What credit score do I need to buy a house?

The credit score you need to buy a house depends on the type of home loan you’re considering. Many lenders require scores of at least 620 for conventional loans, but it’s possible to get government-backed loans like FHA loans with lower scores.

If you want to know where you stand before submitting a loan application, Credit Karma offers free VantageScore 3.0 credit scores and credit reports from two of the three main credit bureaus: Equifax and TransUnion.

Keep in mind that you have many credit scores, and each provides a slightly different snapshot of your financial health.

• What is the minimum credit score to buy a house?
• What credit score do you need for each type of home loan?
• How do your credit scores affect your mortgage rate?
• What credit score do first-time home buyers need?
• Can you buy a house with bad credit?
• What other factors do lenders consider besides your credit scores?
• What’s next: How can you improve your credit score before buying a house?
• FAQs about what credit scores you need to buy a house

What is the minimum credit score to buy a house?

You’ll need a 620 credit score for many conventional loans, but it’s possible to qualify for an FHA loan with a credit score of just 500 if you meet certain requirements.

The minimum credit score you need to buy a house varies by the type of mortgage loan you’re considering. It also depends on the lender, which may set its own requirements on top of the guidelines for the loan program.

And while credit scores are important, they aren’t the only factor that matters. Lenders also examine your income, debt, down payment and other details of your finances when they evaluate your application.

What is a good credit score?

As a rule of thumb, scores starting in the high 600s and up to the mid-700s (on a scale of 300 to 850) are typically considered “good.”

You’ll likely need a good credit score to qualify for the best mortgage rates. Generally, the lowest interest rates go to borrowers with credit scores in the mid-to-high 700s or above. Your down payment size also can affect your rate.

What scores are considered when I apply for a mortgage?

Historically, mortgage lenders used the classic FICO® score, but in 2026, Fannie Mae and Freddie Mac updated their guidelines to allow lenders to use the VantageScore 4.0 credit model and the future use of FICO® Score 10T. Both VantageScore 4.0 and FICO® Score 10T use trended data, meaning they look at how your financial picture changes over time to generate a score.

For loans that aren’t sold to Fannie Mae or Freddie Mac, lenders may use other scores. You can ask the lender which score it uses before you apply.

Lenders often review scores from the three major credit bureaus and use the middle score to evaluate your application.

What credit score do you need for each type of home loan?

Different home loans have different credit score requirements. You usually need a minimum 620 score for a conventional loan, and 500 is the minimum for an FHA loan. VA loans and USDA loans don’t specify minimum credit scores, but many lenders look for scores of at least 580 to 640.

Conventional loans

Conventional loans are home loans that aren’t part of a government mortgage program. They can be either conforming loans, meaning that they adhere to regulations from the Federal Housing Finance Agency and Fannie Mae or Freddie Mac, or they can be nonconforming loans.

In 2025, Fannie Mae dropped its minimum credit score requirement for loans approved by its automated underwriter. But it’s still common for lenders to require a 620 minimum score for conforming loans.

Credit score requirements for nonconforming loans are set by individual lenders. For jumbo loans, which are larger than the conforming loan limits set by the FHFA, lenders often require credit scores of 700 or higher.

FHA loans

FHA loans are federally insured and may be a good option for first-time homebuyers. They allow credit scores as low as 500 to 579, provided you make a down payment of at least 10%. The minimum down payment allowed for an FHA loan is 3.5%, which requires a credit score of 580 or higher.

VA loans

Eligible veterans and service members can apply for VA loans backed by the VA. The VA doesn’t set a minimum credit score, but lenders may have their own requirements. You’ll likely need a score of at least 580 to 640 to qualify.

USDA loans

The USDA backs home loans for borrowers in rural areas and some suburban areas. The USDA states that borrowers should demonstrate the ability to pay back debts, but it doesn’t require a minimum credit score. Lenders often require credit scores of at least 580 to 640.

How do your credit scores affect your mortgage rate?

Higher credit scores can help you qualify for lower interest rates. Lenders generally offer the best rates to applicants with scores in the mid-700s and above, while lower scores can mean higher interest rates and higher monthly payments.

It’s worth understanding your credit scores because small difference in rates can have a large impact on your monthly payment and total interest paid.

For example: If you buy a $400,000 home with a 5% down payment and take out a 30-year loan with a 6% interest rate, your monthly principal and interest payment would be $2,278. Your total interest would be $440,185 over the life of the loan.

But let’s say you make the same purchase with a 7% interest rate. In that case, your monthly payment would be $2,528 and you’d pay $530,133 in total interest.

What credit score do first-time homebuyers need?

