If you are planning to buy a home, your credit score is probably one of the first numbers you will worry about. The honest answer is that no single score unlocks every mortgage. The minimum depends on the loan program, the size of your down payment, how the lender’s automated system reviews your file, and the lender’s own internal rules. This guide explains the typical minimums for each major loan type, why a score that clears the minimum may still cost you thousands, and practical steps you can take before you apply.
Why There Is No Single “Magic” Credit Score
Many articles give one clean number, but that simplicity can mislead buyers. Lenders do not only look at a score. They also review your debt-to-income ratio, income documentation, assets, down payment, and the property itself. One source notes that in 2026, the underwriting system, lender overlay, down payment, debt ratio, income documentation, reserves, and property can matter as much as the number itself.
Another useful distinction is between the minimum score to qualify and the score that gets you the best rate. Those two numbers can be far apart. One guide describes them as 80+ points apart, and the gap between them is worth tens of thousands of dollars over the life of your loan.
Typical Minimum Credit Scores by Loan Type
Here is how the main programs generally compare. Treat these as starting points, not guarantees.
FHA loans. FHA loans are the most accessible option for many first-time buyers. Sources generally agree that a score of 580 or higher can allow a down payment of 3.5%, while a score between 500 and 579 usually requires 10% down. One source puts it this way: 580 or higher: Eligible for the minimum 3.5% down payment · 500–579: May still qualify, but a 10% down payment is required · Below 500: Generally ineligible under FHA guidelines. Keep in mind that many lenders add their own rules. Some lenders may require a 620 minimum credit score even for FHA loans.
Conventional loans. For years, 620 was the widely quoted floor for conventional mortgages backed by Fannie Mae and Freddie Mac. The picture has become more nuanced. One source explains that for new casefiles submitted on or after November 15, 2025, Fannie Mae’s Desktop Underwriter no longer requires a minimum third-party credit score. However, 620 remains a practical benchmark because many lenders still use it as their own requirement. As one lender-focused source puts it, 620 remains a common lender overlay and planning benchmark, and manually underwritten or specific conventional products may have separate score rules.
VA loans. VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses. The Department of Veterans Affairs does not set a minimum score, but lenders usually have their own floor. One source says VA loans offer zero down payment, no PMI, and interest rates typically 0.25% to 0.5% lower than conventional loans. Lender minimums commonly fall in the 580 to 620 range.
USDA loans. USDA loans serve buyers in eligible rural and suburban areas and can offer zero down payment. Sources disagree on the score picture. Some say many lenders look for 640 for streamlined approval. Another notes that the USDA’s program does not require a credit score under its published guidance. Because the rules and lender practices differ, confirm the current requirements directly with a USDA-approved lender.
Jumbo loans. Jumbo loans exceed conforming loan limits and are generally harder to qualify for. One source notes that jumbo loans are often 700 or higher, plus larger reserves. If you are buying in an expensive market, a higher score is usually important.
Score Tiers and What They Mean for Your Monthly Payment
Qualifying is only the first step. The score determines the pricing you receive, and pricing affects your payment for decades. Conventional pricing follows a grid called loan-level price adjustments. The mechanism behind conventional mortgage rate pricing is a system called Loan Level Price Adjustments (LLPAs) — mandatory risk-based surcharges set by Fannie Mae and Freddie Mac and applied to every conforming conventional loan. These surcharges depend heavily on both credit score and loan-to-value ratio.
Pricing does not move in a straight line. Lenders typically step rates by credit band, so some score changes matter more than others. One source explains that a 739 and a 740 can be priced meaningfully apart while a 700 and a 719 are often priced the same. The largest jumps are commonly reported near 740 and 760.
Here is a practical way to think about it:
- Below 620: Conventional loans are difficult, and FHA or other government-backed programs are often the realistic route.
- 620 to 679: Many conventional options exist, but pricing and mortgage insurance costs can be noticeably higher.
- 680 to 739: Pricing improves, and the monthly difference compared with lower bands can add up.
- 740 and above: Most borrowers reach strong pricing, although the gains flatten out at the top.
The real-world difference can be large. One comparison example shows that you could save $91,757 on interest over the life of the loan when comparing a 760-plus score with a 620-to-639 score on a $300,000 loan with 20% down, based on July 2025 myFICO data. Another source estimates that a difference between a 620 and a 760 credit score on the same loan can mean $300–$400 more per month. Your exact outcome will depend on the market, your loan amount, and the lender, so always compare actual quotes.
FHA vs. Conventional at Lower Scores
Many buyers in the 600s wonder whether FHA or conventional makes more sense. There is no universal answer, but one source makes a useful observation: below about 680, FHA often prices better all-in than conventional despite its mortgage insurance. The reason is that FHA mortgage insurance does not depend on your score in the same way private mortgage insurance does.
FHA has its own trade-off. For FHA loans with less than 10% down, MIP remains for the life of the loan. If you put 10% or more down, MIP drops off after 11 years. A conventional loan with private mortgage insurance can often be removed once you reach enough equity, so the long-term cost comparison matters. Some borrowers start with FHA and later refinance into a conventional loan once their score and equity improve.
