The Credit Card Rate Cap That Could Kill Your Mortgage Approval in 2026

A North Texas Market Intelligence Report by Bobby Franklin

---

Listen, I’m about to tell you something that could derail your homebuying plans this year, and it has nothing to do with mortgage rates, home prices, or inventory levels.

While everyone’s celebrating President Trump’s call for a 10% credit card interest rate cap, very few people understand the financial landmine this creates for anyone planning to buy a home in Ellis County, Johnson County, or anywhere across the Dallas-Fort Worth Metroplex in 2026.

Here’s the intelligence: When credit card companies respond to this rate cap by slashing credit limits(and they will), thousands of qualified North Texas homebuyers could suddenly find themselves unable to get a mortgage approval. Not because they did anything wrong. Not because their financial situation changed. But because the math that determines whether you can buy a home is about to shift beneath your feet.

This is exactly the kind of chaos-creates-opportunity moment that separates informed buyers from those who get left behind. So let’s break down what’s really happening, what it means for your 2026 homebuying strategy, and, most importantly, what you need to do right now to protect yourself.

---

What’s Actually Happening with the Credit Card Rate Cap

Let’s establish the facts first, because there’s a lot of confusion out there.

On January 9, 2026, President Trump posted on Truth Social calling for credit card companies to voluntarily cap interest rates at 10%, with a deadline of January 20, his second inauguration anniversary. Trump wrote that he was calling for a one-year cap, saying Americans would no longer be “ripped off” by credit card companies charging rates between 20% and 30%.

Here’s where we stand as of January 28, 2026:

The Current Reality:

• The cap is NOT currently law and has no binding legal authority, most banks and card issuers have largely kept their rates unchanged
• A bipartisan bill sponsored by senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) last year would have put a temporary 10% cap on credit card interest rates, but the bill hasn’t gone anywhere
• GOP lawmakers have been urging the president to address the high cost of living for Americans as it remains a top concern for voters, especially going into the midterm elections later this year
• The average credit card interest rate in the U.S. fell to 23.79% in January, marking the lowest level since March 2023

Why This Matters for Homebuyers:

The credit card industry’s response to this proposal, whether it becomes law or not, is what creates the mortgage qualification nightmare. And their response is already crystal clear.

Bank executives were sent scrambling over the weekend after President Trump declared late Friday that American credit card companies would be subject to a 10% cap, with stock shares of large banks including Citigroup, JPMorgan Chase, Wells Fargo and Bank of America dropping between 1% and 3%.

The banking industry has been unanimous in their warnings: If forced to cap rates at 10%, they will dramatically reduce credit access, slash credit limits, and tighten underwriting standards across the board.

A coalition of trade groups representing banks argued in a statement that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on credit cards.

Translation: They’re going to cut credit limits and close accounts, particularly for anyone with a credit score below 740.

And that’s where your mortgage approval goes from “pre-approved” to “application denied” in about 48 hours.

---

The Mortgage Qualification Math That’s About to Change

Here’s what most North Texas homebuyers don’t understand: Your ability to get approved for a mortgage isn’t just about your credit score or your income. It comes down to two critical ratios that mortgage underwriters scrutinize with a microscope:

1. Credit Utilization Ratio
2. Debt-to-Income (DTI) Ratio

Let me show you exactly how credit card limit reductions torpedo both of these numbers, and why that matters for your ability to buy a home in Waxahachie, Midlothian, Mansfield, or anywhere else in our market.

Understanding Credit Utilization: The Hidden Credit Score Killer

Your credit utilization ratio measures what percentage of your available credit you’re currently using. It’s calculated as:

Credit Utilization = (Total Credit Card Balances ÷ Total Credit Limits) × 100

Credit scoring models, the algorithms that determine whether you get approved and at what interest rate, weigh this metric heavily. Credit utilization accounts for roughly 30% of your FICO score.

