On average, Texas has the lowest credit score in the country. The score is a whopping 651 while the country has an average score of 692. What does this mean for Texas buyers? This means you're a higher risk and loan programs in Texas are different from other states. Look at this pretty chart.
To put things into perspective, Texas ranks 41st out of 50 states in home ownership. This is because with lower scores, it's harder to obtain a mortgage. Before the subprime fiasco that we're currently going through, a buyer with a 550 credit score could probably obtain 100% financing with higher than average interest rates, like 9%.
With the way the mortgage industry is going, the cut off of credit scores is now getting higher again. Though FHA doesn't look at credit scores, conventional mortgage companies do, and many want a minimum of a 600 score, if not 620. If the "average" in Texas is 651, that leaves you very little room for mistakes on your credit.
Average also means, half the people have higher scores and half the people have lower scores. If half the people have lower scores, and scores can go down into the 300's, that's not a good number. Texas has over 20 million people, so if approximately half those people can't obtain a mortgage, it's easy to see why we're ranked 41st in the country.
Another interesting fact that I found is that 23% of Texans lowered their credit score up to 50 points from January through June 2007. With an average at 651, I can see that score only getting worse if people don't start paying their bills and looking at credit in a different and better way.
What I find very interesting is that it seems that the higher scores are based in colder states and the lower scores are in warmer states. I guess when it's colder, it's less tempting to go out on a shopping spree and then not pay those bills.
I would welcome the opportunity to help you buy a house, but you have to do your part as well because your credit score is in your hands.
Remember, I work all of North Dallas County and Collin County including Richardson, Plano, Allen, Frisco, Carrollton, Garland, Rowlett, McKinney, etc... my car will take us anywhere you need to go!!
ARE YOU PACKED YET?!