What Credit Score Do You Need to Buy a House?
The short answer
- FHA allows a 580 score with 3.5% down (500 with 10% down), VA and USDA set no official minimum, and conventional lenders commonly look for 620 — but lenders can set their own higher floors
- On a conventional loan, the best pricing goes to scores of 780 and up — in one illustrative example, a half-point rate difference on a $350,000 loan is about $116 a month
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Why this matters
What credit score do you need to buy a house? It is one of the most searched questions by aspiring homeowners, and for good reason — your credit score has a big say in which loans are open to you and how much your mortgage will cost. A higher score generally means lower interest rates, more loan options, and less money paid over the life of your mortgage. A lower score means fewer choices, higher rates, and potentially tens of thousands of extra dollars in interest. The good news: credit scores can be improved, often faster than people think, and knowing where the thresholds are gives you a clear target to aim for. This guide covers the credit score floors for every major loan type, shows you how much your score can affect your monthly payment, and gives you a practical plan to raise your score before you apply.
Minimum Credit Score to Buy a House by Loan Type
The credit score you need to buy a house depends on which loan program you use, and lenders often set their own minimums above the program's. FHA loans: the program minimum is 580 if you want to put down only 3.5%. With a score between 500 and 579, FHA requires at least 10% down. FHA loans are insured by the Federal Housing Administration and are a common choice for first-time buyers with lower credit scores or smaller down payments, though many FHA lenders set their own floor higher, often 620 or 640. Conventional loans: these are loans that follow Fannie Mae or Freddie Mac guidelines. For years the standard floor was 620. Since November 2025, Fannie Mae's automated underwriting system no longer applies a fixed minimum score and instead weighs your whole credit profile, while manually underwritten Fannie Mae loans still need 620 for a fixed rate. In practice, many lenders still look for 620 or higher, so ask each lender what it uses. Conventional loans generally offer the best pricing for borrowers with strong credit, and their mortgage insurance can be removed once you build enough equity. VA loans: the Department of Veterans Affairs does not set a minimum credit score; individual VA lenders set their own. VA loans are available to eligible service members, veterans, and some surviving spouses, and with full entitlement they can require no down payment when the price is at or below the appraised value, with no monthly mortgage insurance. USDA loans: USDA does not publish a minimum credit score either. Its automated system weighs your credit, and lenders set their own minimums. USDA loans are designed for low- and moderate-income buyers in eligible rural and suburban areas and require no down payment.
How Your Credit Score Affects Your Mortgage Interest Rate
Understanding what credit score you need to buy a house is only half the picture — you also need to understand how your score affects the price you pay. The difference between a good and an excellent score might seem small — maybe 40 or 60 points — but the financial impact over a 30-year mortgage can be large. On a conventional loan, Fannie Mae and Freddie Mac charge loan-level price adjustments by credit score band and down payment, and the best pricing goes to scores of 780 and above. Each lower band carries a larger adjustment, which shows up as a higher rate, extra cost at closing, or both. Here is an illustration of why that matters — example rates, not a quote or an offer. On a $350,000 30-year fixed loan, principal and interest at 6.5% is about $2,212 a month, and at 7.0% it is about $2,329. That half-point difference is about $116 a month, or roughly $41,900 over 30 years if you kept the loan for the full term. That is not a rounding error. This is why your score matters so much — moving up a band before you apply can save you real money. Ask your loan officer to show you what your score does to your own pricing.
Why a Few Points Can Matter: Pricing Bands
On a conventional loan, lenders do not price your loan point by point. They group scores into bands, and each band carries its own price adjustment that shows up as a higher rate, extra points at closing, or both. Your down payment changes the size of that adjustment too, so the same score can price differently at 5% down than at 20% down. That means a small gain that moves you into the next band can be worth more than a bigger gain that leaves you in the same one. On a conventional loan, private mortgage insurance usually costs more at lower scores as well, so the effect can show up twice in your payment. Other loan types handle score pricing differently, so ask how yours works. If you are close to the edge of a band, ask your loan officer to price the loan two ways — at your current score and at the next band up — and compare the total cost of each, including whatever it would cost you, in time or money, to get there. Sometimes waiting a few months is clearly worth it. Sometimes it is not, and seeing both numbers is how you tell.
