Buying a house does not require one universal credit score. The score you need depends on the mortgage program, the lender, your credit history, income, existing debts, and down payment. Some government-backed mortgages allow lower scores under specific conditions, while conventional mortgages can use different underwriting systems.
The key question is not just whether your score is high enough. It is whether your full financial profile qualifies for a mortgage you can comfortably afford. This guide explains the main U.S. mortgage options, how credit affects loan costs, and what to do if your score needs work. Mortgage rules can change, so confirm requirements with an approved lender before applying.
What Credit Score Do You Need to Buy a House?
There is no single credit score that guarantees mortgage approval. These are useful starting points, but program rules and lender requirements differ.
| Mortgage type | Credit score considerations | Down payment considerations |
|---|---|---|
| Conventional | Depends on the loan program and underwriting method. Fannie Mae’s Desktop Underwriter no longer applies a universal minimum score. | Some eligible programs allow as little as 3% down. |
| FHA | Generally 580 or higher for the 3.5% minimum-down-payment policy; 500–579 for the 10% down-payment band. | 3.5% with a score of at least 580; 10% with a score of 500–579. |
| VA | The Department of Veterans Affairs does not set a universal minimum score. Lenders may. | Eligible borrowers may qualify with no down payment, subject to program rules. |
| USDA | No set national credit score requirement for the guaranteed program, but underwriting and lender standards apply. | Eligible guaranteed loans can offer 100% financing. |
Important: These are program-level guidelines, not promises of approval. A lender may apply stricter standards, and all other eligibility requirements still matter. See the official guidance from the Consumer Financial Protection Bureau (CFPB).
Mortgage Credit Score Requirements by Loan Type
1. Conventional mortgages
Conventional mortgages are not insured by the Federal Housing Administration or guaranteed by the VA or USDA. Many conforming conventional loans may be eligible for purchase by Fannie Mae or Freddie Mac if they meet the applicable rules.
A common assumption is that every conventional mortgage requires a credit score of at least 620. That is not a universal rule for every underwriting route. Starting November 15, 2025, Fannie Mae’s Desktop Underwriter (DU) stopped requiring a minimum third-party credit score as an eligibility threshold and instead evaluates credit risk using its own assessment. Lenders must still follow applicable requirements, and lender-specific standards may be stricter. Read Fannie Mae’s DU credit risk assessment update.
Freddie Mac’s published fixed-rate mortgage guidance lists a minimum indicator score of 620 unless another requirement or exception applies. Check the rules for the specific product and underwriting path at Freddie Mac’s fixed-rate mortgage guidance.
Some eligible conventional programs permit down payments as low as 3%, but program eligibility requirements apply. Lenders may assess payment history, the full credit report, income, debt-to-income ratio, savings, down payment, property value, and loan details.
If your score is below 620, do not automatically rule out conventional financing. Ask a lender to assess your application under the specific program and underwriting system available.
2. FHA loans
FHA loans are insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). They are often considered by buyers who have limited savings or need a mortgage program with flexible credit guidelines.
| FHA minimum decision credit score | Minimum down payment under standard policy |
|---|---|
| 580 or higher | 3.5% |
| 500–579 | 10% |
| Below 500 | Generally not eligible for FHA-insured financing |
These are FHA program-level thresholds, not guarantees that a lender will approve an application. A lender can require a higher score, and borrowers must meet other underwriting requirements. Check HUD’s official FHA mortgagee letters and policy guidance for current policy.
For a home priced at $250,000, a 3.5% down payment equals $8,750; a 10% down payment equals $25,000. These examples cover only the down payment. Closing costs, prepaid expenses, and other transaction costs may increase the cash you need.
FHA loans also involve mortgage insurance costs. A smaller down payment may make a purchase more accessible, but it does not automatically make an FHA loan cheaper than a conventional mortgage over the life of the loan. Compare interest, mortgage insurance, fees, and total expected payments.
3. VA loans
VA-backed home loans are available to eligible veterans, qualifying service members, and certain surviving spouses. Private lenders originate these loans, while the Department of Veterans Affairs guarantees part of the loan under program rules.
The VA does not establish a universal minimum credit score. However, lenders evaluate creditworthiness and may set their own minimum scores. The VA explains this distinction in its home loan eligibility and limits guidance.
An eligible borrower may be able to buy a home with no down payment, subject to eligibility, entitlement, appraisal, and loan requirements. VA loans generally do not require private mortgage insurance (PMI), though a VA funding fee may apply unless the borrower is exempt.
If your score is lower than you would like, contact more than one VA-approved lender and ask whether it has a credit score cutoff. VA service-related eligibility and mortgage approval are separate decisions; meeting the first does not guarantee the second.
