What Credit Score Do You Need to Buy a House?

You’re thinking about buying a home, and somewhere in the back of your mind, a number is nagging at you. Your credit score. Maybe you checked it recently and felt encouraged. Maybe you checked it and felt a knot in your stomach. Either way, you’re wondering: Is my score good enough?

The short answer: you can probably get a mortgage with a lower score than you think. The longer answer is that your credit score affects not just whether you qualify, but how much you’ll pay every single month for the next 15 to 30 years.

Let’s break down exactly what you need, what it costs you, and how to improve it on a realistic timeline.

Credit Score Requirements by Loan Type

Different mortgage programs have different minimum requirements. Here’s the landscape as of 2026:

Conventional Loans (Fannie Mae / Freddie Mac)

• Minimum credit score: 620
• Recommended for best rates: 740+
• Down payment: As low as 3% for first-time buyers, 5% for others
• PMI: Required if down payment is less than 20%; removable once you reach 20% equity

Conventional loans are the most common mortgage type, accounting for about 72% of all mortgage originations according to the Mortgage Bankers Association (MBA). They typically offer the best rates for borrowers with strong credit — but the 620 minimum is a firm floor. Most lenders won’t consider conventional applications below that threshold.

FHA Loans (Federal Housing Administration)

• Minimum credit score: 580 with 3.5% down; 500-579 with 10% down
• Recommended for best rates: 680+
• Down payment: 3.5% (with 580+ score) or 10% (with 500-579 score)
• Mortgage insurance: Required for the life of the loan (both upfront and annual premiums)

FHA loans are specifically designed for borrowers with lower credit scores and smaller down payments. The FHA doesn’t lend money directly — it insures loans made by FHA-approved lenders, which reduces the lender’s risk. The trade-off is mortgage insurance that doesn’t go away. The upfront mortgage insurance premium (UFMIP) is 1.75% of the loan amount, and the annual premium ranges from 0.45% to 1.05% depending on the loan term and down payment.

According to the FHA’s annual report to Congress, the average credit score for FHA purchase borrowers in fiscal year 2024 was approximately 680 — well above the 580 minimum.

VA Loans (U.S. Department of Veterans Affairs)

• Minimum credit score: No official minimum from the VA
• Typical lender minimum: 620 (varies by lender)
• Down payment: 0% — no down payment required
• PMI: None; a one-time VA funding fee applies instead (1.25% to 3.3% of loan amount)

VA loans are available to eligible active-duty service members, veterans, and surviving spouses. The VA itself does not set a minimum credit score, but most VA-approved lenders require at least 620. VA loans are often the best deal available for eligible borrowers — no down payment, no PMI, and competitive interest rates.

USDA Loans (U.S. Department of Agriculture)

• Minimum credit score: No official minimum from USDA
• Typical lender minimum: 640
• Down payment: 0% — no down payment required
• Mortgage insurance: Annual fee of 0.35% of the loan balance, plus upfront guarantee fee of 1%

USDA loans are for buyers purchasing in eligible rural and suburban areas (which are more places than you’d think — check the USDA’s eligibility map at rd.usda.gov). Income limits apply, typically capped at 115% of the area median income.

Jumbo Loans

• Minimum credit score: 700-720 (varies by lender)
• Down payment: Typically 10-20%
• PMI: Varies by lender

Jumbo loans exceed the conforming loan limits set by the FHFA ($806,500 in most areas for 2025, higher in designated high-cost areas). Because these loans can’t be sold to Fannie Mae or Freddie Mac, lenders take on more risk and require higher credit scores, larger down payments, and more extensive documentation.

Quick Reference: Credit Score Minimums

Loan Type	Minimum Score	Best Rates At	Down Payment
Conventional	620	740+	3-20%
FHA	580 (3.5% down)	680+	3.5-10%
VA	~620 (lender-set)	700+	0%
USDA	~640 (lender-set)	680+	0%
Jumbo	700-720	760+	10-20%

How Your Credit Score Affects Your Interest Rate

Meeting the minimum score gets you in the door, but here’s where the real money is: your credit score directly determines the interest rate a lender offers you. And small rate differences cost (or save) you a staggering amount of money over time.

Rate Estimates by Credit Score Range

According to myFICO.com’s loan savings calculator, which uses national average rate data, here’s how credit scores translate to mortgage rates on a 30-year fixed $350,000 loan (rates are illustrative and fluctuate with market conditions):

FICO Score Range	Estimated Rate	Monthly Payment	Total Interest Paid
760-850	6.25%	$2,155	$426,013
700-759	6.47%	$2,202	$442,620
680-699	6.65%	$2,240	$456,503
660-679	6.86%	$2,285	$472,643
640-659	7.29%	$2,377	$505,819
620-639	7.84%	$2,496	$548,440

The gap between a 760 score and a 620 score: $341 per month, or $122,427 over the life of the loan.