What Actually Makes Up Your Credit Score
To improve your credit score before buying a house, you need to understand what drives it. Most mortgage lenders still use older "classic" FICO score versions, though the rules now allow some lenders to use VantageScore 4.0 as well. FICO publishes five broad factors. Payment history accounts for about 35% of your score and is the most heavily weighted factor. Paying every bill on time, every month, is the single most important thing you can do. A 30-day late payment can cost a significant number of points, especially if your score was high, and it can stay on your report for seven years. Credit utilization accounts for about 30%. This is the percentage of your available credit that you are currently using. If you have a credit card with a $10,000 limit and a $3,000 balance, your utilization on that card is 30%. Lower is better — a common rule of thumb is to stay under 30%, and people with the highest scores tend to use under 10%. Length of credit history accounts for about 15%. Longer is better, which is why closing old credit cards can hurt your score over time. Credit mix accounts for about 10%. Having a combination of credit types — credit cards, an auto loan, a student loan — shows you can manage different kinds of debt. New credit accounts for the final 10% or so. Each time you apply for credit, a hard inquiry appears on your report and can lower your score by a few points. The good news for mortgage shoppers: multiple mortgage inquiries inside a short window count as a single inquiry. The window is 14 days on the older FICO versions most mortgage lenders use and 45 days on newer ones, so do your rate shopping within 14 days to be safe.
How to Raise Your Credit Score Before Applying for a Mortgage
If your credit score is not where you want it to be, here is a practical improvement plan organized by speed of impact. The fastest lever is credit utilization — paying down credit card balances can help your score within one to two billing cycles, once the card issuer reports the lower balance. If you have a $5,000 balance on a $10,000 limit card, paying it down to $500 drops your utilization from 50% to 5%, which often helps, though how much varies. Next, set up autopay on every account so you never miss a payment. If you have any past-due accounts, bring them current right away. If you have an isolated late payment with an otherwise good record, you can ask the creditor for a "goodwill adjustment" — some will consider it, but many decline, because accurate information generally stays on your report. Check your credit reports for errors. A 2012 Federal Trade Commission study found that one in five consumers had an error on at least one of their three credit reports. Dispute inaccurate items directly with the credit bureau — you can do this online for free. Avoid opening new credit accounts or closing old ones in the six to twelve months before applying for a mortgage. New accounts add inquiries and lower your average account age, and closing accounts reduces your available credit, which increases your utilization ratio. If you have no credit history at all, consider a secured credit card. You deposit money as collateral, use the card for small purchases, and pay it off in full each month. After about six months of reported activity, you will generally have a credit score. How long it takes to reach your target depends on what is holding your score down — utilization can move in a month or two, while recent late payments take longer to fade.
The Rapid Rescore Option for Mortgage Applicants
If you are in the middle of the mortgage process and your score is just a few points below a pricing band that would get you a better rate, ask your lender about a rapid rescore. This is a service where the lender works with the credit bureaus to update your report faster than the normal monthly cycle. For example, if you pay off a credit card balance today, it might take 30 days for that change to appear on your credit report naturally. A rapid rescore can often reflect it within a few business days once you provide proof of payment. This service is only available through lenders — you cannot request it directly from the credit bureaus. Ask your loan officer how they handle it and whether any cost is passed on to you. If crossing into the next band would lower your rate, the savings over the life of the loan can be substantial, as the example above shows.
Credit Score Ranges: What Each Range Means for Buying a House
Here is a plain-English summary of what each credit score range generally means for your home buying journey. Exact cutoffs vary by lender and program. 780 and above: the top conventional pricing band, which gets the most favorable price adjustments for your loan type and down payment. 740 to 779: very strong. Most loan options are open to you, and conventional pricing is close to the best tier. 680 to 739: good. Most loan programs are available, with somewhat higher conventional pricing at each band down. Moving up a band before you apply can lower your payment. 620 to 679: fair. Conventional and FHA loans are often available, but conventional pricing and mortgage insurance cost more in this range, so compare both. A few months of focused work can open up better options. 580 to 619: limited. FHA allows 3.5% down at 580 and up, but many lenders set higher floors, and conventional options are harder to find. Focus on credit improvement and shop lenders. 500 to 579: very limited. FHA requires at least 10% down, few lenders work in this range, and most other programs are not available. Below 500: FHA and most other programs are not available. Wherever you fall on this spectrum, your credit score is not permanent. It is a snapshot of your financial behavior that you have the power to change.
