loan — a government-guaranteed loan by the Department of Veterans Affairs. 

There is no minimum credit score requirement to qualify for a VA loan, but some lenders may have their qualification standards. Generally, lenders require a 620 score for all VA applicants.

• Credit Score Requirements for USDA Loans

USDA loans are available to borrowers who wish to live in an eligible rural or suburban location, with a household income lower than 115% of the area’s median income.

The program requires no down payment and offers competitive interest rates, but you will need a credit score of at least 640 to qualify for a USDA loan.

How To Improve Your Credit Score

Now that you’ve gained a basic understanding of the credit score requirements for various types of loans, it’s time to examine your credit report and see how you fare.

If you’re looking to qualify for a loan, but your credit score isn’t quite there yet, you can take actionable steps to improve it by:

1. Paying off your outstanding debts.
2. Making bills payments on time.
3. Avoid applying for additional credit.
4. You may also enlist the help of a credit repair service for professional advice on how to improve your credit rating faster.

Stephenville, Texas Mortgage Lender

The thing is, you don’t always need a stellar credit history to obtain a mortgage. It is possible to qualify for a home loan with a credit score of 500. 

Need to buy a home but are worried about your credit score? We may be able to help!

Capital Home Mortgage is a full-service mortgage lender offering a comprehensive array of home loan products, from government-backed loans to Conventional-conforming loans, Jumbo loans, and Non-Qualified mortgage loans. We are a direct mortgage lender in Texas, which means we control the entire home loan process from application to closing. 

We’re Ready To Work For You!

Are you planning to buy a home or refinance your mortgage in Stephenville, Texas? Call Capital Home Mortgage today at 254-730-7371. We offer a wide range of loan products to accommodate varying needs and budgets.

Our mortgage specialists can help you find the most suitable loan options for your individual situation.