Here’s a real North Texas example:

You’re planning to buy a home in Midlothian. You have three credit cards:

• Chase Freedom: $10,000 limit, $2,000 balance
• Capital One: $12,000 limit, $1,500 balance
• Discover: $8,000 limit, $1,000 balance

Your current situation:

• Total credit limits: $30,000
• Total balances: $4,500
• Credit utilization: $4,500 ÷ $30,000 = 15%

That’s a solid utilization ratio. Mortgage lenders love to see utilization below 30%, with anything under 10% considered excellent.

Now here’s what happens when credit card companies respond to the rate cap:

Your credit card issuers decide to reduce limits across the board. They cut your combined limit from $30,000 to $15,000, a 50% reduction that industry analysts predict would affect millions of cardholders.

• New total credit limits: $15,000
• Same balances: $4,500 (you didn’t charge anything new)
• New credit utilization: $4,500 ÷ $15,000 = 30%

Overnight, your utilization doubled. You didn’t spend a single extra dollar. You didn’t miss a payment. You didn’t do anything wrong.

But now you’re sitting at the edge of acceptable utilization, and if you’re a few hundred dollars higher, you’re in danger zone territory.

The Credit Score Impact:

This sudden utilization spike could drop your credit score by 20-40 points, sometimes more. And in mortgage lending, those points matter, a lot.

Let’s look at what that means in real dollars on a typical Ellis County home purchase.

How Credit Scores Translate to Mortgage Costs in North Texas

I’m going to show you actual numbers based on current North Texas mortgage rates for a $400,000 home purchase, which is right around the median price point for new construction in Midlothian and newer homes in Waxahachie.

30-Year Fixed Mortgage on $400,000 (Current North Texas Rates):

Credit Score	Approximate APR	Monthly Payment	Total Interest (30 Years)	Additional Cost vs. 760+ Score
760-850	6.77%	$2,600	$536,000	Baseline
700-759	7.04%	$2,673	$562,280	+$26,280
680-699	7.18%	$2,710	$575,600	+$39,600
660-679	7.26%	$2,731	$583,160	+$47,160
640-659	7.40%	$2,768	$596,480	+$60,480
620-639	7.56%	$2,812	$612,320	+$76,320

A credit limit reduction that drops your score from 700 to 660 doesn’t just make approval harder, it costs you nearly $50,000 in additional interest over the life of your loan.

That’s not fear-mongering. That’s math.

And we’re not done yet, because the credit limit cuts create a second problem that’s even more immediate and potentially more devastating to your mortgage approval.

The Debt-to-Income Ratio Trap

Your DTI ratio is the percentage of your gross monthly income that goes toward debt payments. Mortgage lenders use this to determine whether you can afford to take on a home loan on top of your existing obligations.

For many loans, the maximum DTI ratio is 43 percent, though it’s helpful to understand how different ranges can impact your chances of approval when applying for a mortgage.

The formula:

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Here’s what gets included in “total monthly debt payments”:

• Credit card minimum payments (not just balances, minimum monthly payments)
• Auto loans
• Student loans
• Personal loans
• Child support/alimony
• Your proposed mortgage payment (including principal, interest, taxes, insurance, and HOA)

Critical insight: Mortgage underwriters count your credit card minimum monthly payment, not your total balance. And when credit card companies reduce your limit while your balance stays the same, your utilization shoots up, and so does your minimum payment.

Real North Texas DTI Example:

You earn $6,500 gross monthly income. You’re looking at homes in Red Oak or Waxahachie in the $350,000-$375,000 range.

Your current monthly debt obligations:

• Credit cards minimum payments: $180
• Car payment: $425
• Student loan: $250
• Proposed mortgage payment (with taxes/insurance): $1,950

Your DTI calculation:
($180 + $425 + $250 + $1,950) ÷ $6,500 = 43.8% DTI

You’re sitting right at the edge of conventional loan approval territory, but you could potentially qualify, especially for an FHA loan.

