What Credit Score Is Needed to Buy a House?

The credit score needed to buy a house depends on your loan type. While some programs allow scores as low as 500, most buyers qualify with scores between 620–740. Higher scores mean lower interest rates and easier loan approval.

FHA Loans: Minimum Credit Score 500–580

FHA loans offer the lowest credit score requirements:

  • 580+ — qualify for 3.5% down payment
  • 500–579 — require 10% down payment

FHA loans are popular with first-time buyers due to easier credit and income standards.

Conventional Loans: Minimum Credit Score 620

Most conventional lenders require a minimum 620 credit score. Higher scores reduce PMI costs and interest rates:

  • 620–679: Higher PMI, higher rates
  • 680–739: Better pricing
  • 740+: Best rates available

Conventional loans reward buyers with strong credit histories.

VA Loans: No Official Minimum Score

VA loans for military service members do not set a minimum credit score, but most lenders follow a 580–620 guideline.

VA loans offer 0% down and no mortgage insurance, making them one of the best options for qualified buyers.

USDA Loans: Minimum Credit Score 640

USDA loans require a 640 score for automated approvals. These loans are designed for rural and suburban areas and offer 0% down to qualifying buyers.

How Credit Score Affects Your Mortgage Rate

The higher your score, the lower your interest rate. A difference of 40–60 points can save thousands over the life of the loan.

  • 760+: Elite rates
  • 700–759: Excellent rates
  • 680–699: Good rates
  • 620–679: Acceptable but higher rates
  • <620: Limited options

Lenders also consider Debt-to-Income (DTI), income consistency, down payment, and employment history.

How to Improve Your Credit Score Before Buying

  • Pay down credit card balances below 30% utilization
  • Dispute errors on your credit report
  • Avoid applying for new credit before closing
  • Make all payments on time
  • Keep older accounts open to increase credit age

Frequently Asked Questions

What credit score do most lenders require?
Most lenders require a minimum credit score of 620 for a conventional mortgage. FHA, VA, and USDA loans may allow lower scores.

Can I buy a house with a 580 credit score?
Yes. With a 580 score, most buyers qualify for an FHA loan with a 3.5% down payment.

Can I buy a house with a 500 credit score?
Possibly. FHA loans allow scores as low as 500, but require a 10% down payment and strict underwriting review.

Does credit score affect interest rates?
Absolutely. Higher credit scores generally receive lower interest rates and reduced mortgage insurance costs.

What credit score is needed for 0% down?
VA loans (for eligible buyers) often approve scores around 580–620. USDA loans typically require 640 for automated approval.

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