What credit score do I need to buy a house?
There is no single magic number — the answer depends on which loan you use. But your score does two big jobs: it decides whether you qualify at all, and it sets the interest rate you pay for the next 30 years. Here is the plain-English breakdown of the minimums by loan type, how your score moves your rate and total cost, and how to raise it before you apply.
⚑ Educational information, not financial or lending advice
This is general educational content, not financial, lending, tax or legal advice and not a substitute for a professional. Credit score thresholds, lender overlays and loan rules change, and results vary by your lender, location and individual file. Before applying, confirm current requirements with a licensed loan officer or HUD-approved housing counselor.
If you have ever typed "what credit score do I need to buy a house" into a search bar, you have probably seen wildly different answers — 500, 580, 620, 740. They are all correct, just for different loans. Your credit score is the first thing a lender looks at, and it answers two separate questions: can I get approved, and what rate will I pay. You can clear the first bar with a fairly modest score; clearing the second one comfortably takes more work, and it is where the real money is.
Minimum credit scores by loan type
Mortgages come in a handful of flavors, and each has its own floor. Two numbers actually matter for any program: the government or agency minimum, and the higher bar individual lenders set on top of it — known as a lender overlay. The overlay is why a program "allows" 500 but the lender down the street still says no.
Conventional loans — around 620
Conventional loans (those backed by Fannie Mae or Freddie Mac rather than a government agency) generally require a minimum score of about 620. Below that, conventional approval becomes very hard regardless of your down payment. Above it, your rate and your private mortgage insurance (PMI) cost both improve as your score climbs, so a 760 borrower pays far less than a 620 borrower for the very same house.
FHA loans — 580, or 500 with more down
FHA loans, insured by the Federal Housing Administration, are the most forgiving on credit. The published rules allow:
- 580 and above — qualify with the minimum 3.5% down payment.
- 500 to 579 — still possible, but you must put 10% down.
- Below 500 — not eligible for FHA financing.
In practice, many FHA lenders apply an overlay and want 600 to 620 even though HUD permits 500, so do not assume the published floor is what your lender will accept.
VA and USDA loans — set by lender overlays
VA loans (for eligible veterans and service members) and USDA loans (for qualifying rural and suburban buyers) have no government-mandated minimum credit score. The agencies leave it to the lender, and most lenders settle on roughly 620 to 640 through their overlays. These programs can offer 0% down, which makes the credit bar the main gate — so a strong score matters even though no rule names a number.
| Loan type | Typical minimum score | Notes |
|---|---|---|
| Conventional | 620 | Better rate & lower PMI as score rises |
| FHA (3.5% down) | 580 | Most forgiving widely available option |
| FHA (10% down) | 500 | Lender overlays often raise this to ~600 |
| VA | 620* (overlay) | No agency minimum; 0% down possible |
| USDA | 640* (overlay) | No agency minimum; rural eligibility rules |
*VA and USDA have no government-set minimum; the figures shown are common lender overlays and vary by lender. Confirm current requirements with your loan officer.
How your score sets your rate — and your total cost
Qualifying is only half the story. Lenders price mortgages in credit-score tiers: each tier you climb knocks a slice off your interest rate. The difference looks small as a percentage but compounds enormously over a 30-year term, because you are paying it on a large balance for decades.
The table below shows the same $320,000, 30-year fixed loan at illustrative rates for each tier. It assumes principal and interest only (no taxes, insurance or PMI) and is meant to show the shape of the gap, not to quote today's market.
| Score tier | Sample APR | Monthly P&I | Total interest (30 yr) |
|---|---|---|---|
| 760–850 (excellent) | 6.50% | $2,023 | $408,096 |
| 700–759 (good) | 6.72% | $2,069 | $424,924 |
| 680–699 (fair-plus) | 6.90% | $2,108 | $438,776 |
| 640–679 (fair) | 7.34% | $2,202 | $472,838 |
| 620–639 (entry) | 7.88% | $2,320 | $515,107 |
Illustrative APRs on a $320,000 30-year fixed loan, principal and interest only. Real rates change daily and depend on your lender, down payment, debt-to-income ratio and location. Use these to compare tiers, not as a quote.
Read the bottom row against the top one. The entry-tier borrower pays roughly $297 more every month and more than $107,000 extra in interest over the life of the loan — for the identical house. That is the cost of a lower score, and it is exactly why raising your number before you apply is one of the highest-return financial moves available to a buyer.
→ See what you can actually afford
Your score sets the rate, but your income, debts and down payment set the price. Plug your numbers into the home affordability calculator to see the loan amount and monthly payment that fit your budget at your likely rate.