Now credit card companies cut your limits:

Your credit card companies reduce your combined limit by 50%. Your balances haven’t changed, but now you’re sitting at 30% utilization instead of 15%. Most credit card issuers calculate minimum payments as 1-3% of your balance, but when utilization rises, some issuers increase minimum payments or trigger higher payment requirements.

Let’s say your minimum payment increases from $180 to $250/month, just a $70 increase.

Your new DTI:
($250 + $425 + $250 + $1,950) ÷ $6,500 = 44.8% DTI

That 1-point DTI increase just pushed you out of many conventional loan programs and into more restrictive (and more expensive) lending options, or potentially out of qualification altogether.

North Texas Mortgage DTI Requirements by Loan Type

Understanding DTI thresholds for different loan products is critical for North Texas buyers:

Conventional Loans:

• Preferred DTI: ≤ 36%
• Maximum DTI: 43-45% (some lenders will go to 49.9% with strong compensating factors)
• A DTI ratio below 36% demonstrates to lenders that you have a manageable level of debt, while DTI from 36% to 41% indicates you have a manageable level of debt and earn enough income to cover a new mortgage payment

FHA Loans:

• Preferred DTI: ≤ 43%
• Maximum DTI: 50-56.99% with compensating factors
• FHA loans have looser DTI requirements, allowing for a front-end DTI of up to 31% and back-end DTI of up to 43 percent, and it’s even possible to qualify for an FHA loan with a DTI of up to 50% if you have some compensating factors
• This is the most popular loan type for first-time buyers in Ellis and Johnson Counties

VA Loans:

• Preferred DTI: ≤ 41%
• Maximum DTI: Up to 60% (for eligible veterans and active military)
• No official minimum credit score required by VA, though most lenders want 580-620

USDA Loans:

• Preferred DTI: ≤ 41%
• Maximum DTI: 41% (strict, though some lenders approve slightly higher with compensating factors)
• For automated approvals, USDA loans use standard DTI baselines with front-end ratio typically required to be 29% or less and back-end ratio at 41% or less
• Great option for eligible rural properties in parts of Ellis County

Jumbo Loans:

• Preferred DTI: ≤ 43%
• Maximum DTI: ~43% (stricter requirements for high-value properties)
• Often require credit scores of 700+

The difference between a 43% DTI and a 45% DTI might sound trivial. But it’s the difference between getting approved and getting denied.

Credit card limit reductions, triggered by policy changes you have zero control over, can push you across that line in a heartbeat.

---

Why 2026 is a Critical Window for North Texas Homebuyers

Here’s where this gets strategic.

After years of extreme market conditions, bidding wars, historically low inventory, rate volatility, 2026 represents the most balanced and opportunity-rich North Texas housing market we’ve seen in half a decade.

The 2026 North Texas Market Landscape

Increased Inventory:
One of the most notable changes heading into 2026 is increased housing inventory across North Texas, with more homes on the market giving buyers options they haven’t had in years.

In communities across Ellis County, Johnson County, and Tarrant County, buyers are finally seeing:

• More selection in established neighborhoods
• Reduced competition (fewer bidding wars)
• Real negotiation leverage with sellers
• Time to conduct proper due diligence

Stabilizing Prices:
Fort Worth’s housing market remains stable with prices falling slightly and the amount of inventory going up, while for DFW specifically, Realtor.com projects approximately 1.8% appreciation in 2026.

This isn’t a market crash it’s normalization. Sellers are pricing realistically. Buyers have room to negotiate. It’s the Goldilocks scenario.

Improving Mortgage Rates:
The National Association of Realtors forecasts this year will see a 14% jump in home sales, with the biggest change coming in 2026 being the decline in mortgage rates continuing toward 6%.

Rates in the low-to-mid 6% range represent a meaningful improvement from the 7-7.5% territory we saw in 2023-2024. Combined with 2026’s conforming loan limit increase to $832,750, more North Texas buyers can access conventional financing.

Economic Fundamentals:
For North Texas specifically, our structural advantages, corporate relocations, economic diversification, relative affordability, and sustained population growth, position us to outperform most major markets.