Credit Score Models Are Changing
If you have heard about different scoring models, you are not alone. Lenders have traditionally relied on Classic FICO, but new options are arriving. One 2026 source reports that in April 2026, HUD announced that FHA would permit VantageScore 4.0 and FICO Score 10T as eligible mortgage credit scoring models in addition to Classic FICO. Adoption is still rolling out, and not every lender will switch immediately. Ask your lender which model they use for your file so you know which number to track.
Practical Steps to Improve Your Score Before Applying
The most effective steps are usually the simplest. Here is a practical checklist.
1. Pull your credit reports from all three bureaus. Free reports are available at ANNUALCREDITREPORT in the United States. Look for accounts that are not yours, incorrect late payments, or balances that have been reported wrongly.
2. Dispute errors promptly. Errors can be corrected, and that can sometimes produce meaningful score changes. One source notes that errors corrected within 30-45 days can immediately improve your score. Timelines vary, so begin early.
3. Lower your credit card balances. Utilization is one of the factors you can influence quickly. A common guideline is to keep balances well below your credit limits. One guide suggests that keeping usage below 30% of each limit, and ideally under 10%, can lift scores within one or two billing cycles.
4. Pay every bill on time. Payment history is typically the most important part of most scoring models, and recent late payments can hurt more than many people expect.
5. Avoid new credit before closing. Opening new accounts or taking on new loans can lower your score and raise your debt-to-income ratio at the same time. One mortgage source warns that a new installment loan lowers your score and raises debt-to-income simultaneously, which can retrigger pricing at a worse tier or kill the approval.
6. Keep old accounts open. Closing a card can reduce your available credit and change your utilization ratio. Keeping paid-off accounts open often helps, at least until your mortgage closes.
7. Be careful with mortgage inquiries. Shopping for a mortgage within a short window is generally treated more favorably than spreading applications across months. One source explains that multiple mortgage inquiries within 14-45 days (depending on the scoring model) count as a single inquiry, so you can shop around without penalty.
8. Ask about a rapid rescore. If you have paid down a balance or corrected an error, your lender may be able to request an updated score more quickly. One source says after paying down a balance, a lender may be able to request an updated score in days.
9. Check collections and past-due accounts. Some programs have specific rules for collections. For example, one source notes that for FHA loans, you may need to pay off or have a payment plan for collections over $2,000. Rules differ, so ask your lender early.
How Long Does It Take to Raise Your Score?
Timing depends on what is holding your score back. Some changes work quickly, while others take months. One source estimates that building positive payment history takes longer — typically 3-6 months minimum to see meaningful improvement. Another suggests that with focused effort, many buyers can gain 20–50 points in a few months. Results are not guaranteed, so plan your timeline with a buffer.
Common Mistakes Buyers Make
- Assuming one number applies everywhere. A lender’s minimum may be stricter than the program’s rule, so ask about overlays.
- Focusing only on approval. Qualifying for a loan does not mean you are getting the best rate.
- Ignoring mortgage insurance. A slightly lower rate may still cost more if the insurance is expensive for your profile.
- Making big financial moves during underwriting. Buying a car, opening credit cards, or changing jobs can affect approval.
- Forgetting that scores can change. One source notes that if it drops materially between application and closing, your lender may revise your rate or, in significant cases, withdraw approval.
Frequently Asked Questions
Can I buy a house with a 600 credit score? Possibly. An FHA loan may be an option if your score is in the 580 range or above and you can make a 3.5% down payment, though lender overlays can be stricter. A 600 score may also be workable with some lenders on other programs, but options are more limited and costs are usually higher.
What is the minimum credit score for a conventional loan? The traditional benchmark is 620, and many lenders still use it. Automated underwriting rules have shifted, so the rule you encounter may depend on the lender.
Is 700 a good score for a mortgage? Generally, a 700 score puts you in a solid position for many programs, though pricing can improve further in higher tiers. Jumbo loans commonly expect 700 or higher.
Does checking my own credit lower my score? Usually not. One source explains that checking your own credit is a “soft inquiry” that doesn’t affect your score.
Should I wait to buy until my score improves? It depends on your timeline, your savings, and local housing costs. Waiting can reduce your rate and mortgage insurance, but rent, home prices, and interest rates also change. Run both scenarios with real numbers.
Can my spouse’s credit help me qualify? It may, depending on the lender and loan program. Some lenders consider multiple borrowers’ scores in different ways, so confirm how your lender handles joint applications.
Final Checklist Before You Apply
- Pull reports from all three bureaus and correct errors.
- Know which score your lender will use and which model applies.
- Reduce credit card balances where possible.
- Avoid new debt and new credit accounts.
- Compare at least three Loan Estimates from different lenders.
- Check APR, points, lender credits, and mortgage insurance, not only the advertised rate.
- Ask about overlays, collections rules, and rapid rescore options.
- Confirm your down payment, reserves, and closing cost plan.
Conclusion
The credit score you need to buy a house depends on your loan type, down payment, lender, and overall financial profile. FHA programs may accept scores in the 500s or 580 range with the right down payment, conventional lenders often look for around 620 or higher, and the best pricing usually comes at 740 and above. Because the minimum to qualify and the score that gets you a strong rate can be very different, the smartest approach is to check your reports early, improve what you can, and compare real loan offers. A focused plan can help you enter the process with more confidence and fewer surprises.
