What credit score do you need to buy a house?
If you are thinking about buying a home, one of the first questions is what credit score you actually need. The honest answer has two parts: the minimum to qualify, and the much better number that saves you real money. They are not the same, and the gap between them can be worth tens of thousands of dollars.
The minimums, by loan type
Different loan programs set different floors. Here is where they stand.
| Loan type | Typical minimum score | Note |
|---|---|---|
| FHA (3.5% down) | 580 | 500 to 579 possible with 10% down |
| Conventional | 620 | Many lenders want 640-plus in practice |
| VA | No federal minimum | Lenders usually want 580 to 620 |
| USDA | No federal minimum | Lenders typically want 640 |
Minimum is not the same as approved
Clearing the score floor gets you in the door. It does not get you the best deal. Lenders also weigh your income, debt, savings, and payment history, and they often add their own score requirement, called an overlay, 20 to 40 points above the program minimum. So a program may allow 580 while the lender in front of you wants 620.
Why a higher score is worth chasing
The score does not just decide whether you qualify. It sets your interest rate, and the rate compounds over 30 years. Buyers with scores of 740 and above generally earn the most favorable pricing. Getting there before you apply, rather than after, is one of the highest-return financial moves a buyer can make. For context, the median score for a purchase loan has recently sat near 768, well above every minimum.
How to improve it before you apply
The fastest gains come from two places: disputing errors on your credit report, which can move a score within about a month, and paying down high credit-card balances, which lowers your utilization quickly. Longer term, on-time payments and keeping old accounts open build the score steadily. Checking your own credit does not hurt it; only a lender's hard inquiry causes a small, temporary dip.
Common questions
What is the lowest credit score to buy a house?
For an FHA loan, 580 with 3.5 percent down, or 500 with 10 percent down. Conventional loans typically need 620. VA and USDA set no federal minimum, though lenders usually want 580 to 640. These are program floors; many lenders add their own higher requirement.
Does my credit score change my mortgage rate?
Significantly. Qualifying is only the floor. On a large mortgage, moving from the low 600s to 760-plus can save tens of thousands of dollars in interest over the life of the loan, because a higher score earns a lower rate.
How fast can I raise my score before buying?
Some moves work in weeks: disputing report errors and paying down high credit-card balances can add points within a month or two. Reaching the best conventional tier from a low start usually takes 6 to 12 months of on-time payments and lower balances.
Sources: Opendoor 2026 credit score guide; FICO data, October 2025; Optimal Blue median FICO, 2025; UQUAL 2026 mortgage credit requirements.
This is general information, not financial advice. A licensed lender can tell you what your specific score qualifies for.
Written by Nikola G.