Finance & Loan · Guide
Minimum Credit Score to Buy a House
You can buy with a lower score than many people think. But the score you bring changes the rate you pay for decades.
Want the answer for your own numbers? Use the free Mortgage Calculator — it does every step below for you.
Minimum credit scores by loan type
| Loan type | Typical minimum score | Minimum down payment |
|---|---|---|
| FHA | 580 (500–579 with 10% down) | 3.5% at 580+ |
| Conventional | Around 620 at most lenders | 3% for some first-time buyers, otherwise 5% |
| VA (eligible veterans and service members) | No VA minimum; lenders often ask 580–620 | 0% |
| USDA (eligible rural areas) | No fixed minimum; 640 for automated approval | 0% |
| Jumbo | Often 700 or higher | Often 10–20% |
These are the floors set by the programs. Individual lenders can — and often do — ask for more. Shopping several lenders can make a real difference.
Why a higher score still matters
Meeting the minimum gets you approved. A higher score gets you a lower rate. As an illustration, suppose a 620 score is offered 7.25% and a 760 score is offered 6.5% on a $300,000, 30-year loan:
Same loan, different scores
At 6.5%: $1,896 a month. At 7.25%: $2,047 a month.
Difference: about $151 a month, or $54,000 over 30 years
On conventional loans, a lower score also raises the cost of PMI if you put down less than 20%.
What every quarter point costs
Lenders often price loans in steps of 0.25%. Here is what each step adds on a $300,000, 30-year loan:
| Rate | Monthly payment | Extra a month | Extra over 30 years |
|---|---|---|---|
| 6.50% | $1,896 | — | — |
| 6.75% | $1,946 | $50 | $17,900 |
| 7.00% | $1,996 | $100 | $35,900 |
| 7.25% | $2,047 | $150 | $54,100 |
| 7.50% | $2,098 | $201 | $72,500 |
| 7.75% | $2,149 | $253 | $91,100 |
Each quarter point costs about $50 a month and roughly $18,000 over the life of the loan. That is why a few months spent improving your score before you apply can pay off for decades.
Down payment for a $400k house
| Down payment | Amount on $400,000 | Typical loan type |
|---|---|---|
| 0% | $0 | VA, USDA |
| 3% | $12,000 | Conventional (first-time buyer programs) |
| 3.5% | $14,000 | FHA |
| 5% | $20,000 | Conventional |
| 10% | $40,000 | Conventional, FHA with a 500–579 score |
| 20% | $80,000 | Conventional with no PMI |
Remember closing costs too — often 2% to 5% of the price.
Credit score ranges
FICO scores run from 300 to 850. FICO groups them like this:
| Score | Range | What it usually means for a mortgage |
|---|---|---|
| 800–850 | Exceptional | The best rates on offer |
| 740–799 | Very good | Close to the best rates |
| 670–739 | Good | Approved easily; rate rises a little |
| 580–669 | Fair | FHA likely; conventional possible from about 620 |
| 300–579 | Poor | FHA with 10% down at some lenders |
Which score do mortgage lenders use?
Most mortgage lenders pull your score from all three credit bureaus — Equifax, Experian and TransUnion — and use the middle one. If you apply with a partner, lenders commonly take each person’s middle score and use the lower of the two. So one weak report can affect a joint application.
Lenders look at more than your score
- Debt-to-income ratio. Usually 36% to 43% or less — see how much income you need.
- Steady income. Lenders often want two years of history in the same line of work.
- Down payment. More down can offset a lower score.
- Cash reserves. Savings left over after closing reassure the lender.
How to raise your score before you apply
- Pay every bill on time. Payment history is the biggest factor.
- Lower your credit card balances. Using under 30% of your limits helps; under 10% helps more.
- Check your reports for errors at the three bureaus, free, and dispute mistakes.
- Avoid new credit in the months before applying.
- Keep old accounts open to protect the age of your credit.
Once you know your likely rate, test payments in the mortgage calculator and check the income you need.
How fast can a score improve?
- Paying down card balances shows up when the card company next reports, often within a month or two.
- Fixing errors: the bureaus generally have 30 days to investigate a dispute.
- Late payments stay on your report for up to seven years, but their effect fades as they age.
Pull your free reports first. Then fix errors and lower balances — those two moves work fastest.
Frequently asked questions
FHA loans allow scores as low as 500 with 10% down, or 580 with 3.5% down. Most conventional lenders look for about 620. VA and USDA have no fixed program minimum, but lenders set their own, often 580 to 640.
From $0 with a VA or USDA loan, to $14,000 (3.5%) with FHA, $12,000 to $20,000 with many conventional loans, or $80,000 to avoid PMI with 20% down.
It is possible but hard. FHA rules allow scores from 500 to 579 with at least 10% down, yet many lenders set their own higher minimums. Expect to shop around, and expect a higher rate than a borrower with a stronger score.
Most pull your scores from Equifax, Experian and TransUnion and use the middle one. On a joint application, lenders commonly use the lower of the two borrowers’ middle scores.
Sources and further reading
- HUD — FHA loans — FHA credit score and down payment rules
- CFPB — Buying a house — loan types and shopping for a mortgage
- myFICO — What’s in my FICO Scores? — the five factors and how much each one weighs
- AnnualCreditReport.com — the official free source of your reports from all three US bureaus