First-time homebuyers often need a credit score of at least 580 to 620, though borrowers with lower scores may still qualify for an FHA loan.

Some loan programs are designed to help first-time homebuyers and have low down payment requirements. Examples include Fannie Mae’s HomeReady mortgage and Freddie Mac’s Home Possible® mortgage, which allow down payments as low as 3%. Fannie Mae and Freddie Mac don’t require minimum credit scores as long as their automated underwriters determine that an applicant’s credit is acceptable, but lenders often limit eligibility to borrowers with scores of at least 620.

First-time home buyers may also be able to get help from state and local down payment assistance programs. Some first-time homebuyer programs, such as California’s MyHome Assistance Program and New York City’s HomeFirst Down Payment Assistance Program, don’t specify minimum credit scores, though they set income limits and other eligibility requirements.

Other programs may restrict participation to borrowers with certain scores. For example, Florida’s down payment assistance programs are available only to home buyers who are borrowing through the state’s Single Family Homebuyer Loan Program, which requires a credit score of at least 640.

For first-time homebuyers with lower scores, an FHA loan may be the most straightforward path to homeownership. Borrowers can qualify with a 580 credit score if their down payment is at least 3.5%, and a credit score of 500 to 579 is acceptable with a 10% down payment.

Can you buy a house with bad credit?

Buying a house with bad credit may be possible if you qualify for an FHA loan or a nonqualified mortgage or turn to another tactics that may help you get approved.

What is a nonqualified mortgage?

In addition to FHA loans, another option is to apply for a nonqualified mortgage such as a credit event loan. These loans aren’t governed by the regulations that typically require lenders to confirm borrowers have the ability to repay the money they borrow, and they may be designed for borrowers with poor credit.

But they’re often more expensive than other loan types, and they may have features that increase the odds borrowers will default. Consider your options carefully before choosing a nonqualified mortgage.

Will a larger down payment help me get a mortgage with bad credit?

Lenders may view your application as less risky if you make a large down payment. If you put more money down, there’s less of a chance that your loan balance will be more than your home is worth.

Will adding a co-signer help me qualify for a home loan?

Another strategy to qualify for a home loan is to add a co-signer with a stronger credit profile. A co-signer is legally responsible for making payments if you don’t, and lenders may look more favorably on your application if someone is co-signing because there’s added assurance that they’ll receive payments on time. This can be a risky move though since late payments will hurt your credit and the co-signer’s credit. 

What are rent-to-own mortgages?

Some sellers offer to help you reach homeownership status while you work on your credit. Rent-to-own programs allow tenants to gradually contribute to a down payment over time using some of the rent they pay and give the option to buy the home at a later date.

These arrangements can come with upfront fees or other costs, and in some cases, they’re advertised by scammers who don’t actually own the properties they claim to. Do your research and consider seeking guidance from an attorney or certified credit counselor before agreeing to a rent-to-own plan.

What other factors do lenders consider besides your credit scores?

While credit scores provide lenders with information about your financial history, they can’t sum up everything about your finances on their own.

In addition to reviewing your credit scores, lenders look at your debt-to-income ratio, employment history, income and cash reserves. You may be able to compensate for a lower credit score if these other areas show evidence of financial stability.

• Debt-to-income ratio — This measure shows your monthly debt obligations as a percentage of your monthly income. The lower your DTI, the more room you may have in your budget for a mortgage payment. Lenders generally look for a ratio of 36% or lower.
• Employment history — Lenders want to see a record of steady employment over time to be confident that you won’t lose your income source.
• Down payment size — A larger down payment means you start out with more equity in the home, and lenders may view your loan as a safer bet.
• Cash reserves — Having money on hand that you could use to make your mortgage payment signals to lenders that you have a buffer in case of emergencies.

What’s next: How can you improve your credit score before buying a house?

If homeownership seems out of reach because of your credit history, it may make sense to spend some time improving your credit before buying a home. These credit score factors are important to consider.

• Pay your bills on time — This is the most significant factor for your credit scores.
• Lower your credit utilization — Experts recommend keeping this rate under 30%.
• Dispute errors — If you see mistakes on your credit reports, submitting a dispute with the credit bureaus can be one of the quickest ways to improve your scores.
• Keep old accounts open — This helps maintain the depth of your credit history and shows you can manage credit over time.
• Avoid multiple inquiries — Only apply for credit when you truly need it. Many credit inquiries in a short period of time can lower your scores and indicate financial stress to lenders.

Check your credit reports and credit scores regularly to track your progress. Credit Karma offers free credit monitoring as well as free access to VantageScore 3.0 scores from Equifax and TransUnion.