What Credit Score Do You Need to Buy a House?
Your credit score is one of the biggest factors in whether you qualify for a mortgage and what interest rate you're offered. The minimum needed varies by loan type, and while you can buy a home with a fairly modest score, a higher one can meaningfully lower your monthly payment. Here's how it breaks down.
Typical minimum scores by loan type
| Loan type | Typical minimum score |
|---|---|
| Conventional loan | Around 620 |
| FHA loan (3.5% down) | Around 580 |
| FHA loan (10% down) | As low as 500 in some cases |
| VA loan (eligible veterans) | No set minimum; lenders often want ~620 |
| USDA loan (eligible rural) | Often around 640 |
These are general guidelines, not hard rules — individual lenders set their own requirements ("overlays"), so one may approve a score another would decline.
Why a higher score saves you money
Qualifying is only half the story. Lenders reserve their best interest rates for borrowers with strong credit, and even a fraction of a percentage point matters over a 30-year loan. On a large mortgage, the difference between a "fair" score and an "excellent" one can add up to tens of thousands of dollars in interest across the life of the loan. So improving your score before you apply isn't just about getting approved — it's about getting a cheaper loan.
A real example: how score affects your rate
Take a $300,000, 30-year mortgage. A borrower with a 760+ score might lock in a rate around 6.5%, for a payment near $1,896/month. A borrower with a 640 score on the exact same loan might be quoted closer to 7.5%, pushing the payment to roughly $2,098/month — about $200 more every month, and over $70,000 more in total interest across the life of the loan. Same house, same loan amount, same lender — the only difference is the score.
Simple ways to improve your score before applying
- Pay every bill on time. Payment history is the single biggest factor; even one late payment can hurt.
- Lower your credit-card balances. Using a smaller share of your available credit (your "utilization") helps your score.
- Don't open new credit right before applying. New accounts and hard inquiries can temporarily ding your score.
- Check your credit report for errors. Mistakes are common; disputing them can give your score a quick lift.
- Keep old accounts open. A longer credit history generally helps.
Improving a score takes time, so it's worth starting several months before you plan to apply.
What actually makes up your credit score
FICO scores, the model most mortgage lenders use, weigh five factors: payment history (35%), amounts owed / credit utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Payment history and utilization together make up nearly two-thirds of your score, which is why the improvement tips above focus almost entirely on those two levers — they move the needle the fastest.
Frequently asked questions
What credit score do you need to buy a house?
The minimum depends on the loan type. Conventional loans typically require a 620+, FHA loans require a 580+ (or 500 with 10% down), and VA and USDA loans have no official minimum, though most lenders prefer 620+.
Does a higher credit score get you a lower mortgage rate?
Yes. Borrowers with scores of 760 or higher typically qualify for the best rates. Even a small rate difference of 0.5% can save tens of thousands of dollars over the life of a 30-year loan.
How can I improve my credit score before buying a house?
Pay all bills on time, pay down credit card balances to below 30% of their limit, avoid opening new credit accounts, and don't close old accounts. These steps can improve your score within a few months.
Which credit score do mortgage lenders actually use?
Most mortgage lenders pull FICO scores from all three major bureaus — Equifax, Experian, and TransUnion — and use the middle of the three scores to qualify you, not an average and not the highest.
How long does it take to raise a credit score before buying a house?
Small improvements, like paying down a credit card balance, can show up within one billing cycle (30–45 days). Bigger jumps — recovering from a late payment or building a thin credit file — typically take several months to a year of consistent on-time payments and low utilization.
The bottom line
You don't need perfect credit to buy a house — many buyers qualify with scores in the 600s, and some FHA buyers lower. But the higher your score, the better the rate and the less you'll pay overall. If your score is on the edge, a few months of focused effort before applying can pay off for the entire life of your loan.
This article is general information, not financial advice. Credit requirements vary by lender and change over time — a licensed lender can tell you what you qualify for.