What Credit Score Do You Need to Buy a House?
Last updated 04/17/2026 by
Andrew Latham
Edited by
Ante Mazalin
Summary:
The credit score you need to buy a house depends on the loan type — conventional loans require 620, FHA loans require 580, and VA and USDA loans have no official minimum, though most lenders require 580–640.
Your score also determines your mortgage rate, which affects your total cost far more than most buyers realize.
- Conventional loan: 620 minimum; 740+ unlocks the best rates and lowest PMI pricing.
- FHA loan: 580 for 3.5% down; 500–579 for 10% down — but most lenders require 620+ in practice.
- VA loan: No official minimum — the VA doesn’t set one; most lenders require 580–620.
- USDA loan: No official minimum; most lenders require 640 for streamlined approval.
Most buyers focus on saving a down payment and finding the right home. Credit score preparation — which directly determines both your eligibility and your rate — often gets less attention than it deserves.
Here’s what each loan type actually requires, what those requirements mean in real dollar terms, and how to get your credit ready before you start house hunting.
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Credit score requirements by mortgage type
Each loan program has its own floor — and its own tradeoffs between accessibility and cost.
| Loan Type | Official Minimum Score | Practical Lender Minimum | Min. Down Payment | Mortgage Insurance |
|---|---|---|---|---|
| Conventional | 620 | 620–640 | 3% | PMI below 20% down; cancels at 80% LTV |
| FHA | 500 (10% down) / 580 (3.5% down) | 620 at most lenders | 3.5% | MIP for life of loan (if <10% down) |
| VA | None | 580–620 | 0% | None (funding fee applies) |
| USDA | None | 640 | 0% | Annual fee (cheaper than FHA MIP) |
The mortgage insurance column matters as much as the credit threshold. FHA’s MIP stays for the life of most loans — borrowers above 620 with at least 5% down often save money over time with a conventional loan and PMI that cancels.
The 20% down payment assumption built into most affordability calculations doesn’t reflect how buyers actually buy. According to SuperMoney’s housing affordability study, 73% of buyers put down less than 20% — with first-time buyers averaging 9% and repeat buyers averaging 23%. On the typical U.S. home ($360,727), a 20% down payment requires $72,145 in savings. In California, where the typical home sits at $787,508, that figure climbs to nearly $157,500.
This is why low-down-payment programs — FHA at 3.5%, VA and USDA at 0% — matter so much more than the headline HAI affordability metrics suggest.
Conventional loans — credit score and rate tiers
Conventional mortgages backed by Fannie Mae and Freddie Mac set the baseline at 620, but the rate you receive moves significantly based on where your score falls within the eligible range.
| Credit Score | Rate Impact vs. 760+ Baseline | PMI Rate (5% down, approximate) |
|---|---|---|
| 760+ | Baseline (best rate) | ~0.46% annually |
| 740–759 | +0.125% | ~0.46% |
| 720–739 | +0.25% | ~0.57% |
| 700–719 | +0.50% | ~0.69% |
| 680–699 | +0.75% | ~0.78% |
| 660–679 | +1.00% | ~1.06% |
| 640–659 | +1.50% | ~1.30% |
| 620–639 | +2.00%+ | ~1.52% |
On a $350,000 loan, a 2% rate difference between a 620 and 760 score adds approximately $140,000 in total interest over a 30-year term. That’s a $389/month payment difference for the life of the loan.
See the full breakdown of conventional loan requirements for DTI limits, reserve requirements, and property eligibility rules.
FHA loans — the accessible option with a long-term cost
FHA loans are the most common path for buyers with scores between 580 and 660. The lower credit floor and 3.5% minimum down payment create access that conventional programs don’t match at this level.
The tradeoff is mandatory mortgage insurance that doesn’t cancel. For most FHA borrowers putting 3.5% down, the annual MIP — currently 0.55% on a 30-year loan — stays for the life of the loan. Over 30 years on a $300,000 mortgage, that’s approximately $49,500 in insurance premiums on top of interest.
