The mortgage industry has four real credit thresholds in San Antonio, and each one opens a different set of programs. At 580, FHA becomes available with 3.5% down. At 620, the full menu opens: conventional loans, VA with most lenders, and all statewide DPA programs including TSAHC and SETH. Below 580, FHA still works at 10% down but the barrier is substantially higher. Below 500, no standard program applies and the path starts with credit rebuilding.

The non-obvious issue is that the score alone does not determine qualification. FHA’s automated underwriting system evaluates the full credit report, including payment history patterns, collections, charge-offs, and debt ratios. A buyer at 585 with a recent late payment may be denied while a buyer at 582 with a clean recent history gets approved. The score is the gate, but the file is what the underwriter reads. This is why a lender credit review, not a Credit Karma estimate, is the real starting point.

The biggest misconception among low-credit San Antonio buyers is that they need $20,000 to $30,000 saved for a down payment. Multiple programs exist to cover it. At 620, TSAHC provides up to 5% of the loan amount as a grant that never needs to be repaid. SETH provides similar DPA. The City of San Antonio HIP program provides up to $30,000 at 0% interest, forgivable over 5 to 10 years, though it is currently paused for FY 2026 and may reopen October 2026 if City Council renews funding.

The non-obvious issue is the 580-to-620 DPA gap. At 580, FHA is available but no currently-active DPA program accepts that score. The buyer must come up with $10,150 out of pocket on the $290,000 median. At 620, the buyer gets TSAHC covering most or all of it. This means the 3 to 6 month credit path from 580 to 620 has a concrete dollar value: approximately $10,000 in DPA that becomes available when you cross the threshold. For the full program breakdown with income limits and current status, see our DPA guide.

A bankruptcy or foreclosure does not permanently disqualify you. FHA is available 2 years after a Chapter 7 discharge. VA follows the same 2-year timeline. Chapter 13 allows FHA after just 12 months of on-time plan payments with court approval. Foreclosure to FHA is 3 years from the completion date. These waiting periods are shorter than most buyers assume, and the path to qualification during the waiting period is the credit rebuild plan.

The non-obvious issue is the difference between the discharge date and the filing date. All waiting periods for Chapter 7 start from the discharge, which typically comes 3 to 4 months after filing. Buyers who count from the filing date think they are eligible sooner than they are. Conversely, Chapter 13 buyers who think they must wait for full discharge, which can take 3 to 5 years, can actually apply for FHA after just 12 months of on-time plan payments with court permission. The details of which date starts the clock are the difference between waiting years and waiting months. For the full waiting-period table and rebuild plan, see our post-bankruptcy guide.

The cost difference between buying at 580 and at 680 is real but smaller than most buyers expect. On a $290,000 San Antonio home, the interest rate difference is typically 0.5% to 1.0%, which adds $75 to $150 per month. FHA mortgage insurance at 0.55% adds $128 per month for the life of the loan, while conventional PMI at 620 drops off at 20% equity. Over 5 years, the total extra cost of buying at 580 vs 680 is roughly $12,000 to $18,000.

The non-obvious issue is the cost of NOT buying. San Antonio average rent is approximately $1,689 per month. Twelve months of renting while improving credit costs $20,268 in rent with zero equity. In most scenarios, buying now at a higher rate and refinancing later is cheaper than renting while waiting for a better score. A lender can model both paths for your exact numbers using our San Antonio affordability calculator, which uses real Bexar County tax and Texas insurance rates, not national averages.