What Credit Score Do You Need to Buy a House?
Your credit score is one of the biggest factors in getting approved for a mortgage. Learn what scores qualify for different loan types and how to improve yours before applying.
Short answer: you can buy a house with a credit score as low as 500 if you go FHA. But the score you should have is a different question entirely.
Here's what each loan type actually requires:
Conventional (Fannie/Freddie): 620 minimum. These are the standard loans most people get. Score above 740? You get the best rates.
FHA: 580 minimum with 3.5% down. Between 500-579? You can still qualify but need 10% down. This is the most forgiving option for lower scores.
VA: No official minimum, but most lenders want at least 580-620. Zero down, no PMI. If you're a vet, this is almost always your best bet.
USDA: 640 minimum. Zero down in eligible rural/suburban areas.
Why your score matters more than you think
It's not just about getting approved. Your score determines your interest rate, and the difference adds up fast.
On a $350k loan:
- 760+ score → ~6.25% rate → ~$2,155/month
- 660 score → ~7.00% rate → ~$2,328/month
- 620 score → ~7.50% rate → ~$2,447/month
That's ~$300/month or over $100k in extra interest over 30 years between the best and worst tier.
What to do right now
Check your score. If it's under 620, start improving it before you shop for a home. If it's over 740, you're in the driver's seat. And if you're somewhere in the middle, you still have options — just know what you're shopping for.
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