The minimum credit score to buy a house depends on the type of mortgage loan you’re applying for. There is no single universal threshold — different loan programs have different requirements, and your credit score is just one factor lenders evaluate. Here’s exactly what you need to know before you start house hunting.
Credit Score Requirements by Loan Type
Conventional loans: The most common mortgage type. Minimum credit score of 620, though most lenders prefer 640 or higher. To get the best interest rates on a conventional loan, you generally want a score of 740 or above. Every tier below that costs you more in interest.
FHA loans: Government-backed loans designed for first-time buyers and people with imperfect credit. You can qualify with a score as low as 500 with a 10% down payment, or 580 with as little as 3.5% down. FHA loans are more accessible but come with required mortgage insurance (MIP) for the life of the loan in most cases.
VA loans: Available to veterans and active-duty military. The VA doesn’t set a minimum credit score, but most VA lenders require at least 580 to 620. These loans have excellent terms — no down payment required, no PMI — and are worth pursuing if you qualify.
USDA loans: For homes in eligible rural areas. Most lenders want a minimum score of 640. Like VA loans, they can require no down payment.
Jumbo loans: For homes priced above conforming loan limits (generally $766,550 in most areas for 2024). Typically require a score of 700 or higher, often 720 or above. These loans carry stricter requirements across the board.
What Credit Score Gets You the Best Mortgage Rate?
Qualifying for a mortgage and qualifying for a good rate are different things. Lenders price loans based on risk — the lower your credit score, the higher the interest rate they’ll charge.
Here’s how much your credit score affects your mortgage payment in real dollars. On a $300,000, 30-year conventional mortgage:
760 to 850 (excellent): Best available rate. Let’s say 6.5% — monthly payment ~$1,896.
700 to 759 (very good): Rate around 6.75%. Monthly payment ~$1,946. About $50 more per month, $18,000 more over 30 years.
640 to 699 (good): Rate around 7.25%. Monthly payment ~$2,047. About $150 more per month versus the best rate, $54,000 more over 30 years.
580 to 639 (fair): Rate around 7.75% or higher. Monthly payment ~$2,150+. Over $250 more per month, $90,000+ more over the life of the loan.
The difference between a 620 credit score and a 760 credit score on a $300,000 mortgage is potentially $80,000 to $100,000 over 30 years. Your credit score is literally one of the most valuable numbers in your financial life.
Other Factors Lenders Evaluate Besides Credit Score
Your credit score is important, but mortgage lenders look at your full financial picture. Here’s what else matters:
Debt-to-income ratio (DTI). Your monthly debt payments divided by your gross monthly income. Most conventional lenders want a DTI below 43%, with some flexibility to 50% in specific cases. FHA allows up to 57% in some situations. Lower DTI signals to lenders that you have room in your budget to handle the mortgage payment.
Down payment. More down payment equals lower risk for the lender, which can offset a lower credit score. A larger down payment also eliminates the need for private mortgage insurance (PMI) on conventional loans when you put down 20% or more.
Employment history. Lenders typically want to see 2 years of stable employment history. Job changes within the same field are usually fine. Gaps in employment, or switching from salaried to self-employed, require more documentation.
Income verification. Your income needs to be verifiable — W-2s, tax returns, pay stubs. Self-employed borrowers often need 2 years of tax returns showing consistent income.
Savings and reserves. Some loan types require you to have a certain number of months of mortgage payments saved as reserves after closing. Having cash beyond the down payment signals financial stability.
How to Improve Your Credit Score Before Buying a House
If your score needs work, you can make meaningful improvements in 3 to 12 months with focused effort. Here’s where to focus:
Pay every bill on time. Payment history is 35% of your FICO score. Set up autopay for every account — even the minimum payment — so you never miss a due date.
Pay down credit card balances. Credit utilization (your balance relative to your limit) is 30% of your score. Getting balances below 30% — ideally below 10% — of your credit limits can cause significant score increases within one or two billing cycles. This is often the fastest lever to pull before applying for a mortgage.
Don’t open or close accounts. In the 6 to 12 months before applying for a mortgage, avoid applying for any new credit (which causes hard inquiries and can lower your score) and avoid closing old accounts (which can reduce your average account age and increase your utilization).
Dispute errors on your credit report. One in five people has an error on their credit report that may be dragging down their score. Check all three bureaus at AnnualCreditReport.com and dispute anything that’s inaccurate. Errors can often be resolved within 30 days. Learn how to dispute credit report errors.
Become an authorized user. If a family member or close friend with excellent credit adds you as an authorized user on their credit card, their positive history on that account can appear on your report and boost your score. You don’t need to use the card — just being listed helps.
For a full action plan, see our guide on how to improve your credit score in 90 days.
Should You Wait to Buy a House Until Your Score Is Higher?
It depends on how much improvement is realistic and how hot the housing market is in your area. A general framework:
If your score is below 620: You’re below the conventional loan threshold. An FHA loan is your most likely path. Waiting 6 to 12 months to push the score above 620 (ideally 640+) is worth it for better rates and more loan options.
If your score is 620 to 680: You can qualify for conventional loans but you’ll pay higher rates. If you can get to 700 within 6 months, wait. If it would take 2+ years, buying now and refinancing later when your score is higher may make more sense.
If your score is 720+: You’re in good shape. Minor improvements above 740 won’t dramatically change your rate. Focus on other factors like down payment and DTI.
Frequently Asked Questions
Does getting pre-approved hurt my credit score? Yes, slightly. A mortgage pre-approval involves a hard inquiry, which can drop your score by 5 to 10 points temporarily. If you apply at multiple lenders within 14 to 45 days (depending on the scoring model), all those inquiries count as one — so shop around within that window.
Can I buy a house with a 500 credit score? Technically yes, with an FHA loan and 10% down. But at that score, your interest rate will be significantly higher than a borrower with 620+. Spending a few months improving your score before applying can save tens of thousands over the life of the loan.
Do both spouses’ credit scores matter if buying together? Yes. When buying with a co-borrower, lenders typically use the lower of the two middle scores from the three credit bureaus. One spouse’s excellent score doesn’t cancel out the other’s poor score — the lower score is what primarily drives the rate.
How long before buying should I check my credit? At least 6 months before you plan to apply. This gives you time to dispute errors, pay down balances, and allow any recent negative marks to age. Pulling your own reports doesn’t affect your score.