What Credit Score Do You Need to Buy a House? (2026 Guide)

The minimum credit score to buy a house depends on your loan type: 500 for FHA loans (with 10% down), 620 for conventional mortgages, and 700+ for jumbo loans. However, your credit score doesn't just determine whether you qualify—it directly impacts your interest rate and how much you'll pay over the life of your loan. A borrower with a 780 score could save over $56,000 compared to someone with a 620 score on a $350,000 mortgage. This guide breaks down the exact credit score requirements for each loan type, shows you how scores affect rates, and provides actionable strategies to improve your credit before applying for a mortgage.

What Credit Score Do You Need to Buy a House in 2026?

The credit score you need to buy a house ranges from 500 to 720+, depending on the type of mortgage you're pursuing. While the minimum requirements might surprise you—yes, you can technically qualify with a 500 score—the reality is that your score determines far more than just approval or denial.

Your credit score influences:

• Whether you qualify for specific loan programs
• Your interest rate (potentially varying by nearly 1%)
• Your down payment requirements
• Private mortgage insurance (PMI) costs
• Your monthly payment amount

If you're a first-time homebuyer, understanding these requirements is essential before you start house hunting. Let's break down exactly what each loan type requires.

Minimum Credit Scores by Loan Type

Different mortgage programs have different credit score requirements. Here's what you need to know about each option:

FHA Loans: The Most Accessible Option

FHA loans, insured by the Federal Housing Administration, offer the lowest credit score requirements in the market. With a score of just 500, you can qualify—though you'll need a 10% down payment. At 580 or above, your down payment drops to just 3.5%.

For a complete breakdown of eligibility requirements and program benefits, check out our FHA loan guide.

Conventional Loans: The Standard Choice

Conventional loans conform to standards set by Fannie Mae and Freddie Mac. While the technical minimum is 620, many lenders impose "overlays" requiring 660 or higher. These loans offer more flexibility with terms and don't require lifetime mortgage insurance.

If your credit is above 620 but below the ideal range, setting specific credit score goals can help you map out the path to better rates.

VA Loans: No Official Minimum

The Department of Veterans Affairs doesn't set a minimum credit score for VA loans. However, individual lenders typically require 620 or higher. The major benefit? Zero down payment required for eligible service members, veterans, and surviving spouses.

USDA Loans: Rural Home Financing

USDA loans offer zero-down financing for homes in eligible rural and suburban areas. While there's no official USDA minimum, lenders generally require scores between 580 and 640. Income limits also apply.

Jumbo Loans: Higher Standards Required

Jumbo loans exceed conforming loan limits (currently $766,550 in most areas for 2026) and therefore carry more risk for lenders. Expect to need a 700-720+ credit score, larger down payment, and substantial cash reserves.

How Your Credit Score Affects Mortgage Interest Rates

Here's where your credit score really matters: the interest rate you'll pay. Even small differences in your rate translate to thousands of dollars over the life of your loan.

Based on data from Curinos LLC via Experian (January 2025), here's what borrowers can expect on a 30-year conventional mortgage for a $350,000 loan:

The bottom line: A borrower with a 620 score pays $157 more per month than someone with a 780 score. Over 30 years, that's $56,520 in extra interest costs.

Even if you can't reach the 780+ tier, incremental improvements pay off. Moving from 660 to 700 saves approximately $37 per month, or $13,282 over the loan's life.

If your credit score limits your rate options, you might consider buying mortgage points to reduce your interest rate at closing.

Beyond Credit Score: What Else Lenders Look At

Your credit score opens the door, but lenders evaluate several other factors before approving your mortgage.

Debt-to-Income Ratio (DTI)

Your DTI compares your total monthly debt payments to your gross monthly income. Most lenders cap DTI at 43%, though some programs allow up to 50%.

