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What Credit Score Do You Need to Buy a House?
Your credit score determines not just whether you can get a mortgage — it determines how much you pay. The difference between a 620 and a 760 credit score on a $400,000 mortgage can be over $100,000 in total interest. Here is exactly what you need and what it means for your rate.
The short answer
You need a minimum of 500 for FHA (with 10% down), 580 for FHA (with 3.5% down), and 620 for most conventional loans. But the best rates require 740+. Anything below 620 makes conventional financing very difficult.
Score requirements as of 2026 — different loan types have very different minimums
500FHA minimumWith 10% down
580FHA standard3.5% down available
620Conventional minMost lenders
740+Best ratesLowest APR available
Minimum Credit Score by Loan Type
| Loan Type | Minimum Score | Ideal Score | Notes |
|---|---|---|---|
| FHA Loan | 500 (10% down) 580 (3.5% down) | 620+ | Most forgiving — designed for buyers with lower credit |
| Conventional | 620 | 740+ | Best rates at 740+; scores below 680 add significant cost |
| VA Loan | No official minimum | 620+ | Most VA lenders require 620; some accept 580 |
| USDA Loan | 640 (automated) 580 (manual) | 680+ | Rural properties; stricter than FHA |
| Jumbo Loan | 700 | 740–760+ | Larger loans carry stricter requirements |
How Your Credit Score Affects Your Interest Rate
This is the part most buyers underestimate. Getting approved is only half the equation — your credit score directly determines the rate you’re offered, which determines how much you pay over the life of the loan.
| Credit Score Range | Estimated APR | Monthly pmt on $360K loan | Total interest over 30 yrs | Extra cost vs 760+ |
|---|---|---|---|---|
| 760–850 | 6.45% | $2,249 | $449,686 | Best rate |
| 740–759 | 6.67% | $2,302 | $468,701 | +$19,015 |
| 720–739 | 6.89% | $2,357 | $488,569 | +$38,883 |
| 700–719 | 7.11% | $2,413 | $508,784 | +$59,098 |
| 680–699 | 7.29% | $2,458 | $524,940 | +$75,254 |
| 660–679 | 7.51% | $2,514 | $545,029 | +$95,343 |
| 640–659 | 7.93% | $2,620 | $583,128 | +$133,442 |
| 620–639 | 8.41% | $2,745 | $628,196 | +$178,510 |
Key insight: Improving your credit score from 640 to 760 before buying a $450,000 home could save you over $130,000 in total interest over 30 years. If you’re below 720, it’s almost always worth taking 6–12 months to improve your score before applying.
FHA vs Conventional Calculator
See which loan type saves you more based on your credit score and down payment
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How to Check Your Credit Score for Free
Before applying for a mortgage, check your score through all three bureaus — Equifax, Experian, and TransUnion. Lenders use the middle score of the three. You can get free reports at AnnualCreditReport.com (the federally mandated free report site). Many credit cards and banks also provide free ongoing score monitoring.
Important: use a soft inquiry to check your score — these don’t affect your credit. When you apply for a mortgage, lenders do a hard inquiry which temporarily reduces your score by 2–5 points. Multiple mortgage inquiries within a 14–45 day window are typically treated as a single inquiry by credit scoring models.
How to Raise Your Credit Score Before Applying
Fast improvements (1–3 months)
- Pay down credit card balances — credit utilization (balances ÷ limits) accounts for 30% of your FICO score. Getting below 30% utilization helps significantly; below 10% is optimal for mortgage applications
- Pay off collections — recent collections drag scores down severely; settling or paying them off helps
- Become an authorized user on a family member’s old, well-managed card — their positive history boosts your score
- Dispute errors — 1 in 5 credit reports contain errors. Dispute any incorrect negative items with all three bureaus
Medium-term improvements (3–12 months)
- Don’t open new credit accounts — each application creates a hard inquiry and lowers the average age of your accounts
- Don’t close old accounts — closing cards reduces your total available credit and increases utilization
- Set up autopay — payment history is 35% of your FICO score. One missed payment can drop your score 50–100 points
- Pay down installment loans — reducing car loan and student loan balances helps, though less than credit card paydown
Credit Score Myths Debunked
| Myth | Reality |
|---|---|
| “Checking my own credit hurts my score” | Soft inquiries (checking your own) have no impact. Only hard inquiries from lender applications reduce your score. |
| “You need perfect credit to buy a house” | FHA loans are available with 580+ (and even 500 with 10% down). VA loans have no official minimum. |
| “Carrying a small credit card balance builds credit” | False — paying in full each month builds equally strong credit with no interest cost. |
| “Income affects your credit score” | Income is not a factor in FICO scoring at all. Only borrowing behavior matters. |
| “Closing old cards improves your score” | The opposite — closing old cards reduces available credit and average account age, often lowering your score. |
Frequently Asked Questions
What credit score do I need to buy a house with no money down?
VA loans (for eligible veterans and service members) require no down payment and have no official credit score minimum, though most lenders prefer 620+. USDA loans also offer no-down-payment financing in eligible rural areas and typically require 640+. FHA loans require at least 3.5% down with a 580 score.
How quickly can I raise my credit score?
Paying down credit card balances can improve your score within 30–60 days once the updated balance is reported to the bureaus. More significant improvements — like recovering from a missed payment or building a longer history — take 6–24 months. Buying yourself 6 months before applying is usually enough to make meaningful improvements from the tactical moves above.
Does getting pre-approved hurt my credit score?
A mortgage pre-approval triggers a hard inquiry, which typically reduces your score by 2–5 points for about 12 months. However, if you apply to multiple lenders within a 14–45 day window (depending on the scoring model), all the mortgage inquiries are counted as a single hard pull. Always shop multiple lenders — the rate savings far outweigh the minor temporary credit impact.
Disclaimer: This guide is for educational purposes only. Rates and requirements change frequently. Not financial advice. Always verify with lenders directly. Full disclaimer