See the complete credit score tiers, lender overlay landscape, and eligibility rules in our guide on what credit score you need for an FHA loan.
VA loans — best terms for eligible veterans
VA loans offer the most favorable terms of any mortgage program — no down payment, no PMI, and competitive rates — for veterans, active-duty service members, and eligible surviving spouses.
The VA loan program sets no official minimum credit score. Individual lenders impose their own minimums, typically 580–620. Because there’s no PMI and no down payment requirement, VA loans are almost always the best option for eligible borrowers regardless of their score, as long as they meet the VA eligibility requirements — which include service length, discharge status, and a Certificate of Eligibility (COE).
A VA funding fee (1.25%–3.3% of the loan amount, depending on down payment and first-time vs. subsequent use) replaces the insurance premium. It can be rolled into the loan and is waived entirely for veterans with a service-connected disability rating.
Pro Tip: If you’re eligible for a VA loan, use it — even if you have a score above 740. The combination of no down payment, no PMI, and competitive rates produces a lower monthly payment and total cost than almost any conventional product, even when accounting for the funding fee.
USDA loans — zero down for rural buyers
The USDA loan program offers 100% financing with no down payment for properties in eligible rural and suburban areas. Like VA, the USDA sets no official credit minimum — but lenders typically require 640 for the automated underwriting system to approve the application without manual review.
Below 640, USDA loans require manual underwriting — a more involved process where an underwriter reviews the full file by hand. Approval is possible below 640 but requires strong compensating factors: low DTI, significant cash reserves, and a clean recent payment history.
Income limits apply — USDA loans are restricted to households earning no more than 115% of the area median income. Full eligibility criteria are detailed in the USDA loan requirements guide.
How your credit score affects your mortgage rate in dollars
Rate differences between credit tiers translate directly into monthly payment and total lifetime cost. The table below shows the real cost of a 30-year, $350,000 conventional mortgage at different score-driven rates.
| Credit Score Range | Approximate Rate | Monthly Payment | Total Interest (30 yr) |
|---|---|---|---|
| 760+ | 6.75% | $2,270 | $467,200 |
| 720–759 | 7.00% | $2,329 | $488,440 |
| 680–719 | 7.25%–7.50% | $2,389–$2,447 | $510,040–$530,920 |
| 640–679 | 7.75%–8.25% | $2,507–$2,626 | $552,520–$595,360 |
| 620–639 | 8.50%+ | $2,691+ | $619,760+ |
A buyer with a 625 score buying the same $350,000 home as a buyer with a 765 score can pay $150,000–$175,000 more in total interest over 30 years. That’s a second car, a college education, or a decade of retirement contributions.
Where you buy adds another dimension. SuperMoney’s housing affordability data shows the Midwest remains most accessible — median home price $273,900, Housing Affordability Index 143.9 — while the West is the least affordable market in the country, with a median of $585,200 and a qualifying income ($145,296) that exceeds the region’s actual median family income ($109,662). In markets like California, even a strong credit score doesn’t solve an affordability gap driven by income-to-price mismatch.
How to prepare your credit score before buying a house
Credit preparation for a mortgage is different from credit preparation for a credit card — the stakes are higher and the timeline is longer. Start at least six months before you plan to apply.
- Pull all three bureau reports and dispute errors. Mortgage lenders use the middle score of three bureau pulls. An error on one bureau — a misreported late payment, a duplicate collection — can drag your middle score below a tier threshold. Dispute any inaccuracies at AnnualCreditReport.com immediately. The resolution process takes 30–45 days.
- Get every revolving balance below 10% utilization. For mortgage applications specifically, aim for under 10% — not just under 30%. Moving from 30% to 10% utilization can add 20–40 points to your score and push you into a meaningfully better rate tier.
- Don’t open or close any accounts in the six months before applying. New accounts lower your average account age. Closing accounts reduces available credit and raises your utilization ratio. Both hurt your score at the worst possible time.