What counts toward DTI:

• Proposed mortgage payment (including taxes and insurance)
• Car loans and leases
• Student loans
• Credit card minimum payments
• Child support and alimony
• Other installment loans

Example: If you earn $7,000/month gross and have $2,100 in monthly debt payments (including your proposed mortgage), your DTI is 30%.

If your DTI is too high, debt consolidation can help lower your monthly obligations and improve your approval odds.

Down Payment

While some programs offer zero or low down payments, putting more money down provides several benefits:

• Reduces loan amount (lower monthly payment)
• Shows lender commitment (lower perceived risk)
• Eliminates PMI at 20% down on conventional loans
• Can offset lower credit scores (compensating factor)

Cash Reserves

Lenders want to see you have money left after closing. Typically, they require 2-6 months of mortgage payments in savings. This demonstrates you can handle emergencies without defaulting.

Employment History

A stable employment history—typically two years with the same employer or in the same field—reassures lenders about income reliability. Self-employed borrowers face additional documentation requirements, including two years of tax returns.

Credit History Red Flags

Certain events trigger waiting periods before you can qualify:

• Foreclosure: 7 years on credit report; 3-7 year waiting period depending on loan type
• Bankruptcy (Chapter 7): 4 years for conventional, 2 years for FHA
• Bankruptcy (Chapter 13): 2 years with good payment history
• Short sale: 4-7 years waiting period

How Long Does It Take to Improve Your Credit?

If your credit score isn't where you need it to be, here's a realistic timeline for improvement:

Quick Wins (1-3 Months)

Pay down credit card balances. Credit utilization (how much of your available credit you're using) accounts for 30% of your FICO score. Dropping utilization from 50% to under 10% can boost your score significantly within one billing cycle.

Dispute credit report errors. According to the Consumer Financial Protection Bureau, one in five consumers has an error on at least one credit report. Errors can be disputed online with each bureau (Equifax, Experian, TransUnion).

Become an authorized user. If a family member with excellent credit adds you to their card, their positive history can boost your score. Just ensure the card has a low balance and long history.

Set up automatic payments. Payment history is 35% of your score—the biggest factor. Never miss a due date again.

Medium-Term Strategy (3-6 Months)

Avoid new credit applications. Each hard inquiry can lower your score by 5-10 points. The only exception: mortgage shopping within a 14-45 day window counts as a single inquiry.

Don't close old accounts. Closing cards reduces your available credit (increasing utilization) and shortens your average account age. Keep them open, even if unused.

Pay off collections. If you have accounts in collections, negotiate a "pay for delete" agreement where the creditor removes the account from your report in exchange for payment.

Long-Term Strategy (6-12 Months)

Build consistent payment history. On-time payments compound over time, with recent history weighted more heavily.

Diversify your credit mix. Having both revolving credit (credit cards) and installment loans (car loans, personal loans) demonstrates you can manage different types of debt.

Request credit limit increases. Higher limits improve your utilization ratio without requiring you to pay down balances. Request increases every 6-12 months on cards in good standing.

Strategies for Buying with a Borderline Credit Score

If your score falls just below a key threshold, don't give up. Here's how to approach homebuying at different score levels:

Score 500-579: FHA is Your Friend

Your best option is an FHA loan with 10% down. While this requires more cash upfront, it's the only path to homeownership at this score level. Focus intensely on:

• Paying down credit card balances
• Disputing any errors
• Waiting 3-6 months if you're close to 580

Score 580-619: The FHA Sweet Spot

You qualify for FHA's 3.5% down payment option. This is often the most practical path forward, but consider:

• Working toward 620 for conventional loan access
• The long-term cost of FHA's lifetime mortgage insurance
• Whether 3-6 more months of credit building is worth waiting

Score 620-659: Options Open Up

You now have access to conventional, FHA, VA (if eligible), and USDA (if location qualifies) loans. Strategy at this level:

• Compare rates between FHA and conventional carefully
• A few months of improvement could save thousands
• Consider a larger down payment to offset credit concerns

Score 660-699: Push for 700

All loan types are available, and you're close to a significant rate improvement threshold. The jump from 660 to 700 can save ~$37/month on a $350K mortgage. Strategies:

• Pay down credit cards aggressively
• Avoid any new credit applications
• Consider a rapid rescore if you're close and on a timeline

General Strategies for All Borderline Buyers

Make a larger down payment. More skin in the game reduces lender risk and can offset credit concerns.