The credit score tiers, in plain terms
FICO scores run from 300 to 850. Lenders group them into broad bands, and where you land decides both approval and pricing:
- 800–850 — Exceptional. Best available rates; you are the borrower lenders compete for.
- 740–799 — Very good. Strong pricing; small gains above this add little.
- 670–739 — Good. Solidly approvable on most programs at reasonable rates.
- 580–669 — Fair. FHA-friendly and conventional-possible, but at higher rates and stricter terms.
- 300–579 — Poor. Limited to FHA with 10% down or rebuilding first; expect the highest rates.
One practical wrinkle: lenders pull all three bureaus (Equifax, Experian, TransUnion) and use your middle score. With two borrowers, they take the lower of the two middle scores. The free number in your banking app is often a VantageScore or educational FICO and can sit 20 to 40 points off your mortgage score — so check a mortgage-specific score before you assume which tier you are in.
How to raise your score before you apply
Most buyers can move their score meaningfully in three to six months. Start early, because the lender sees only what the bureaus report on the day they pull — last-minute fixes may not land in time. The biggest levers, in order of impact:
1. Pay down credit card balances
Your credit utilization — balances divided by limits — is one of the heaviest factors. Getting each card and your overall utilization below 30%, and ideally under 10%, can lift a score within one or two billing cycles. This is usually the fastest legitimate gain available.
2. Never miss a payment
Payment history is the single largest scoring factor. A spotless run of on-time payments in the months before you apply does real work, and a single 30-day late can undo months of progress. Automate minimums so nothing slips.
3. Dispute errors on your report
Pull your free reports and look for accounts that are not yours, balances that are wrong, or paid debts still showing as open. Disputing and correcting genuine errors can add points quickly, and you are entitled to free reports from each bureau.
4. Leave old accounts open and avoid new debt
Closing an old card shortens your credit history and shrinks your available limit, which can hurt your score. In the run-up to a mortgage, avoid opening new lines or financing a car — each hard pull and new balance can drop you a tier at the worst moment.
Your score is one piece — not the whole picture
Lenders weigh your credit alongside two other big factors: how much of your income already goes to debt, and how much cash you bring to the table. A great score will not rescue an application where the monthly debts are too high, and a modest score can still work with strong income and savings. To see how the other two levers fit together, read our guide on a good debt-to-income ratio to buy a house and how much you should save for a down payment. When you are ready to price a specific loan, the mortgage calculator turns your rate and term into a monthly payment.
Frequently asked questions
What is the minimum credit score to buy a house?
It depends on the loan. Most conventional loans need about 620. FHA allows 580 with 3.5% down, or as low as 500 with 10% down. VA and USDA have no government-set minimum, but lenders typically want 620 or higher through their own overlays. While 500 is technically possible, aim for 620+ to keep your options open.
Can I buy a house with a 580 credit score?
Yes. A 580 score qualifies for an FHA loan with the minimum 3.5% down payment, and some lenders will approve conventional financing too. Your rate will be higher than a 700s borrower, so you pay more over time, but homeownership is achievable. Lifting your score into the low 600s first can meaningfully lower your rate.
Does my credit score affect my mortgage interest rate?
Significantly. Lenders price mortgages in score tiers — the higher the tier, the lower the rate. The gap between a sub-640 score and a 760-plus score can exceed a full percentage point, which on a 30-year loan can add tens of thousands of dollars in total interest. Improving your score before applying is one of the highest-return moves a buyer can make.
How long does it take to raise my credit score before buying?
Quick wins like paying balances below 30% utilization and disputing errors can lift a score within one to two billing cycles. Bigger repairs — recovering from missed payments or collections — take six months to a year of on-time payments. Start at least three to six months before you apply so the changes show up when the lender pulls your report.
Which credit score do mortgage lenders use?
Most use FICO scores and pull all three bureaus (Equifax, Experian, TransUnion). With two borrowers, lenders typically use the lower of the two middle scores. This often differs from the free score in a banking app, which may be a VantageScore or educational FICO, so check a mortgage-specific score before applying.
Sources & further reading
- Consumer Financial Protection Bureau (CFPB) — "What credit score do I need to get a mortgage?" and "How does my credit score affect my mortgage rate?", consumerfinance.gov.
- U.S. Department of Housing and Urban Development (HUD) — FHA single-family loan requirements and minimum credit score / down payment rules, hud.gov.
- U.S. Department of Veterans Affairs (VA) and USDA Rural Development — home loan program guidelines, va.gov and rd.usda.gov.
- AnnualCreditReport.com — official source for free credit reports from Equifax, Experian and TransUnion.
Last updated: 19 June 2026