What Credit Score Do You Need to Buy a House?

By Jerry L Kindig III, NMLS #2397823

"What credit score do I need to buy a house?" is one of the first questions I get from buyers, usually followed by "Is mine good enough?" The honest answer is that it depends on the loan type, and the number that gets you approved is not always the number that gets you the best price. Here is how it really works in plain English.

Rates change daily, so I do not quote rates or payment examples here. To see how different numbers play out on a payment, use our mortgage payment calculator.

The short answer by loan type

Every loan program has its own rules, and lenders can add their own requirements on top (the industry calls those "overlays"). Here is the general picture from the agencies that write the rules:

• FHA loans: Under HUD's FHA guidelines, a score of 580 or higher is generally needed for the minimum down payment of 3.5%. Scores from 500 to 579 may still be eligible, but with at least 10% down. Many lenders set their own floor higher than HUD's.
• Conventional loans: For years, 620 was the standard cutoff. In November 2025, Fannie Mae removed its 620 minimum for loans run through its automated underwriting system, Desktop Underwriter. The system now looks at your whole credit and financial picture instead of one hard number. In real life, many lenders still use a minimum score, and your score still drives your pricing.
• VA loans: According to the VA's buyer's guide, the VA does not require a minimum credit score. Most lenders do set one, so it pays to shop.
• USDA loans: USDA's automated system does not set a standard minimum score either. You will often hear 640 quoted, but that is usually a lender requirement, not a USDA rule.
• Jumbo and non-QM loans: These are set by each lender or investor, and score requirements are often higher. Programs like bank statement loans and DSCR loans each have their own guidelines.

Not every borrower will qualify for the minimum down payment. Your actual down payment depends on credit, income, the property, and the program.

You can read more about each program on our FHA, conventional, VA, and USDA pages.

Approval is one thing. Price is another.

This is the part most people miss. Getting approved is a yes or no question, but your credit score also affects what the loan costs you. The Consumer Financial Protection Bureau lists credit score as one of the main factors that determine your mortgage interest rate. In general, higher scores get better pricing, and lower scores can mean a higher rate or extra costs.

On conventional loans, your score also affects what you pay for private mortgage insurance when you put less than 20% down. On FHA loans, the mortgage insurance works differently, which is one reason buyers with lower scores sometimes land on FHA. If you are weighing those two, see FHA vs conventional or our low down conventional vs FHA comparison.

So the better question is not just "Can I get approved?" It is "What score gets me a good deal, and is it worth waiting a few months to get there?"

Which score do lenders actually use?

The score you see on a free app is often not the one a mortgage lender pulls. Lenders use specific mortgage scoring models from all three credit bureaus. With one borrower, they typically use the middle of your three scores. With two or more borrowers, rules vary by program, and the lower borrower's score can end up driving the deal.

That is why I always tell people not to panic, or celebrate, over an app score. A pre-approval pulls the real numbers. If you are getting ready for that step, here are the documents needed for pre-approval.

Your score is not the only thing that matters

Underwriting looks at the whole file. A lower score can sometimes be offset by other strengths, and a high score will not save a file with other problems. Lenders also look at:

• Debt-to-income ratio: how your monthly debts compare to your income
• Down payment and savings: money left in the bank after closing helps
• Job and income history: steady, documented income
• Recent credit events: late payments, collections, bankruptcy, or foreclosure, and how long ago they happened

To get a feel for how income and debts affect your budget, read how much house you can actually afford.

How to raise your score before you apply

If your score is close to a cutoff or a better pricing tier, a few months of focused work can make a real difference. The basics that usually help:

• Pay every bill on time. Payment history is the biggest factor in most scores.
• Pay down credit card balances. Lower balances compared to your limits usually help, sometimes quickly.
• Do not close old cards right before you apply, since that can raise your utilization.
• Hold off on new credit. No new car loan or store card while you are house shopping.
• Check your reports for errors. You can get free reports at AnnualCreditReport.com and dispute anything that is wrong.

Why shopping lenders matters even more with a lower score

Since lenders can set their own minimums and pricing, two lenders can look at the same credit and give you very different answers. One might say no, and another might approve the same file. As a broker, I can compare options from many lenders instead of just one. Here is more on how that works: mortgage broker vs bank.

FAQ

Can I buy a house with a 580 credit score?
Possibly. HUD's FHA guidelines generally allow the minimum down payment at 580 or higher, but individual lenders may require more, and the rest of your file has to qualify too.

Is 620 still the minimum for a conventional loan?
Not as a hard Fannie Mae rule anymore. Fannie Mae removed the 620 minimum for Desktop Underwriter loans in November 2025, but many lenders still set their own minimum, and your score still affects pricing.

Do VA loans have a minimum credit score?
The VA does not set one. Most lenders do, and those requirements vary.

Does checking my rate hurt my credit?
A mortgage credit pull can have a small effect. Credit scoring models generally treat multiple mortgage inquiries within a short shopping window as one, so comparing lenders over a few weeks is usually fine.

Not sure where you stand?

Send me a note with roughly where your score is, what you are hoping to buy, and how much you have saved. I will tell you which programs fit and whether a few months of credit work could save you money. Reach me through the contact page.

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Not all clients will qualify for these products. Eligibility and availability vary by program and borrower. This article is for general information only. It is not a commitment to lend or an offer of credit. Rates and programs change daily and are subject to credit approval, underwriting, and property eligibility.

Neither the Loan Originator nor Loan Factory, Inc. is a government agency or is affiliated with, endorsed by, or acting on behalf of the U.S. Government, the Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), or the U.S. Department of Agriculture (USDA).

Jerry L Kindig III, NMLS #2397823 | Loan Factory, NMLS #320841 | Equal Housing Opportunity