- Get pre-approved — not just pre-qualified. A pre-approval involves a hard pull and a full credit review, giving you an accurate rate estimate. A pre-qualification is a soft estimate only. Sellers and agents treat pre-approvals as serious; pre-qualifications less so. Get multiple pre-approvals within a 45-day window — they count as one inquiry.
- Don’t finance anything large before closing. A new car loan, furniture financing, or even a new credit card application between pre-approval and closing can change your DTI and credit profile enough to delay or derail the loan. Wait until after closing for any major new financing.
Frequently asked questions
What credit score do you need to buy a house in 2025?
The minimum depends on the loan type. Conventional loans require 620. FHA loans require 580 for 3.5% down (500 for 10% down, though few lenders go that low). VA and USDA loans have no official minimum — most lenders require 580–640 for these programs. For the best mortgage rates on any loan type, 740 or above is the threshold that unlocks the most favorable pricing.
Can you buy a house with a 580 credit score?
Yes, through FHA and potentially VA or USDA loans depending on eligibility. A conventional mortgage at 580 is possible but very difficult — few lenders go below 620. At 580, an FHA loan with 3.5% down is the most accessible path to homeownership, but the mandatory mortgage insurance premium stays for the life of the loan and adds significantly to total cost.
How much does your credit score affect your mortgage payment?
Substantially. On a $350,000 30-year mortgage, the difference between a 620 and 760 score can mean a payment $400+ higher per month and $150,000+ more in total interest. The biggest single step most buyers can take to reduce the cost of homeownership is improving their credit score before applying — not negotiating a lower purchase price.
What is the most common reason mortgages are rejected?
High debt-to-income ratio is the leading cause of mortgage rejection, ahead of low credit score and insufficient down payment. Thin or no credit history is the second most common disqualifier — millions of consumers are technically capable of affording a mortgage payment but can’t access one because they lack the credit file required for approval. Self-employed and freelance applicants face additional scrutiny, as lenders average two years of tax returns and irregular income patterns can produce a qualifying income significantly below actual earnings.
Should first-time buyers use FHA or conventional?
It depends on your score and how long you plan to stay in the home. FHA is typically better for scores below 660 — the lower threshold and flexible DTI outweigh the permanent MIP at this range. Above 660, conventional becomes competitive, especially if you can put 5–10% down and have PMI cancel within a few years. The first-time home buyer guide walks through this decision with specific scenarios.
Do VA loans require a credit score?
The VA itself sets no minimum credit score — lenders set their own overlays, typically 580–620. VA loans are uniquely beneficial because they require no down payment, no PMI, and offer competitive rates even for borrowers with lower scores. Eligibility is the primary gate — you must meet VA service requirements and obtain a Certificate of Eligibility before lender credit requirements apply.
Key takeaways
- Conventional loans require 620; FHA requires 580 (3.5% down); VA and USDA have no official minimum but most lenders require 580–640.
- The score difference between 620 and 760 on a $350,000 conventional loan can cost $150,000–$175,000 in additional interest over 30 years.
- FHA mortgage insurance lasts for the life of most loans — borrowers above 660 with modest down payments often save money with conventional + PMI that cancels.
- VA loans are the best available terms for eligible veterans — no down payment, no PMI, and competitive rates regardless of score.
- USDA loans offer 100% financing for eligible rural properties — a 640 score triggers automated underwriting; below that requires manual review.
- Get every revolving balance below 10% utilization before applying — not 30% — to maximize your rate-tier positioning specifically for mortgage applications.
- Don’t open or close accounts, or finance any major purchase, in the six months before or during your mortgage application process.
Ready to compare mortgage lenders and current rates for your credit profile? See options at SuperMoney’s home loan comparison.
Andrew is the Content Director for SuperMoney, a Certified Financial Planner®, and a Certified Personal Finance Counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.
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