What Credit Score Do You Need to Buy a House and Get the Best Mortgage Rates
Your credit score can shape the mortgage you qualify for, the rate you receive, and how much cash you need at closing.
A higher score does not guarantee approval. Lenders also review income, debt, savings, employment, and the property. But credit is one of the first filters. Know the score range you need before you apply.
This article is for general information only. Mortgage rules and rates change, and lenders can set stricter standards than program minimums.
Minimum credit score requirements by mortgage type
Different mortgage programs use different credit score guidelines. The numbers below are common minimums, not a promise of approval.
Mortgage type | Common minimum credit score | What to know |
Conventional loan | 620 | Often used by buyers with steady income and stronger credit. Better scores can help with lower rates and lower private mortgage insurance. |
FHA loan | 580 | A 580 score may allow a 3.5% down payment. Scores from 500 to 579 may require 10% down, but many lenders will not go that low. |
VA loan | No official VA minimum | The VA does not set one fixed score, but many lenders prefer around 620 or higher. Available to eligible service members, veterans, and some surviving spouses. |
USDA loan | No fixed program minimum | Many lenders look for about 640, especially for automated approval. Income and location rules apply. |
Jumbo loan | Often 700 or higher | These loans exceed conforming loan limits. Lenders usually require stronger credit, more cash reserves, and lower debt levels. |
A lender may use the middle score from the three major credit bureaus. If two people apply together, the lender often focuses on the lower middle score. That can affect approval and pricing.
How credit scores affect mortgage rates and terms
Credit scores help lenders estimate risk. A lower score signals a higher chance of missed payments. To offset that risk, lenders may charge more.
Your score can affect:
Interest rate
Higher scores often qualify for lower rates. Even a small rate difference can change the monthly payment and total interest paid over the loan term.
Loan fees
Some conventional loans include pricing adjustments tied to credit score, down payment, and loan type.
Mortgage insurance
Conventional loans with less than 20% down usually require private mortgage insurance. A higher credit score can lower that cost.
Down payment options
Some programs allow lower down payments, but better credit can give you more choices.
Approval flexibility
Strong credit can help when another part of the file is weaker, such as a higher debt-to-income ratio. It will not erase major risks, but it can help.
Here is a simple example. Two buyers apply for the same loan size. One has a score near 760. The other has a score near 640. The 760 borrower may receive a lower rate and lower monthly payment. The 640 borrower may still qualify, but the loan may cost more.
What score gets the best mortgage rates
Many lenders reserve their best pricing for borrowers with scores in the mid-700s or higher. A score of 740 or above often puts a borrower in a strong position for conventional loan pricing.
That does not mean a score below 740 blocks you from buying. Plenty of buyers qualify with scores in the 600s. FHA loans, VA loans, and USDA loans can help buyers who do not fit conventional loan standards.
Still, if there is time before applying, raising a score can pay off. Even moving from one pricing tier to the next may reduce the rate or fees.
How to improve your credit score before applying
Start at least three to six months before you want a mortgage. More time is better if there are errors, collections, or high balances.
Use these steps first:
Pay every bill on time
Payment history carries major weight. Set reminders or automatic payments for at least the minimum due.
Lower credit card balances
High balances can hurt scores, even when payments are on time. Aim to use less of each card’s limit. Paying down revolving debt can help faster than paying down many installment loans.
Do not open new credit before applying
New credit can create hard inquiries and lower the average age of accounts. Wait on new cards, store financing, and auto loans if a mortgage is close.
Check your credit reports
Review reports from all three major bureaus. Look for wrong balances, accounts that are not yours, outdated negative items, and duplicate collections.
Dispute clear errors
If a report is wrong, file a dispute with the bureau reporting the error. Keep records of what you send.
Keep old accounts open
Closing a card can reduce available credit and raise utilization. If the account has no fee and is in good standing, keeping it open may help.
Avoid large unexplained deposits
This does not directly change your score, but it can complicate underwriting. Lenders need to document assets and funds for closing.
If your score is low because of limited credit history, ask a lender what paths are realistic. Some programs allow alternative documentation, but not all lenders offer it.
When to talk to a lender
Talk to a lender before you assume you are not ready. A soft credit review or early prequalification can show where you stand. Ask what score the lender uses for each loan type and what changes would make the biggest difference.
If you want help preparing for the buying process, get in touch here before you start making offers.
FAQ
Can I buy a house with a 580 credit score?
Yes, an FHA loan may allow a 580 score with 3.5% down. The lender can still require a higher score. Income, debt, savings, and payment history also matter.
Is 620 a good credit score to buy a house?
A 620 score may meet the minimum for many conventional loans. It may not get the best rate. Compare FHA, VA, USDA, and conventional options if you qualify.
How fast can I raise my credit score before a mortgage?
Some changes can show within one or two billing cycles, especially lower credit card balances. Errors, late payments, and collections can take longer to address.
Does checking my own credit hurt my score?
No. Checking your own credit is a soft inquiry. Mortgage applications can create hard inquiries, but credit scoring models often treat mortgage shopping within a short window as one inquiry.
Should I pay off all debt before buying a house?
Not always. Paying down high-interest credit cards can help. Paying off every debt may reduce cash needed for the down payment, closing costs, and reserves. Ask a lender to compare both choices.
The main takeaway
You may be able to buy a house with a score in the high 500s or low 600s, depending on the loan program. For the best mortgage rates, aim for the mid-700s or higher.
Before applying, pay on time, lower card balances, check reports for errors, and avoid new debt. A stronger credit profile can give you more loan options and lower long-term costs.
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