DFW continues adding jobs, attracting companies, and drawing relocators from higher-cost states. That sustained demand supports long-term home values even as the market balances.

The Ellis County Opportunity

If you’re looking at Waxahachie, Midlothian, Red Oak, or other Ellis County communities, you’re in the sweet spot.

Ellis County isn’t just “affordable DFW”, it’s the most strategically positioned growth market in the entire metroplex for the next decade, sitting directly south of Dallas County in the I-35E corridor that connects Dallas to Austin.

Major developments, infrastructure improvements, corporate relocations to southern DFW, and commute-time reductions are setting up Ellis County for sustained appreciation while maintaining affordability relative to central Tarrant and Dallas Counties.

The Bottom Line:

2026 is the window. More inventory. Realistic pricing. Lower rates. Strong fundamentals.

But that window only exists if you can actually qualify for a mortgage.

And that’s where the credit card interest rate cap creates a hidden vulnerability that could slam that window shut for thousands of otherwise-qualified North Texas buyers.

---

What You Need to Do Right Now to Protect Your Homebuying Power

I’m not here to create panic. I’m here to give you the intelligence and the action plan you need to stay five steps ahead of this situation.

If you’re planning to buy a home in 2026, whether you’re six months out or actively looking this quarter, here’s your strategic checklist.

Immediate Actions (This Week)

1. Get Pre-Approved, Not Pre-Qualified – Immediately

There’s a difference between pre-qualification and pre-approval, and in this environment, it matters.

Pre-qualification is a soft assessment based on information you provide. It doesn’t involve pulling your credit or verifying your income/assets. It’s essentially a lender saying “yeah, you might qualify.”

Pre-approval means a lender has:

• Pulled your credit reports
• Verified your income and employment
• Reviewed your assets and bank statements
• Issued a conditional approval letter stating what you qualify for

Getting pre-approved right now, before any credit limit reductions hit, locks in your qualification based on your current credit profile.

North Texas Pre-Approval Timeline:

• Basic pre-approval: 24 hours to 10 days
• Full underwriting review: 5-10 business days
• Pre-approval validity: 60-120 days (90 days is typical)

Pro tip: Get pre-approved 3-6 months before your planned purchase date. This gives you time to address any issues that surface and protects you if credit conditions change.

Who to contact for pre-approval:

I work with two outstanding North Texas lenders who understand this market and can navigate these credit policy uncertainties:

• Denise Donoghue, The Mortgage Nerd – Specializes in first-time buyers and complex credit situations
• Andrew Bryan, Miramar Mortgage – Expert in conventional, FHA, VA, and USDA programs for Texas buyers

2. Pull Your Credit Reports and Check for Errors

You’re entitled to free credit reports from all three bureaus, Experian, Equifax, and TransUnion, through AnnualCreditReport.com.

Pull all three reports and review them carefully for:

• Accounts that aren’t yours (mixed files or fraud)
• Incorrect balance information
• Late payments you didn’t make
• Outdated negative information (most items should drop off after 7 years)
• Duplicate accounts

Dispute any errors through the credit bureau’s online dispute process. This can take 30-45 days to resolve, which is why you need to do it now, not when you’re under contract on a home.

Even small errors, like an old utility bill showing as unpaid when you settled it years ago, can drag down your score and complicate your approval.

3. Calculate Your Current Credit Utilization and DTI

Before credit card companies make any changes, you need to know your baseline numbers.

Credit Utilization Check:

• List all credit cards with their current limits and balances
• Calculate the utilization ratio for each card individually (balance ÷ limit)
• Calculate your overall utilization across all cards

If any single card is above 30% utilization, prioritize paying it down. Ideally, you want to be under 10% on each card and overall.

DTI Check:

• Calculate your gross monthly income (before taxes)
• List all recurring monthly debt payments (credit cards, auto loans, student loans, personal loans, child support, etc.)
• Add your estimated mortgage payment (use an online mortgage calculator to estimate principal, interest, taxes, insurance, and HOA if applicable)
• Divide total monthly debts by gross monthly income

Compare your DTI to the loan program thresholds I outlined earlier. If you’re close to the limit for your target loan type, you need to take aggressive action to bring it down.