4. USDA loans
The U.S. Department of Agriculture’s Single Family Housing Guaranteed Loan Program helps eligible households purchase homes in qualifying rural areas. Applicants must meet the program’s income, property, occupancy, and other requirements.
USDA states that its guaranteed program has no set credit score requirement at the national program level, but applicants must demonstrate willingness and ability to manage debt. Lenders may impose additional requirements, and underwriting can differ depending on whether a file is evaluated through the Guaranteed Underwriting System or manually. See USDA Rural Development’s official program page.
Eligible USDA guaranteed loans can offer 100% financing, so a down payment may not be required. This does not mean the purchase has no upfront costs: closing costs and other expenses still need to be covered or handled through permitted arrangements.
What Credit Score Do First-Time Homebuyers Need?
There is no separate universal credit score requirement just because you are buying your first home. A first-time buyer may qualify for conventional, FHA, VA, or USDA financing if they meet that program’s requirements.
First, check your actual mortgage eligibility. A score shown by a credit card issuer or consumer app may differ from the score or model a mortgage lender uses. Second, look beyond the down payment: estimate property taxes, homeowners insurance, maintenance, and mortgage insurance where applicable. Third, ask about state and local down-payment or closing-cost assistance programs. Eligibility rules may include income and purchase-price limits or homebuyer education.
How Does Your Credit Score Affect Mortgage Interest Rates?
Your credit profile can affect both mortgage eligibility and the interest rate or terms offered. Generally, a stronger credit profile can improve the chance of receiving favorable terms, but the size of any difference depends on the lender, loan program, market conditions, loan characteristics, and the rest of your application.
Even a small interest-rate difference can change the total paid over a long mortgage term. The exact difference should be calculated from actual loan offers; there is no universal rate adjustment for a particular score.
When comparing offers, review the annual percentage rate (APR), lender fees, discount points, mortgage insurance, and cash needed at closing—not just the advertised interest rate. Request Loan Estimates from lenders and compare similar loan amounts and terms. The CFPB’s Loan Estimate guide explains how to use this document.
Other Factors Mortgage Lenders Consider
Income and employment
Lenders review income and documentation to determine whether it is sufficient and likely to continue under applicable rules. Requirements may differ for salaried workers, self-employed borrowers, and people with variable income.
Debt-to-income ratio
Your debt-to-income ratio (DTI) compares monthly debt payments with gross monthly income. A borrower with a strong score may still struggle to qualify if existing obligations leave too little room for a mortgage payment.
Down payment and savings
A larger down payment reduces the amount borrowed and may affect eligibility or pricing. Lenders may also review available assets and funds needed for closing.
Credit history
Late payments, collections, bankruptcies, foreclosures, and other relevant information may be reviewed. The timing and circumstances of these items, along with program rules, can affect how they are evaluated.
Property and loan details
The appraisal, purchase price, occupancy plans, loan amount, and property eligibility can also affect the outcome. A credit score cannot compensate for every weakness elsewhere in an application, and a lower score does not necessarily mean every mortgage option is unavailable.
How to Improve Your Credit Score Before Buying a House
1. Review all three credit reports
Request reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com. Look for inaccurate late payments, accounts you do not recognize, duplicate entries, and incorrect balances. Checking your own report does not lower your score. Dispute information that is inaccurate or incomplete with the credit reporting company and, where appropriate, the company that supplied it.
2. Pay bills on time
Payment history is an important credit-scoring factor. Bring overdue accounts current when possible and make future payments by their due dates. Automatic payments or reminders can help prevent missed bills. If you are struggling, contact creditors to discuss options rather than taking on more debt to cover payments.
3. Reduce credit card balances
Credit utilization measures revolving balances relative to available limits. High utilization can weigh on scores, and paying balances down may help, although timing and results vary. Avoid draining the savings you need for a down payment, closing costs, and emergencies just to lower card balances.
4. Avoid unnecessary new credit
Several new credit applications shortly before a mortgage application can create inquiries and affect your score. New loans can also increase your DTI. Be cautious about financing a car, opening accounts, or taking on significant debt during the homebuying process.
5. Think carefully before closing old accounts
Closing an old credit card is not always beneficial because it may reduce available credit or affect other scoring factors. However, do not keep paying fees for an account you cannot afford solely to protect your score. Consider the likely consequences before making a change.
6. Allow time for changes to appear
Credit bureaus and lenders need time to receive and process updated information. No legitimate service can guarantee a specific score increase by a certain date. Be cautious of companies promising to erase accurate negative information or guarantee mortgage approval for an upfront fee.
Can You Buy a House With a Low Credit Score?
Possibly. The answer depends on the score, the mortgage program, lender standards, and the full application.
