What Credit Score Do You Need to Buy a House?

Hunter Letendre
Jan 2
3 min read

Updated: 4 days ago

What Credit Score Do You Need to Buy a House?

Why Does Your Credit Score Matter When Buying a Home?

Your credit score to buy a house plays a crucial role in whether you get approved for a mortgage—and at what rate. It reflects your financial reliability and history with managing debt. Mortgage lenders use this number to assess the level of risk in lending to you.

A higher credit score can lead to:

Lower interest rates
Better loan terms
Increased likelihood of approval

According to The Mortgage Report, good credit shows that you consistently manage your finances well. However, many buyers overestimate what score they need. Fannie Mae reports only 32% of consumers correctly understand mortgage credit score requirements.

What Is the Minimum Credit Score to Buy a House by Loan Type?

The required credit score to buy a house varies by loan type and lender. Here's a breakdown of the general minimums:

What Credit Score Do You Need for a Conventional Loan?

Minimum Score: 620
Conventional loans are popular but require decent credit.
A score of 620 or higher is usually the baseline for approval.

Can You Get an FHA Loan with Bad Credit?

Minimum Score: 500 (with 10% down)
580 or higher is preferred for 3.5% down

FHA loans are government-backed and more flexible, ideal for first-time buyers or those with lower credit.

Do VA Loans Require a Credit Score?

Recommended Score: 620

VA loans are for eligible veterans and often have no official credit score minimum, though most lenders still look for at least 620.

Is Your Credit Score High Enough for a USDA Loan?

Minimum Score: 640

USDA loans are for rural properties and require a solid score—usually 640 or higher—to qualify.

Note: These are general guidelines. Each lender may have their own internal thresholds and risk assessments.

How Can You Improve Your Credit Score Before Buying a Home?

Improving your credit score is one of the best ways to secure better mortgage options. Try these proven strategies:

1. Are You Paying Bills On Time?

Payment history is the most significant credit factor. Late payments can hurt your score fast. Set up autopay to stay on track.

2. Can You Lower Your Credit Utilization?

Aim to use 30% or less of your available credit. Paying off credit cards or increasing your credit limits (without adding debt) can help.

3. Should You Avoid New Credit Applications?

Too many credit applications can trigger multiple hard inquiries, reducing your score. Hold off on applying for new credit before getting a mortgage.

4. Have You Checked for Credit Report Errors?

Mistakes can drag your score down. Check all three reports (Equifax, Experian, TransUnion) at AnnualCreditReport.com and dispute any inaccuracies.

Can You Still Qualify for a Mortgage with a Low Credit Score?

Yes, it's possible—especially if:

You have a strong income or low debt-to-income ratio
You make a larger down payment
You apply through a lender that works with lower-credit borrowers

Your credit score to buy a house is important, but not the only factor. Lenders also consider employment history, savings, and your total debt load.

Final Thoughts: What’s Your Next Step Toward Homeownership?

Understanding the required credit score to buy a house gives you a head start in the home buying journey. Whether your score is high or still needs work, loan options are available—and the right lender can help you find them.

Reach out to me, Hunter Letendre, REALTOR® with Berkshire Hathaway HomeServices Verani Realty. I serve New Hampshire, Maine, and Northern Massachusetts. I can help you check your credit score, identify your best loan options and connect you to a trusted mortgage professional.