4. Set Up Weekly Credit Monitoring

Most credit card issuers and banks now offer free credit score tracking and alerts. Enable these notifications so you know immediately if:

• Your credit limit changes
• Your credit score drops
• New accounts appear on your credit report
• Inquiries are made

Weekly monitoring lets you spot problems quickly and respond before they snowball.

Many banks also offer FICO score simulators that show you how specific actions (paying down a card, opening a new account, etc.) would affect your score. Use these tools strategically.

---

Strategic Financial Moves (Next 30-90 Days)

1. Pay Down Credit Card Balances Aggressively

If you’re serious about buying a home in 2026, credit card debt reduction should be your highest financial priority for the next 90 days.

Strategic Paydown Approach:

• Target high-utilization cards first: Focus on any card above 30% utilization. Get it below 10% if possible.
• Pay strategically before statement closing dates: Your credit card reports your balance to the credit bureaus on your statement closing date (not your payment due date). If you make a payment before that date, a lower balance gets reported, immediately improving your utilization ratio.
• Keep cards open after paying them off: Closing a paid-off card reduces your total available credit, which increases utilization on your remaining cards. Keep the card or cut it up if you want, but leave the account open.

Example:

You have a card with a $5,000 limit and a $2,000 balance (40% utilization). Your statement closes on the 15th of each month.

If you pay down $1,000 on the 10th, your statement will show a $1,000 balance (20% utilization), and that’s what gets reported to the credit bureaus. Your score improves before your due date even arrives.

Many mortgage professionals recommend beginning aggressive paydown at least six months before applying for a home loan so the improved utilization has time to be reflected in your scores across multiple reporting cycles.

2. Avoid New Credit Applications Entirely

Once you’ve committed to buying a home in 2026, press pause on all other credit activity.

Do NOT:

• Apply for new credit cards, even if a store offers you 20% off your purchase
• Finance a vehicle, furniture, appliances, or any other purchase
• Co-sign loans for family members or friends
• Accept credit limit increases (these can sometimes trigger hard inquiries)

Each new credit inquiry can temporarily lower your score by 3-5 points. Multiple inquiries signal risk to lenders.

More importantly, new debt directly increases your DTI ratio. Finance a $30,000 vehicle, and you’ve just added $500+/month to your debt obligations. That could push you right out of mortgage qualification range.

3. Have a Conversation with Your Mortgage Lender About Credit Volatility

Schedule a consultation with your lender (or potential lender) and ask specific questions about how they handle credit changes during the mortgage process:

• What happens if my credit limit is reduced after pre-approval but before closing?
• How often will you re-check my credit during the transaction?
• At what points in the process (pre-approval, full application, before closing) will you re-run my credit?
• Do you offer rapid rescore services if I need to correct errors quickly?
• What specific changes would invalidate my pre-approval?

Understanding your lender’s policies up front helps you avoid surprises when you’re under contract.

Some lenders will work with you if credit limit reductions occur, especially if you can demonstrate that the reduction wasn’t due to missed payments or risky behavior on your part. But you need to have that conversation early.

4. Build Cash Reserves

Cash reserves serve two strategic purposes:

As a compensating factor: Lenders may accept slightly higher DTI ratios if you demonstrate strong savings. Having 3-6 months of housing expenses in reserves shows you can handle unexpected costs and still make mortgage payments.

As protection: An emergency fund keeps you from having to turn to high-interest credit cards if unexpected expenses arise during your home search or while you’re in escrow.

For many underwriters, significant cash reserves can offset borderline DTI ratios or credit profiles. If you’re sitting at 44% DTI but have $25,000 in liquid savings, that changes the risk calculus in your favor.

---

North Texas-Specific Strategic Advantages

If credit policy changes tighten qualification standards or reduce your buying power, location strategy and program knowledge become even more critical.

