What credit score do I need to buy a house?
FHA loans allow a credit score as low as 580 with a 3.5% down payment, and conventional loans generally start in the low-to-mid 600s. But the minimum to qualify and the score that gets you good pricing are two different things — on conventional loans especially, a higher score meaningfully lowers what you pay.
Minimums by program
These are program floors. Individual lenders often set their own higher thresholds on top.
- FHA — 580 or above for the 3.5% minimum down payment. Below 580 is possible with a larger down payment.
- Conventional — generally low-to-mid 600s, with pricing improving steadily as the score rises.
- VA — no minimum set by the VA itself, though lenders apply their own standards.
- USDA — no fixed minimum from the agency, with lender standards applying.
Qualifying and pricing are different questions
Conventional pricing is highly sensitive to credit score. The same loan can cost noticeably more at 660 than at 760, through both the rate and the mortgage insurance premium.
FHA is far less sensitive. That is why a borrower in the low 600s often ends up cheaper on FHA than conventional even after accounting for FHA mortgage insurance — and why the right answer depends on running both rather than assuming.
If your score is not where you want it
Small, boring things move scores faster than most people expect: paying balances down below a third of their limits, not closing old accounts, and not opening new credit while you are shopping for a house. A single collection account resolved can matter more than months of general good behaviour.
It is worth asking before you decide to wait. Sometimes the gap between your current score and better pricing is a couple of specific actions rather than a year of patience.
Sources
We would rather you checked than took our word for it.
Related
Pre-qualification vs pre-approval: what is the difference?
A pre-qualification is an estimate based on information you state about yourself, with nothing verified.
How much house can I afford?
Lenders decide what you can borrow using your debt-to-income ratio: your total monthly debt payments, including the new mortgage, divided by your gross monthly income.