What Credit Score Do You Need to Buy a House?

The real minimum credit scores by loan type — and how much your score actually moves your interest rate and monthly payment. Plus the fastest legitimate ways to raise it before you buy.

Quick Answer

You don't need perfect credit to buy a home. Many lenders look for about 620 on conventional loans, though Fannie Mae and Freddie Mac no longer set a hard minimum for automated approvals. FHA's program minimum is 580 with the 3.5% minimum down payment (scores of 500–579 require a minimum down payment of 10% of the price), and there's no set minimum for VA or USDA, though most lenders look for around 580–620. A higher score doesn't just get you approved — it earns a lower interest rate, which can save tens of thousands of dollars over the life of the loan.

Minimum credit score by loan type

  • Conventional — many lenders look for about 620, though Fannie Mae and Freddie Mac no longer set a hard minimum for automated approvals; best pricing at 740+.
  • FHA — program minimum of 580 with the 3.5% minimum down payment; scores of 500–579 require a minimum down payment of 10% of the price.
  • VA — no VA-set minimum; most lenders want ~580–620.
  • USDA — no set minimum; ~640 streamlines automated approval.
  • Jumbo — typically 700+ given the larger loan size.

How much your score affects your rate

Interest rate pricing is tiered by credit score. Moving from a 660 to a 740, for example, can lower your rate meaningfully — and on a 30-year loan, even a quarter- or half-point difference adds up to thousands of dollars. That's why it's often worth a short delay to bump your score before locking a rate.

Conventional loans are the most credit-sensitive; FHA pricing is flatter across score bands, which is part of why FHA can be the better deal at lower scores.

Fast, legitimate ways to raise your score

  • Pay down revolving balances so you're using well under 30% of each card's limit.
  • Don't close old accounts — length of history helps your score.
  • Avoid opening new credit or financing purchases in the months before applying.
  • Dispute genuine errors on your report; they're more common than people expect.
  • Ask your lender about a rapid rescore if a paid-down balance hasn't updated yet.

Frequently Asked Questions

What is the lowest credit score to buy a house?

The practical floor is about 500 with an FHA loan, where scores of 500–579 require a minimum down payment of 10% of the price; FHA's program minimum is 580 with the 3.5% minimum down payment. Many lenders look for about 620 on conventional loans, though Fannie Mae and Freddie Mac no longer set a hard minimum for automated approvals. VA and USDA loans have no government-set minimum, though most lenders look for roughly 580–620. Terms and eligibility vary. Below those levels, focus on a short credit-building plan first.

Does my credit score really change my interest rate that much?

Yes, especially on conventional loans, where pricing is tiered by score. Jumping from the low-600s into the 700s can lower your rate noticeably, and over 30 years that can mean tens of thousands of dollars in savings. It's often worth a brief delay to raise your score before you lock.

Which credit score do mortgage lenders use?

Mortgage lenders pull all three bureaus (Equifax, Experian, TransUnion) and typically use the middle of the three scores. For a couple applying together, pricing is generally based on the lower middle score, though some programs average the two for eligibility. This differs from the free scores many consumer apps show, so your mortgage score may vary.

Can I buy a house with no credit score at all?

Sometimes. Certain programs allow manual underwriting using alternative credit — rent, utility, and insurance payment history — for buyers with thin or no traditional credit. It's more work but very doable. A broker experienced in manual underwriting can tell you whether it fits your situation.

How long does it take to improve my score enough to buy?

Often faster than people expect. Paying down credit card balances can lift a score within one or two billing cycles, and correcting reporting errors can help quickly. Bigger repairs take longer. A lender can review your report and give you a specific, prioritized list of the highest-impact moves.