Leverage Texas Down Payment Assistance Programs

Texas offers some of the most robust down payment assistance programs in the country. These programs can help you:

• Reduce your out-of-pocket cash needed at closing
• Qualify for a mortgage even if your savings are limited
• Potentially buy sooner than you thought possible

Major Statewide Programs:

Texas State Affordable Housing Corporation (TSAHC):

• Offers down payment assistance grants and deferred-payment second liens
• Can be combined with FHA, VA, USDA, and conventional loans
• Programs like the Homes for Texas Heroes program serve teachers, firefighters, EMS, law enforcement, and correctional employees

My First Texas Home / My Choice Texas Home (TDHCA):

• Provides 30-year, 0% interest second liens for down payment and closing costs
• No monthly payment required, repaid when you sell, refinance, or pay off the first mortgage
• Income and purchase price limits apply

5 Star Texas Advantage (Southeast Texas Housing Finance Corporation):

• Offers up to 5% of the loan amount for down payment and closing costs
• Often forgivable after living in the home for a set period (typically 10 years)
• Available for first-time buyers and repeat buyers in some cases

Federal Home Loan Bank of Dallas HELP Program:

• Committed millions in grants for 2026 to assist first-time homebuyers
• Provides up to $22,500 in down payment and closing cost assistance
• Works through participating member lenders

Local Fort Worth/Tarrant County Program:

Fort Worth Homebuyer Assistance Program:

• Provides up to $25,000 for down payment and closing costs
• Often forgivable after 10 years of owner occupancy
• Income limits apply (generally for households earning 80% or less of Area Median Income)

Texas consistently ranks near the top nationally for down payment assistance availability, with the average benefit in five figures. Many North Texas buyers qualify and never realize these programs exist.

If credit tightening reduces your qualification amount or requires a larger down payment, these programs can bridge the gap and keep you in the market.

Strategic Location Selection: Ellis and Johnson Counties

If credit concerns limit your qualification amount, geographic strategy becomes critical.

Ellis County offers one of the best value propositions in the entire DFW Metroplex right now:

• Lower price points: Comparable or better homes for $30,000-$60,000 less than similar properties in central Tarrant County
• New construction availability: At many price points, you can get new construction or near-new homes for what you’d pay for 20-year-old inventory closer to Fort Worth or Dallas
• Strong fundamentals: Major developments, infrastructure investment, and continued DFW growth spillover create appreciation potential
• Quality of life: Excellent schools (Midlothian ISD, Waxahachie ISD, Red Oak ISD), low crime, family-friendly communities

Johnson County offers similar advantages, particularly in:

• Burleson: Growing rapidly with strong job growth and new retail development
• Cleburne: More affordable entry point with historic charm and improving amenities
• Joshua: Smaller-town feel with proximity to Fort Worth

If a credit limit reduction cuts $25,000-$40,000 from your buying power, shifting your search from Arlington or Mansfield to Waxahachie or Midlothian could keep you in the same quality of home, just in a location that’s strategically positioned for growth.

That’s not settling. That’s smart strategy.

---

What NOT to Do During This Period

Strategic action is critical, but avoiding common mistakes is equally important.

Critical Mistakes That Will Sabotage Your Approval

1. Don’t Close Credit Card Accounts

Even if you’ve paid off a card completely, do not close the account in the year before you plan to buy a home.

Closing an account:

• Reduces your total available credit
• Immediately increases your utilization ratio on remaining cards
• Shortens your average credit history length
• Can drop your score by 20-50+ points

If you want to simplify your finances, cut up the physical card and store it in a drawer. Leave the account open with a $0 balance. Once you’ve closed on your home and moved in, you can reevaluate whether to close accounts.

2. Don’t Make Large Purchases on Credit

The temptation to furnish your future home, upgrade your wardrobe for the move, or buy a new vehicle is strong. Resist it until after you close.