- Explore FHA financing: Under the standard policy, scores of 580 or higher qualify for the 3.5% minimum-down-payment band; scores of 500–579 require at least 10% down, but lenders may decline applications below their own cutoffs.
- Check VA eligibility: If eligible for a VA-backed loan, ask lenders about their own credit policies. The VA does not set a universal minimum score.
- Ask about USDA financing: If the home and household meet program rules, the guaranteed program has no set national score requirement, though lender standards apply.
- Request a conventional underwriting assessment: Some underwriting routes do not apply a universal minimum score, but approval depends on the risk assessment and lender requirements.
- Consider preparing longer: If your file includes recent missed payments or substantial debt, improving your financial position before buying may be safer than rushing.
A co-borrower may be an option in some circumstances, but adding another person does not automatically solve a credit problem. Their income, debts, credit profile, and legal responsibility for the mortgage must be considered. Do not choose a more expensive mortgage merely because a lender is willing to approve it. Approval does not prove the payment fits your budget.
How to Check Your Credit Score Before Applying
Start by checking your credit reports and obtaining a score from a reputable source. Some credit card issuers and financial institutions provide scores to customers. The score you see may differ from the mortgage score because scoring models and reporting agencies can vary.
Ask a mortgage lender which scoring model and credit bureaus it uses, what minimum score it requires for each program, whether it can assess lower scores or limited traditional credit, and what down payment, rate, and mortgage insurance might apply. You can compare several lenders rather than accepting the first offer.
The CFPB explains that mortgage inquiries made within a 45-day window are generally treated as a single inquiry for scoring purposes, though treatment can vary by scoring model. Read the CFPB’s guidance on mortgage rate shopping and credit.
Common Credit Score Mistakes Homebuyers Should Avoid
- Assuming 620 is universal: Requirements differ by program, underwriting system, and lender.
- Assuming a high score guarantees approval: Income, debt, savings, property eligibility, and other requirements still matter.
- Borrowing the maximum offered: The largest loan you qualify for may not be the most comfortable payment.
- Paying to remove accurate negative information: Accurate information generally cannot be legitimately removed simply because you pay a credit-repair company.
- Comparing only down payments: Interest, insurance, fees, and long-term costs can differ.
- Ignoring your credit report: A score alone does not reveal whether the underlying information is correct.
Frequently Asked Questions
What is the lowest credit score to buy a house?
There is no universal minimum. Under the standard FHA policy, scores of 500–579 require at least a 10% down payment, while scores of 580 or higher qualify for the 3.5% minimum-down-payment policy. Lenders may be stricter, and other programs have different rules.
Can I buy a house with a 580 credit score?
It may be possible. A score of 580 meets the FHA threshold for its 3.5% minimum-down-payment policy, but approval depends on lender requirements, income, debts, credit history, and other eligibility conditions.
Is 620 a good credit score for a first-time homebuyer?
A score of 620 may work for some mortgage options, but it is not a universal approval threshold. Some conventional underwriting systems do not use a universal minimum score, while particular lenders and programs may still set minimums.
Does checking my own credit score lower it?
No. Checking your own credit report or score is a soft inquiry and does not lower your score. A lender’s credit inquiry is different, and mortgage inquiries within an applicable rate-shopping period are generally grouped for scoring purposes.
How long does it take to improve a credit score before buying a house?
There is no fixed timeline. Correcting an error, lowering reported balances, and establishing consistent on-time payments may help, but timing and results depend on your credit history, reporting cycles, and scoring model.
Conclusion: Focus on Mortgage Readiness, Not Just a Number
The credit score you need to buy a house depends on the mortgage program, lender requirements, and your overall financial situation. FHA, VA, USDA, and conventional mortgages each have different eligibility rules, so a score that presents a challenge for one option may still leave another worth exploring.
Start by checking your credit reports, reviewing your budget, reducing unnecessary debt, and comparing mortgage programs. Ask lenders to explain their minimum score requirements and assess your full application before deciding whether to apply now or prepare further.
Most importantly, do not treat mortgage approval as the only measure of readiness. A sustainable monthly payment, enough money for closing costs, and a financial cushion for unexpected expenses are essential parts of buying a home responsibly. The best mortgage is one you qualify for that also fits your finances and long-term housing needs.
Official Sources and Further Reading
- Consumer Financial Protection Bureau: Owning a Home
- Fannie Mae: Desktop Underwriter Credit Risk Assessment Updates
- Freddie Mac: Fixed-Rate Mortgages
- HUD: FHA Mortgagee Letters
- U.S. Department of Veterans Affairs: Home Loan Guidance
- USDA Rural Development: Single Family Housing Guaranteed Loan Program
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