Read that number again. A credit score difference of 140 points can cost you over $122,000 in additional interest. This is why improving your credit score before applying for a mortgage is one of the highest-return financial moves you can make.

Use the Can I Afford This House calculator to see how different interest rates change your monthly payment at your specific price point.

What Credit Score Do Mortgage Borrowers Actually Have?

It’s helpful to know where you stand relative to other buyers. Here’s what the data shows:

According to the Federal Reserve Bank of New York’s quarterly report on household debt and credit, the median credit score for new mortgage originations has been approximately 770 in recent years. The 10th percentile (meaning 90% of borrowers score higher) sits around 660.

Experian’s 2024 data shows the average FICO score for approved mortgage borrowers at roughly 750.

These numbers are higher than the minimums because lenders price risk into their rates. Borrowers with higher scores get better rates, making them more likely to shop for and close on homes. But they also reflect the fact that the majority of buyers have built strong credit over time — it’s an achievable standard, not an outlier.

Which Credit Score Do Mortgage Lenders Use?

This trips up a lot of buyers. The credit score you see on your bank’s app, Credit Karma, or a free monitoring service is almost certainly not the same score your mortgage lender will use.

The FICO Score Versions

Most mortgage lenders use specific legacy versions of the FICO score:

• Equifax: FICO Score 5
• Experian: FICO Score 2
• TransUnion: FICO Score 4

These are older versions of the FICO scoring model. The scores you see on most free services use newer models (FICO Score 8, FICO Score 9, or VantageScore 3.0/4.0), which can differ by 20 to 40 points or more from the mortgage-specific versions.

The Middle Score Rule

Lenders pull your credit from all three bureaus and use the middle score. If your three scores are 720, 735, and 740, your qualifying score is 735. For joint applications, lenders use the lower of the two borrowers’ middle scores — which is why it’s worth checking both applicants’ credit well before applying.

How to See Your Mortgage-Specific Score

You can purchase your FICO mortgage scores directly from myFICO.com, which is the only consumer service that provides the specific score versions used in mortgage underwriting. The one-time three-bureau report costs about $40 to $60 and is worth the expense if you’re within six months of applying.

How to Improve Your Credit Score Before Buying

If your score isn’t where you want it, here’s the good news: meaningful improvement is possible in three to twelve months, depending on what’s dragging your score down.

The Five FICO Score Factors

Understanding what drives your score helps you prioritize:

1. Payment history (35%): Whether you’ve paid bills on time. The single largest factor.
2. Amounts owed / credit utilization (30%): How much of your available credit you’re using. Lower is better.
3. Length of credit history (15%): The average age of your accounts. Longer is better.
4. New credit (10%): Recent applications for new credit. Fewer is better.
5. Credit mix (10%): Having different types of credit (credit cards, auto loan, student loan). Modest impact.

Quick Wins (1-3 Months)

Pay down credit card balances. Credit utilization — the percentage of your available credit that you’re currently using — is the fastest lever you can pull. Going from 50% utilization to under 10% can boost your score by 30 to 50 points within one to two billing cycles.

The math: if you have a $10,000 total credit limit and carry $4,500 in balances, your utilization is 45%. Paying that down to $900 drops utilization to 9%. Credit bureaus update this data monthly when your card issuers report, so you’ll see the change within 30 to 60 days.

Dispute errors on your credit reports. According to a Federal Trade Commission (FTC) study, approximately one in five consumers had a verified error on at least one of their three credit reports. Request your free reports at AnnualCreditReport.com and review them carefully. Common errors include accounts that aren’t yours, incorrect balances, and debts reported past the seven-year reporting limit.

Become an authorized user. If a family member with a long-standing credit card account and excellent payment history adds you as an authorized user, their account history may appear on your credit report. This can boost your score by improving your average account age and utilization ratio. You don’t even need to use the card.

Medium-Term Improvements (3-6 Months)

Set every bill to autopay. Payment history is 35% of your score, and even one 30-day late payment can drop your score by 60 to 110 points, according to FICO. Set up autopay for at least the minimum payment on every account. Then pay more manually when you can.

Stop applying for new credit. Each hard inquiry can reduce your score by 5 to 10 points, and new accounts reduce your average account age. Avoid opening any new credit cards, store cards, or financing arrangements during this period.

Keep old accounts open. Even if you’ve paid off a credit card and don’t use it, don’t close it. The available credit helps your utilization ratio, and the account age helps your credit history length. If the card has an annual fee, call and ask to downgrade to a no-fee version.

Longer-Term Strategies (6-12 Months)

Establish a perfect payment record. After 12 months of on-time payments across all accounts, the impact of older negative marks starts to diminish. A late payment from three years ago hurts much less than one from three months ago.