If You Have No Credit Score at All
No credit score is not the same as a bad credit score. If you have never had a credit card or loan, some lenders can still review your file through manual underwriting — a person looks at your whole financial picture instead of relying on an automated system. FHA allows this, and some conventional lenders do as well, though not every lender offers it. Instead of a score, you document a history of paying other bills on time — rent, utilities, a cell phone, insurance premiums — usually over about a year. Collect statements or letters from those providers showing every payment, and keep your rent payments traceable through your bank. Manual underwriting tends to look harder at your savings, your job stability, and your debts, so expect more paperwork and a slower process. If you are six months or more from buying, opening a secured card now can give you a score and widen the lenders who will look at your file.
What Not to Do While Shopping for a Mortgage
Once you start the mortgage process, your credit behavior is under a microscope. Protecting your credit means avoiding several common pitfalls. Do not finance new furniture, a car, or anything else — new debt changes your DTI and can derail your loan even if your credit score stays the same. Do not make large cash deposits without a paper trail — lenders will ask you to document the source of large deposits during underwriting. Do not co-sign loans for anyone, as this adds their debt to your profile. Do not change jobs without talking to your loan officer first — lenders verify employment right before closing and a job change can delay or kill the deal. Do not close credit card accounts, even ones you do not use, because this reduces your available credit and increases your utilization ratio. And do not make late payments on anything — not even a $25 minimum payment on a store card you forgot about. Protect your credit from the day you start thinking about buying a home until the day you close.
Find Out Where You Stand Today
Knowing what credit score you need to buy a house is the starting point. The next step is understanding where you stand right now and what specific actions will move the needle fastest for your situation. Your credit score does not exist in isolation — it interacts with your income, your debts, your savings, and the type of loan you are pursuing. A 660 credit score with zero debt and 10% down is a very different situation than a 660 score with $800 per month in car and student loan payments. To see where to start, answer a few quick questions at homeiqacademy.com/ready and we will show you the one thing to work on first.
Everything to remember
- FHA allows a 580 score with 3.5% down (500 with 10% down), VA and USDA set no official minimum, and conventional lenders commonly look for 620 — but lenders can set their own higher floors
- On a conventional loan, the best pricing goes to scores of 780 and up — in one illustrative example, a half-point rate difference on a $350,000 loan is about $116 a month
- The fastest way to improve your credit score is paying down credit card balances — the change can show up within one to two billing cycles
- A 2012 FTC study found one in five consumers had an error on at least one credit report — check yours for free at AnnualCreditReport.com and dispute inaccuracies
- Do not open new accounts, close old ones, or take on new debt in the 6-12 months before applying for a mortgage
- No credit score is different from bad credit — a documented history of on-time rent, utility, and phone payments can support a manually underwritten loan
- Lenders price scores in bands, so ask your loan officer to compare your current band with the next one up before deciding whether to wait
Questions people ask (3)
What is the minimum credit score to buy a house?
It depends on the loan. FHA allows a score as low as 500 with 10% down, or 580 with 3.5% down. VA and USDA do not set an official minimum, and lenders set their own. For conventional loans, Fannie Mae's automated underwriting no longer applies a fixed minimum, but manually underwritten loans still need 620 and many lenders still look for 620 or higher. Individual lenders often set floors above the program minimums, so ask each lender what it uses. Higher scores generally get better pricing, so aiming above the minimums can save you thousands.
Can I buy a house with a 600 credit score?
It is possible. A 600 score is above FHA's 580 floor for a 3.5% down payment, though some FHA lenders set their own minimums higher, so you may need to shop. Your pricing will generally be higher than for someone with a 700 or 780 score. If you can spend a few months improving your score before applying, you may save a meaningful amount over the life of your mortgage.
How fast can I raise my credit score to buy a house?
The fastest improvement usually comes from reducing credit card utilization, which can show up within one to two billing cycles once the card issuer reports the lower balance. Correcting errors on your credit report can also help, and bureaus generally have 30 days to investigate a dispute. Building a longer payment history takes more time. How far you can move depends on what is holding your score down, so start with your actual reports and focus on paying down balances, setting up autopay, and disputing errors.
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Read next · Part 2 of the credit seriesRead your credit report