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.
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.
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.