Build a credit mix. If you only have credit cards, a small credit-builder loan from a credit union can add an installment account to your mix. These loans typically range from $500 to $2,000 and are designed specifically to build credit.

Address collections and charge-offs. Accounts in collections can remain on your report for seven years from the date of the original delinquency. Paying off a collection may not immediately improve your score under older FICO models (the record still exists), but newer scoring models used for non-mortgage purposes do give credit for paid collections. More importantly, many mortgage underwriters view paid collections more favorably than unpaid ones during the manual review process.

Realistic Improvement Timelines

Starting Point	Target	Typical Timeline
580-619	620+ (conventional eligible)	3-6 months
620-659	680+ (better rates)	3-6 months
660-699	740+ (best rates)	6-12 months
700-739	760+ (optimal pricing)	3-6 months

These timelines assume you’re actively working on the strategies above. The biggest jumps come from reducing credit utilization (fast) and building a clean payment history (slower but powerful).

Common Credit Score Myths About Home Buying

Myth: “You need a 700+ score to buy a house”

Reality: FHA loans are available with scores as low as 580 (3.5% down) or even 500 (10% down). Conventional loans start at 620. You don’t need a “good” score — but a higher score saves you significant money in interest.

Myth: “Checking your own credit hurts your score”

Reality: Checking your own credit is a “soft inquiry” and has zero impact on your score. Check as often as you want. Only “hard inquiries” from lenders affect your score, and even those are minor (5-10 points each).

Myth: “You should close old credit cards to improve your score”

Reality: Closing old accounts reduces your total available credit (increasing your utilization ratio) and can reduce your average account age. Both hurt your score. Keep old accounts open, even if unused.

Myth: “Paying off collections immediately boosts your score”

Reality: Under the FICO Score 5, 2, and 4 models used for mortgages, paying a collection account updates the “date of last activity,” which can actually lower your score temporarily. However, many lenders require collections to be paid before closing, and manual underwriting takes paid collections into account favorably. The situation is nuanced — consult a mortgage-savvy credit counselor for advice specific to your report.

Myth: “Rate shopping hurts your credit”

Reality: FICO and VantageScore models count multiple mortgage inquiries within a 14 to 45-day window as a single inquiry. You can (and should) apply with multiple lenders to compare rates without worrying about score damage.

What I’d Actually Do

If a friend asked me whether their credit score was good enough to buy a house, here’s what I’d say:

Check your actual mortgage score, not the free one. The score on Credit Karma or your bank app may be 20-40 points different from what a lender sees. Spend the $40-60 at myFICO.com to know your real number before you’re sitting across from a loan officer.

If you’re above 740, you’re in great shape. Apply for the mortgage and focus on the rest of the home buying process. Read our guide on how much house you can afford and avoid the common first-time buyer mistakes.

If you’re between 620 and 740, you can buy now — but consider whether three to six months of credit work could save you tens of thousands. Run the rate comparison table above with your specific loan amount. If waiting and improving your score by 40-60 points saves you $50,000 in interest, that’s a math problem worth solving.

If you’re below 620, an FHA loan at 580+ is your path — or give yourself six to twelve months to build your score above 620 for conventional eligibility. Focus on paying down credit card balances and establishing a clean payment history. The time invested pays back in lower rates and better loan options.

And while you’re working on your credit, start saving for a down payment. You can build credit and build savings at the same time — and in 12 months, you’ll be ready on both fronts.

Frequently Asked Questions

What is the minimum credit score to buy a house?

The absolute minimum is 500, which qualifies you for an FHA loan with 10% down. With a 580 score, you can get an FHA loan with just 3.5% down. Conventional loans require 620 or higher. However, higher scores get significantly better interest rates — a 760+ score can save over $120,000 in interest on a $350,000 loan compared to a 620 score.

How far in advance should I check my credit before buying?

At least six to twelve months before you plan to apply for a mortgage. This gives you time to dispute errors, pay down balances, and build a clean payment history if needed. Even if your score is already strong, checking early prevents surprises.

Will multiple mortgage applications hurt my credit score?

No, as long as you submit them within a focused window. Both FICO and VantageScore models treat multiple mortgage inquiries within a 14 to 45-day period as a single inquiry. Shop around freely — Freddie Mac data shows that getting five quotes can save approximately $3,000 over the life of the loan.

Can I buy a house with a 600 credit score?

Yes, through an FHA loan (minimum 580 for 3.5% down). However, with a 600 score, you’ll face a higher interest rate than someone with a 740 score. On a $300,000 loan, that difference could cost $200+ more per month. If you can wait three to six months and raise your score, the long-term savings are substantial.

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This content is for informational purposes only and does not constitute financial advice. Credit scores, interest rates, and loan program requirements change regularly. Consult a licensed mortgage professional or HUD-approved housing counselor for guidance specific to your financial situation.