What Is a Good Credit Score to Buy a House? Minimum Requirements by Loan Type

The minimum credit score to buy a house depends on which type of mortgage you're applying for. FHA loans accept scores as low as 500. Conventional loans typically require a 620. VA loans have no set minimum, though most lenders require at least a 620. The higher your score, the lower your interest rate — which can save you tens of thousands of dollars over the life of a loan.

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Minimum Credit Scores by Mortgage Type

Sources: HUD (FHA), Fannie Mae Selling Guide, VA Benefits Administration, USDA Rural Development.

FHA Loans: The Most Accessible Option

Federal Housing Administration (FHA) loans are insured by the US government, which allows lenders to offer them to borrowers with lower credit scores and smaller down payments.

Key FHA score requirements:

• 500–579: You can qualify with a 10% down payment
• 580 and above: You qualify for the 3.5% down payment option

FHA loans require mortgage insurance premiums (MIP) for the life of the loan if you put down less than 10%. This adds to your monthly payment but makes homeownership accessible with a lower score.

Individual lenders may require higher scores than FHA minimums. A lender "overlay" is a stricter internal requirement above the federal minimum. Many FHA lenders require a 620 or 640 even though the program allows 580.

Conventional Loans: Better Terms at Higher Scores

Conventional mortgages are not government-backed. They follow guidelines set by Fannie Mae and Freddie Mac. The minimum qualifying score is 620, but the best rates are reserved for borrowers with 740 and above.

Conventional loans don't require permanent mortgage insurance. If you put down 20% or reach 20% equity, you can eliminate private mortgage insurance (PMI) — a savings that can add up significantly over time.

Conventional loan pricing tiers (approximate):

• 620–639: Qualifying minimum; highest rates
• 640–699: Improved rates; some programs available
• 700–739: Good rates; wider product selection
• 740–759: Very good rates
• 760+: Best rates available

VA Loans: Best Option for Eligible Veterans

VA loans are backed by the Department of Veterans Affairs and available to eligible veterans, active-duty service members, and qualifying surviving spouses. They offer significant advantages:

• No down payment required
• No private mortgage insurance
• Competitive interest rates
• No official minimum credit score from the VA

The VA itself does not set a minimum credit score, but virtually all VA-approved lenders require a minimum of 620. Some lenders go as low as 580 for VA loans.

USDA Loans: For Rural and Suburban Buyers

USDA loans are backed by the US Department of Agriculture for properties in designated rural and suburban areas. The USDA guarantees loans made by approved lenders.

The USDA doesn't set a strict minimum score, but most lenders require at least 640 for automated underwriting approval. Scores below 640 may still qualify through manual underwriting with additional documentation.

USDA loans offer no down payment for eligible properties and areas.

How Your Credit Score Affects Your Mortgage Rate

The interest rate difference between a 620 score and a 760 score on a 30-year fixed mortgage can be a full percentage point or more. On a $300,000 loan, that's a meaningful monthly payment difference that compounds over 30 years.

Rough illustration (rates change daily; check current rates with lenders):

• 760+ score: Best available rate
• 700–759: Slightly higher rate
• 660–699: Noticeably higher rate
• 620–659: Significantly higher rate; consider FHA

Even a 20-point score improvement before applying can move you into a better pricing tier.

How to Improve Your Credit Score Before Applying

If your score isn't where you need it, even six months of focused effort can make a meaningful difference.

Highest-impact actions:

1. Bring all accounts current. Any open delinquencies will disqualify you for most loan types. Getting current is the first priority.

2. Pay down credit card balances. Getting your utilization below 30% — ideally below 10% — can add significant points quickly. This is one of the fastest ways to raise your score before a mortgage application.

3. Don't open new accounts. New accounts lower your average account age and trigger hard inquiries. Avoid any new credit for at least six months before applying.

4. Don't close old accounts. Closing accounts reduces your available credit and can raise your utilization ratio. Leave old cards open even if you're not using them.

5. Dispute errors on your credit report. Pull your reports from all three bureaus at AnnualCreditReport.com and dispute any inaccuracies. An error that's hurting your score can be corrected before you apply.

Which Credit Score Do Mortgage Lenders Use?

Most mortgage lenders use FICO scores specifically — not VantageScore. For conventional loans, lenders typically pull FICO scores from all three bureaus (Experian, TransUnion, Equifax) and use the middle score of the three for qualification.

If there are two borrowers (co-borrowers), lenders use the lower of the two middle scores for qualifying purposes.

Lenders use older FICO versions for mortgage qualification: FICO Score 2 (Experian), FICO Score 5 (Equifax), and FICO Score 4 (TransUnion). These differ slightly from the FICO Score 8 you typically see from monitoring services, so your mortgage-qualifying score may be slightly different from what you see online.

Frequently Asked Questions

Can I buy a house with a 580 credit score?

Yes. An FHA loan allows a 580 credit score with a 3.5% down payment. Below 580 (down to 500) you'll need a 10% down payment for FHA. Most other loan programs require at least 620.

Does my spouse's credit score affect our joint mortgage application?

If you apply jointly, lenders use the lower qualifying score of the two applicants. If one partner has significantly lower credit, it may be worth applying individually (with only the higher-score partner on the loan) and adding the other to the title separately.

How long before buying a house should I start improving my credit?

Start at least six to twelve months before you plan to apply. This gives enough time for payment history improvements to register, for disputes to be resolved, and for the score to stabilize after any credit inquiries.

Does getting pre-approved hurt my credit score?

Yes, a mortgage pre-approval triggers a hard inquiry, which can lower your score by a few points. However, FICO rate-shopping rules count multiple mortgage inquiries within 14–45 days as a single inquiry, so getting quotes from multiple lenders during the same window has minimal impact.

Should I pay off all debt before applying for a mortgage?

Paying down credit card debt (revolving credit) helps your score by lowering utilization. Paying off installment loans (auto, student) has less impact on your score but improves your debt-to-income ratio, which is also important for mortgage qualification. Focus on credit cards first for score impact.

Sources

• HUD — FHA Credit Score Requirements
• Fannie Mae — Selling Guide: Credit Score Requirements
• VA Benefits Administration — VA Home Loans
• USDA Rural Development — Single Family Housing Guaranteed Loan Program
• Consumer Financial Protection Bureau — What is a debt-to-income ratio?