Get pre-approved early. Know exactly where you stand before falling in love with a house you can't finance.

Shop multiple lenders. Rates and requirements vary significantly. Get quotes from at least 3-5 lenders, including banks, credit unions, and mortgage brokers.

Consider FHA now, refinance later. Get into the home with an FHA loan, then refinance to a conventional loan once your credit improves and you have 20% equity—eliminating the lifetime mortgage insurance.

Find a co-signer. A family member with strong credit can help you qualify, though they're equally responsible for the debt if you default.

Common Credit Score Myths About Home Buying

Misinformation about credit scores runs rampant. Here's the truth about common myths:

Myth: You Need a 700+ Score to Buy a House

Reality: FHA loans accept scores as low as 500 with 10% down, or 580 with 3.5% down. Conventional loans start at 620. While a 700+ score gets you better rates, it's not required for homeownership.

Myth: Checking Your Credit Hurts Your Score

Reality: Checking your own credit is a "soft inquiry" with zero impact on your score. Only "hard inquiries" from lenders affect your score, and mortgage shopping within a 14-45 day window counts as just one inquiry per Experian.

Myth: Close Unused Credit Cards Before Applying

Reality: Closing cards hurts your score by increasing your utilization ratio and decreasing your average account age. Keep old cards open, even if you don't use them.

Myth: Paying Off All Debt Maximizes Your Score

Reality: Having 1-10% credit utilization often scores better than 0%. Lenders want to see you can manage debt responsibly, not that you avoid it entirely.

Myth: A Higher Income Means You Don't Need Good Credit

Reality: Income doesn't directly affect your credit score. High earners with poor credit face the same challenges—higher rates or denial—as anyone else.

Myth: All Lenders Use the Same Credit Score

Reality: Mortgage lenders typically use FICO Score 2, 4, or 5, while free apps show FICO 8 or VantageScore. Your mortgage score may differ by 20+ points from what you see online.

Should You Wait to Improve Your Credit?

This is one of the most common questions buyers face, and the answer depends on your specific situation.

Consider Waiting If:

• You're within 20-40 points of a significant threshold (580, 620, 700, 740)
• You have clear, actionable steps that can boost your score quickly
• Home prices in your market are stable or declining
• Interest rates are expected to remain steady or decrease
• You haven't saved enough for closing costs and reserves

Consider Buying Now If:

• Your credit is improving but slowly (you've addressed major issues)
• Home prices in your market are rising faster than you can improve your score
• Interest rates are expected to increase
• You've found the right property at the right price
• The difference between your current rate and an improved rate is minimal
• Renting costs more than buying at your current rate

The math: If improving from 660 to 700 takes six months and saves you $37/month, you'd need 6+ months of savings to offset six months of delayed ownership. Meanwhile, if home prices rise 5% on a $350,000 home, you've lost $17,500 in equity—far more than the interest savings.

For help mapping out your target scores and timeline, see our credit score goals guide.

Getting Started: Your Next Steps

Ready to move forward? Here's your action plan:

1. Check your credit reports from all three bureaus at AnnualCreditReport.com
2. Dispute any errors you find immediately
3. Get pre-approved with 3-5 lenders to understand your options
4. Set a target score based on your timeline and desired loan type
5. Create a debt paydown plan focusing on credit card utilization
6. Build reserves for down payment, closing costs, and emergency funds
7. Avoid new credit until after your mortgage closes

Your credit score is a snapshot of your financial health, but it's also something you can improve with focus and time. Whether you're ready to buy now or need a few months to strengthen your profile, understanding these requirements puts you in control of your homebuying journey.