What Credit Score Do You Need to Buy a House?

If you are Googling this question at midnight, you are not alone. Your credit score feels like the gatekeeper standing between you and your first home, and it is natural to wonder whether yours is good enough. The truth is more nuanced — and more encouraging — than most people expect.

The short answer: There is no single credit score you need to buy a house. The minimum credit score to buy a house depends on the type of loan you pursue. Many buyers qualify with scores in the low-to-mid 600s, and some government-backed programs go even lower. Your score will, however, affect the interest rate you are offered and the size of your required down payment.

Let's break it all down.

Minimum Credit Scores by Loan Type

Not every mortgage works the same way. Different loan programs set different floors, and understanding which program fits your situation is the first step toward a realistic plan.

A few important notes about this table. These are general thresholds — individual lenders often set their own requirements above the program minimums. A score of 580 might technically qualify you for an FHA loan, but some lenders will want to see 620 or higher before they approve you.

FHA Credit Score Requirements: A Closer Look

The FHA loan comes up constantly in conversations about buying a home with a lower credit score, and for good reason. Insured by the Federal Housing Administration, these loans were designed to make homeownership more accessible.

Here is how the FHA credit score requirements actually work:

• 580 and above: You can qualify for the standard 3.5% down payment. This is the tier most first-time buyers aim for.
• 500 to 579: You may still qualify, but you will need to put down at least 10%. That higher down payment offsets the lender's risk.
• Below 500: FHA-insured loans are generally not available at this level.

What Many Buyers Don't Realize

FHA loans have additional requirements beyond the credit score. Lenders will also examine your debt-to-income ratio (how much of your monthly income goes toward debt payments), your employment history, and the property itself. A qualifying score gets you in the door, but it is not the only thing on the checklist.

It is also worth knowing that FHA loans require mortgage insurance premiums (MIP) — both an upfront cost and a monthly addition to your payment. This is the trade-off for the lower barrier to entry. The Consumer Financial Protection Bureau has a helpful overview of FHA loans.

How Your Credit Score Affects Your Interest Rate

Meeting the minimum is one thing. What your score means for your monthly payment is another thing entirely.

Lenders use your credit score as one of the primary signals for how risky a loan might be. A higher score generally translates to a lower interest rate, and even a small rate difference compounds into real money over the life of a 30-year mortgage.

To put this in perspective: on a $300,000 loan, the difference between a 6.5% and a 7.5% interest rate is roughly $200 per month. Over 30 years, that gap adds up to more than $70,000 in additional interest.

The Score Ranges Lenders Care About

• 760 and above — Typically qualifies for the best available rates
• 700 to 759 — Strong rates, slightly above the top tier
• 660 to 699 — Moderate rates; still competitive
• 620 to 659 — Higher rates; may face additional conditions
• Below 620 — Limited conventional options; FHA or alternative programs become more relevant

This is why many buyers find that spending a few months improving their score before applying can save them thousands of dollars over the life of their loan.

What Actually Makes Up Your Credit Score

The most widely used model, FICO, weighs five categories:

• Payment history (35%) — Whether you pay bills on time. This is the single biggest factor.
• Amounts owed (30%) — How much of your available credit you are using (credit utilization ratio). Generally, lenders like to see this below 30%.
• Length of credit history (15%) — How long your accounts have been open.
• Credit mix (10%) — Having different types of credit can help.
• New credit (10%) — Recent credit inquiries and newly opened accounts.

A Note on Which Score Lenders Pull

The credit score your bank app shows you is probably not the same one a mortgage lender will use. Most lenders pull a FICO score specifically calibrated for mortgage lending, and they typically look at scores from all three major bureaus — Equifax, Experian, and TransUnion — then use the middle score.

If you are buying with a partner, the lender generally uses the lower of the two applicants' middle scores for qualification purposes.

Practical Steps to Improve Your Score Before You Apply

Quick wins (1–3 months)

• Pay down credit card balances. Reducing your utilization ratio can move your score quickly.
• Dispute errors on your credit report at AnnualCreditReport.com.
• Become an authorized user on a family member's well-managed credit card.

Longer-term habits (3–6 months)

• Set every bill to autopay.
• Avoid opening new credit accounts.
• Keep old accounts open.

What to avoid

• Do not take on new debt before applying for a mortgage.
• Do not close credit cards you have paid off.
• Do not make large, unexplained deposits into your bank accounts.

For a deeper dive, check out our guide on buying a home with bad credit.

Can You Buy a House With Bad Credit?

Yes — but your options narrow. FHA loans remain available down to 500 with a larger down payment. Some state and local housing programs offer assistance specifically for buyers with lower scores.

If your score is below 500, many buyers benefit from working with a HUD-approved housing counselor.

Your credit score is a snapshot, not a life sentence.

The Bigger Picture: Credit Score Is One Piece of the Puzzle

Lenders evaluate your full financial picture:

• Stable income and employment history
• Manageable debt-to-income ratio (most programs prefer below 43%)
• Down payment and reserves
• The property itself

Want to see where you stand? Our Qualification Simulator walks you through the key variables lenders consider.

Frequently Asked Questions