Large purchases on credit:

• Spike your credit utilization
• Increase your minimum payments and DTI
• Can trigger re-underwriting by your lender, leading to delays or denials

I’ve seen buyers lose their mortgage approval three days before closing because they financed $8,000 worth of furniture at Ashley Homestore. Don’t let that be you.

3. Don’t Ignore Communication from Your Lender

During the mortgage process, your lender may request:

• Updated bank statements
• Recent pay stubs
• Letters of explanation for deposits or credit inquiries
• Proof of income or employment verification

Respond quickly, ideally within 24 hours, with complete documentation.

Underwriters often re-check credit in the days before closing. If they see new inquiries, changed credit limits, or late payments, it can derail your approval at the finish line.

Quick, clear communication keeps your transaction on track.

4. Don’t Assume Pre-Approval Equals Final Approval

Pre-approval is powerful and necessary, but it’s conditional. Conditions typically include:

• Maintaining stable income through closing
• Not incurring new debt
• Keeping your credit profile stable
• Providing updated documentation as requested

Pre-approval says “you’re approved based on your current situation, assuming nothing changes.” If your credit limits get slashed and your DTI or credit score changes materially, your pre-approval can be revoked.

Think of pre-approval as your starting position. Your job is to maintain or improve that position all the way through closing.

---

Understanding Your Rights and Protections

As North Texas consumers navigate this uncertain credit policy landscape, it’s important to understand your legal protections.

Credit Limit Decrease Protections

If a credit card issuer reduces your limit:

You have the right to:

• Receive notice: Issuers must notify you of significant changes to your account terms
• Request an explanation: You can ask why the limit was reduced
• Appeal or request reconsideration: Many issuers will reevaluate if you’ve maintained strong payment history and low risk profile

Common reasons for limit reductions:

• Missed or late payments on any account
• High utilization across multiple cards
• Account inactivity (not using the card for extended periods)
• Overall deterioration in your credit profile
• Issuer’s internal risk assessment changes

If you receive notice of a limit reduction and you have a strong payment history, call the issuer’s reconsideration line. Explain your situation, emphasize your positive history, and ask them to maintain your current limit. Sometimes it works. Sometimes it doesn’t. But it’s worth the phone call.

Fair Lending and Fair Housing Protections

Real estate professionals and mortgage lenders must comply with:

The Fair Housing Act:
Prohibits discrimination in housing-related activities based on race, color, religion, sex, familial status, national origin, and disability. This includes mortgage lending and real estate services.

The Equal Credit Opportunity Act (ECOA):
Requires lenders to evaluate you based on your creditworthiness, not discriminatory factors. Lenders cannot discriminate based on race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.

RESPA (Real Estate Settlement Procedures Act):
Regulates how real estate settlement services are marketed and paid for. This is why I mention multiple lender options rather than steering you to just one, RESPA prohibits kickbacks and requires me to offer you multiple choices. As a good agent, I want you to know that you always have options and I want to give you the best options available

If you believe you’ve been unfairly denied credit or treated differently due to a protected characteristic, you have the right to file complaints with:

• The Consumer Financial Protection Bureau (CFPB)
• The Department of Housing and Urban Development (HUD)
• Your state attorney general’s office

---

How Real Estate Professionals Should Be Educating Clients

As a North Texas REALTOR®, I believe agents have a responsibility to educate clients about factors affecting their homebuying capacity, even when those factors fall outside the walls of the house itself.

The Agent’s Educational Role

Real estate professionals should:

Provide factual information: Share objective intelligence about credit policies, market conditions, and lending requirements without creating unnecessary fear.

Connect clients to trusted professionals: Maintain relationships with local mortgage professionals, financial advisors, and credit experts who can provide specialized guidance.

Encourage early preparation: Recommend checking credit, paying down debt, and securing pre-approval well before serious house hunting begins.

Offer resources, not financial advice: Provide general guidance and direct clients to licensed professionals when specialized financial, legal, or credit questions arise.

