What Credit Score Do You Need to Buy a House?

Buying a home is one of the biggest financial decisions you’ll ever make — and your credit score is one of the biggest factors in whether you qualify, what interest rate you get, and how much house you can afford. The difference between a 620 and a 740 score can mean tens of thousands of dollars over the life of a mortgage.

But here’s what most people don’t realize: there’s no single “minimum score” to buy a house. It depends entirely on the type of loan you’re pursuing. Let’s break down each one.

Minimum Scores by Loan Type

FHA Loans

Minimum score: 500 (with 10% down) or 580 (with 3.5% down)

FHA loans are backed by the Federal Housing Administration and are designed for first-time and lower-credit buyers. They’re the most accessible option for people with less-than-perfect credit. However, having a score below 580 means you’ll need a significantly larger down payment — 10% instead of 3.5%.

Keep in mind that while the FHA sets these minimums, individual lenders can set their own (higher) requirements. Many FHA lenders won’t go below 580, and some set their minimum at 620.

Conventional Loans

Minimum score: 620

Conventional loans aren’t backed by the government, so lenders take on more risk — which means higher credit requirements. A 620 is the technical minimum, but you’ll get much better terms at 680+, and the best rates are reserved for 740+.

Conventional loans also require private mortgage insurance (PMI) if you put down less than 20%. The cost of PMI is directly tied to your credit score — a lower score means higher monthly PMI payments. If you want to dive deeper, check out our guide on Building Credit from Scratch: The Complete Beginner’s Guide.

VA Loans

Minimum score: No official minimum (most lenders require 620)

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. The VA itself doesn’t set a minimum credit score, but most VA-approved lenders require at least 620. VA loans offer some of the best terms available — no down payment, no PMI, and competitive interest rates.

USDA Loans

Minimum score: 640

USDA loans are for homes in eligible rural and suburban areas. They offer zero down payment but require a 640 score for automatic approval through their Guaranteed Underwriting System. Below 640, you may still qualify with manual underwriting, but the process is slower and approval isn’t guaranteed.

How Your Score Affects Your Interest Rate

Meeting the minimum score gets you in the door. But the score you actually have determines what you’ll pay. Here’s a realistic example based on a $350,000 30-year fixed mortgage: We cover this in more detail in our article on How to Build Credit From Scratch (No Credit History).

• 760+ score: ~6.5% rate → $2,212/month → $446,247 total interest
• 700-759 score: ~6.9% rate → $2,306/month → $480,170 total interest
• 660-699 score: ~7.3% rate → $2,402/month → $514,726 total interest
• 620-659 score: ~7.9% rate → $2,548/month → $567,203 total interest

The difference between a 620 and a 760 score is $336 per month and over $120,000 in total interest over the life of the loan. That’s real money — and it’s why even a small score improvement before applying can pay off enormously.

Which Score Do Mortgage Lenders Use?

This is where it gets confusing. When you check your credit score through your bank or a free app, you’re usually seeing a VantageScore or a consumer FICO Score 8. Mortgage lenders don’t use either of those.

Most mortgage lenders use older FICO models:

• Equifax: FICO Score 5
• Experian: FICO Score 2
• TransUnion: FICO Score 4

They pull all three and use the middle score. If your scores are 680, 695, and 710, the lender uses 695. For joint applications, they use the lower of the two borrowers’ middle scores. For a closer look at this topic, read Secured Credit Cards vs. Credit Builder Loans: Which Is Right for You?.

These older models often produce scores that are 20-40 points lower than what you see in consumer apps. So if your app shows 700, your mortgage score might be closer to 660-680. This catches a lot of people off guard.

How to Improve Your Score Before Applying

If you’re planning to buy a home in the next 6-12 months, here’s how to maximize your mortgage score:

• Pay down credit card balances. Get utilization under 10% on all cards. This is the fastest way to boost your score — it can add 30-50 points in a single billing cycle.
• Don’t open new accounts. New credit inquiries and young accounts lower your average age of credit. Avoid new cards, car loans, or financing for at least 6 months before applying.
• Don’t close old accounts. Even if you’re not using them, old accounts help your average age of credit and overall utilization ratio.
• Dispute any errors. Check all three reports for inaccurate late payments, wrong balances, or accounts that aren’t yours. Correcting errors can significantly boost your score.
• Become an authorized user. Being added to a family member’s old, low-utilization card can add positive history to your file.

The Score vs. the Full Picture

Your credit score is important, but it’s not the only thing lenders look at. They also evaluate:

• Debt-to-income ratio (DTI) — your monthly debt payments divided by your gross income. Most lenders want this under 43%.
• Employment history — stable employment for at least 2 years is preferred
• Down payment — more money down can offset a lower score
• Cash reserves — lenders like to see 2-6 months of mortgage payments in savings
• The credit report itself — recent late payments, collections, or bankruptcies raise flags beyond what the score shows

A 680 score with no recent negatives and low debt is a stronger application than a 700 score with a fresh collection and maxed-out cards.

Ready to Get Mortgage-Ready?

If homeownership is your goal, your credit is the foundation. Whether you’re 6 months out or 2 years out, having a plan to optimize your score before you apply can save you tens of thousands of dollars.

At Score Pros, we specialize in getting clients mortgage-ready. Our free Credit Clarity Session gives you a clear picture of where your credit stands today, what score range you can realistically reach, and the fastest path to get there. If you’re thinking about buying a home, start here.

Key Takeaways

• FHA loans: 580+ for 3.5% down, 500+ for 10% down
• Conventional loans: 620+ minimum, 740+ for best rates
• VA loans: No official minimum, most lenders want 620+
• USDA loans: 640+ for automatic approval
• Mortgage lenders use older FICO models — your score may be 20-40 points lower than what consumer apps show
• The difference between a 620 and 760 score can cost over $120,000 in extra interest on a $350K mortgage
• Pay down cards, dispute errors, and avoid new accounts before applying

Your credit score determines what kind of homeowner you get to be. Make sure it’s working for you, not against you.

Ready to start building real credit? Whether you’re starting from zero or rebuilding after a setback, we can create a personalized plan for you. Get your free consultation today.