Quick answer: The minimum credit score to buy a house ranges from 500 (FHA with 10% down) to 620 (conventional loans). However, a score of 740 or higher gets you the best interest rates, potentially saving you tens of thousands of dollars over the life of your loan. No single number is a hard cutoff — different loan programs serve different credit profiles.
If you're planning to buy a home this year, your credit score is one of the most important numbers in the process. It affects whether you qualify for a mortgage, which loan programs are available to you, what interest rate you'll receive, and ultimately how much your home will cost over time.
The good news? You don't need perfect credit to buy a house. There are multiple loan programs designed specifically for buyers at different credit levels. This guide breaks down exactly what score you need for each one, how your score affects your rate, and what you can do right now to improve your position.
Minimum credit score by loan type
Not all mortgages are the same. Each loan program has different credit score thresholds, down payment requirements, and trade-offs. Here's a side-by-side comparison of every major loan type available in 2026.
| Loan type | Min. score | Down payment | Best for |
|---|---|---|---|
| FHA loan | 500–580 | 3.5% (580+) or 10% (500–579) | First-time buyers, lower credit |
| Conventional loan | 620+ | 3–20% | Good credit, want to avoid MIP |
| VA loan | No official min (620 typical) | 0% (no down payment) | Veterans, active military |
| USDA loan | 640+ | 0% (no down payment) | Rural/suburban areas, moderate income |
| Jumbo loan | 700–720+ | 10–20% | High-value homes above conforming limits |
FHA loans: the most flexible option (500–580)
FHA loans, backed by the Federal Housing Administration, remain the most accessible path to homeownership for buyers with lower credit scores. The program has two tiers based on your score.
With a credit score of 580 or higher, you qualify for the standard 3.5% down payment. On a $350,000 home, that's $12,250 down. Drop below 580 but stay above 500, and you'll need 10% down — that's $35,000, nearly three times as much cash upfront.
There's an important catch that many guides don't mention: FHA loans come with mortgage insurance premiums (MIP) that last for the entire life of the loan if you put less than 10% down. You'll pay 1.75% upfront plus an annual premium of about 0.55%, divided into monthly payments. This adds real cost over time.
In 2026, FHA loan limits range from $541,287 in most areas to $1,249,125 in high-cost markets like San Francisco and New York City.
Conventional loans: the sweet spot for good credit (620+)
Conventional loans backed by Fannie Mae and Freddie Mac require a minimum score of 620. These loans offer the most flexibility in terms and the lowest long-term costs for borrowers with strong credit profiles.
The real advantage kicks in at the 740 mark. At this level, you qualify for the lowest available interest rates. If you can also put 20% down, you avoid private mortgage insurance (PMI) entirely — a significant monthly savings.
An important 2025 update: Fannie Mae now averages the median scores of all borrowers on an application rather than using the lowest score. This means couples where one partner has excellent credit and the other has fair credit may now qualify more easily for conventional financing.
VA loans: best deal for eligible veterans (no official minimum)
The Department of Veterans Affairs doesn't set an official minimum credit score for VA loans. However, most individual lenders require at least 580 to 620. VA loans are exceptional because they require zero down payment and charge no monthly mortgage insurance.
If you're an eligible veteran or active-duty service member, a VA loan is almost always the most favorable option regardless of your credit score. The combination of no down payment, no PMI, and competitive rates makes this program hard to beat.
USDA loans: zero down for rural and suburban areas (640+)
USDA loans are designed for moderate-income buyers purchasing in eligible rural and suburban areas. They require no down payment and have competitive rates, but most lenders want a minimum score of 640. There are also income limits based on your area's median income.
How your credit score affects your mortgage rate
Your credit score doesn't just determine whether you qualify — it directly controls how much you'll pay. Even small differences in interest rate translate to enormous savings (or costs) over a 30-year mortgage.
Rate comparison by credit score tier
The numbers don't lie. The difference between a 760 credit score and a 620 score on a $320,000 mortgage is about $296 per month — and over 30 years, that adds up to over $155,000 in extra interest. That's the price of a second house.
This is exactly why improving your score before applying for a mortgage is one of the highest-return financial moves you can make. Even moving from 660 to 740 can save you $70,000 or more over the life of your loan.
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Try the calculator7 ways to raise your credit score before applying
If your score isn't where you want it, the good news is that meaningful improvement is possible within 30 to 90 days. Here are the most effective strategies, ranked by impact.
Fastest ways to boost your score
Pay down credit card balances below 30%
Credit utilization is the second-biggest factor in your score. Getting each card below 30% of its limit — ideally below 10% — can boost your score by 20 to 50 points within one billing cycle.
Dispute errors on your credit report
About 1 in 5 credit reports contain errors. Pull your free reports from AnnualCreditReport.com and dispute any incorrect late payments, wrong balances, or accounts that aren't yours.
Ask for a credit limit increase
Without spending more, a higher credit limit instantly lowers your utilization ratio. Call your card issuer and ask — many will approve over the phone if you have a good payment history.
Become an authorized user
If a family member has a credit card with a long history of on-time payments and low utilization, ask them to add you as an authorized user. Their positive history gets added to your report.
Don't close old credit cards
Length of credit history matters. Closing your oldest card shortens your average account age and can actually drop your score. Keep it open, even if you rarely use it.
Avoid new credit applications
Each new application triggers a hard inquiry, which can temporarily lower your score by 5 to 10 points. In the 6 months before applying for a mortgage, avoid opening new cards, car loans, or store credit.
Use a rapid rescore through your lender
If you've recently paid off debt or corrected errors, your mortgage lender can request a rapid rescore to update your credit within days instead of waiting 30 to 45 days for the normal reporting cycle.
What if your score is below 580?
If your credit score is currently below the FHA minimum of 580, homeownership isn't off the table — but it will take some preparation. Here are your realistic options.
First, focus on the credit improvement steps above. Most borrowers can move from the 500s to above 580 within 3 to 6 months with consistent effort, especially by paying down credit cards and disputing report errors.
Second, look into manual underwriting. Some lenders will review your full financial picture rather than relying solely on automated credit scoring. If you have strong employment history, significant savings, or low existing debt, a manual underwrite can overcome a lower score.
Third, consider non-traditional credit documentation. If you have limited credit history rather than bad credit, some loan programs accept alternative evidence like 12 months of on-time rent payments, utility bills, or insurance payments to demonstrate creditworthiness.
Finally, some state and local programs offer special assistance for buyers working to improve their credit. Many include free credit counseling and homebuyer education courses that can help you build a stronger application.
Beyond credit score: what else lenders look at
Your credit score opens the door, but lenders evaluate your full financial picture before approving a mortgage. Here are the other key factors.
Debt-to-income ratio (DTI): This measures your monthly debt payments divided by your gross monthly income. Most lenders want your total DTI below 43%, though FHA allows up to 50% in some cases. The lower your DTI, the stronger your application.
Employment history: Lenders typically want to see two years of stable employment in the same field. Self-employed borrowers need two years of tax returns showing consistent income.
Down payment and savings: A larger down payment reduces the lender's risk and can offset a lower credit score. Having cash reserves — 2 to 6 months of mortgage payments in savings — also strengthens your application.
Property appraisal: The home itself must appraise at or above the purchase price. FHA appraisals have stricter safety and habitability requirements than conventional ones.
Frequently asked questions
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