NAR Code of Ethics Considerations

Under the National Association of REALTORS® Code of Ethics, REALTORS® have obligations including:

• Staying informed on real estate matters and conditions affecting the market (Article 1)
• Protecting and promoting the interests of clients while treating all parties honestly (Articles 1 and 2)
• Avoiding exaggeration, misrepresentation, or concealment of pertinent facts (Article 2)

Discussing how potential credit policy changes might affect a client’s ability to buy falls squarely within that obligation, so long as the agent:

• Sticks to accurate, factual information
• Avoids steering or discrimination
• Defers specialized financial questions to licensed professionals
• Provides balanced perspective rather than fear-mongering

This article is educational intelligence, not financial advice. If you have questions about your specific credit situation, talk to a qualified mortgage professional or financial advisor.

---

The Bottom Line: Chaos Creates Opportunity For Those Who See It Coming

The 10% credit card interest rate cap proposal remains uncertain. It may pass. It may fail. It may pass in modified form. But the banking industry’s response, credit limit reductions, account closures, tighter underwriting, is predictable and already being communicated by industry executives.

Here’s what you need to remember:

1. The cap is NOT currently law, but the threat alone creates risk of industry response that affects your mortgage qualification
2. Credit limit reductions increase your utilization ratio, potentially lowering your credit score and weakening your mortgage terms
3. Higher minimum payments raise your DTI, potentially pushing you outside the maximum allowed for your target loan program
4. The 2026 North Texas market offers a rare window of opportunity: more inventory, balanced competition, stabilizing rates, and strong fundamentals
5. Proactive action NOW protects you: Get pre-approved immediately, monitor credit weekly, pay down balances aggressively, avoid new debt, and leverage down payment assistance

The strategic advantage goes to informed buyers who act decisively.

While other buyers sit on the sidelines confused by headlines, you can position yourself five steps ahead by:

• Getting pre-approved before credit conditions tighten
• Understanding your utilization and DTI numbers cold
• Building cash reserves as insurance against unexpected changes
• Leveraging Texas’s exceptional down payment assistance programs
• Focusing your search on high-value, high-growth North Texas markets like Ellis and Johnson Counties

This is exactly the kind of chaos-creates-opportunity moment that separates buyers who achieve their goals from those who get left behind.

The North Texas market is balanced. Rates are reasonable. Inventory is available. Fundamentals are strong.

Don’t let a credit policy change that you have zero control over derail your homeownership plans when the market conditions are finally working in your favor.

---

Take Action: Your 2026 North Texas Home Purchase Strategy Session

If you’re planning to buy a home in Ellis County, Hill County, Johnson County, or the greater Dallas-Fort Worth area in 2026, let’s build a game plan that accounts for this credit environment and positions you for success.

As a North Texas real estate professional focused on market intelligence, I help buyers:

• Understand how credit, DTI, and lending policy changes impact their buying power
• Connect with reputable local lenders (Denise Donoghue at The Mortgage Nerd and Andrew Bryan at Miramar Mortgage) who can navigate changing credit conditions
• Access Texas down payment assistance programs that many buyers don’t realize they qualify for
• Identify neighborhoods and new construction communities in Ellis County and beyond that align with their budget, lifestyle, and long-term investment goals
• Track major developments and infrastructure improvements that create appreciation opportunities

Let’s get ahead of this together.

The buyers who win in 2026 will be the ones who see around corners, understand what’s coming, and take strategic action before the crowd figures it out.

That’s the North Texas Market Insider advantage.

---

Bobby Franklin, REALTOR®
Legacy Realty Group – Leslie Majors Team
📲 214-228-0003 | northtexasmarketinsider.com

---

This article provides educational information about credit policy developments, mortgage qualification factors, and North Texas real estate market conditions. It is not financial, legal, or credit advice. Always consult with licensed mortgage professionals, financial advisors, and attorneys regarding your specific circumstances. The author adheres to the Fair Housing Act, RESPA, the NAR Code of Ethics, and all applicable Texas real estate advertising regulations.