Most lenders want a credit score of 620 or higher, but the real number depends on the loan type and your down payment

There is no single credit score requirement for buying a house. Conventional loans (the most common type) typically require a score of 620 at minimum, but many lenders prefer 640 or higher to offer better interest rates. FHA loans, backed by the Federal Housing Administration, allow scores as low as 500 with a 10 percent down payment, or 580 with a 3.5 percent down payment. VA loans and USDA loans have their own thresholds, which vary by lender. The score that matters is the one the lender pulls on the day you apply — not the score you checked online last month.

Your credit score is one piece of the lending decision, not the whole picture. A lender also looks at your debt-to-income ratio (how much you owe compared to what you earn), your employment history, your down payment size, and whether you have missed payments recently. A score of 640 with a 20 percent down payment and steady income will move faster than a score of 700 with no savings and a job change last month. The interest rate you receive, however, does depend heavily on your score — a 40-point difference can cost you tens of thousands of dollars over the life of the loan.

Key Takeaways

  • Conventional loans typically require a minimum score of 620, though 640 or higher gets better rates and faster approval.
  • FHA loans allow scores as low as 500 with a 10 percent down payment, making them an option when your score is lower.
  • Your actual credit score is pulled by the lender during the application process, not calculated from online tools or credit monitoring services.
  • The interest rate you receive depends on your score — a lower score means you pay more per month and more total interest over 30 years.
  • Lenders also consider your down payment, debt-to-income ratio, and recent payment history alongside your credit score.

How lenders calculate the credit score they use

The credit score a mortgage lender sees is not the same as the score you see on a credit monitoring app. Lenders use mortgage-specific credit scores, which weight different factors differently than the consumer scores you can check for free. A mortgage lender typically pulls your score from one or more of the three major credit bureaus — Equifax, Experian, and TransUnion — and uses a scoring model designed for mortgage lending, such as the FICO Score 2, 5, or 9.

The lender pulls your score during the pre-qualification stage (an estimate of how much you might borrow) and again during the formal application. If your score drops between those two pulls — because you opened a new credit card, missed a payment, or had a collections account reported — the lender may change their offer or ask for more information. Lenders also pull your score from all three bureaus and typically use the middle score of the three, not the highest or lowest.

Minimum scores for different loan types

Conventional loans are mortgages not backed by a government agency. Most conventional lenders require a minimum score of 620, but many set their floor at 640 or 660. If your score is below 620, most conventional lenders will decline your application. If your score is between 620 and 660, you may face a higher interest rate, a requirement to put down more money, or both. Scores above 740 typically receive the best rates.

FHA loans are backed by the Federal Housing Administration and are designed for borrowers with lower scores or smaller down payments. The FHA itself does not set a minimum score — it is up to individual lenders. Most FHA lenders require a score of 580 to offer the 3.5 percent down payment program. Some lenders will go as low as 500 if you put down 10 percent. FHA loans also allow higher debt-to-income ratios than conventional loans, which can help if your score is low but your income is stable.

VA loans are for military members, veterans, and surviving spouses. The VA does not set a minimum credit score, but most VA lenders require 580 or higher. Some lenders will work with scores in the 500s if you have strong income and a small debt-to-income ratio. VA loans do not require a down payment and typically offer lower interest rates than conventional or FHA loans.

USDA loans are for rural and some suburban properties and are backed by the U.S. Department of Agriculture. Most USDA lenders require a score of 580 or higher, though some will consider scores as low as 500. USDA loans do not require a down payment and are available only in designated rural areas.

How your credit score affects your interest rate and monthly payment

A lower credit score means a higher interest rate, which increases both your monthly payment and the total amount you pay over the life of the loan. The difference is substantial. On a $300,000 loan over 30 years, a borrower with a 740 score might pay 6.5 percent interest, while a borrower with a 620 score might pay 7.5 percent. That one percentage point difference adds roughly $200 to the monthly payment and costs about $72,000 more over 30 years.

Interest rates change daily based on market conditions, but your credit score determines where within that day's range you fall. A lender might offer 6.5 percent to borrowers with scores above 740, 6.8 percent to those with scores between 700 and 740, and 7.2 percent to those with scores between 620 and 700. These ranges vary by lender and by loan type, so it is worth getting quotes from multiple lenders before you commit.

What happens if your score is below 620

If your score is below 620, conventional loans are largely closed to you. Your options are FHA, VA, or USDA loans — if you meet the other requirements. An FHA loan with a score between 500 and 580 is the most common path for borrowers with lower scores. You will need a larger down payment (10 percent instead of 3.5 percent), and you will pay mortgage insurance for the life of the loan, which adds to your monthly cost.

Another option is to wait and rebuild your credit before applying. Paying down existing debt, making all payments on time, and not opening new credit accounts can raise your score by 50 to 100 points in 6 to 12 months. A higher score will lower your interest rate enough to offset the cost of waiting, especially on a large loan. A credit counselor or housing counselor can review your specific situation and tell you whether waiting or applying now makes more financial sense.

Steps to find out what score you need for a specific loan

The only way to know the exact score a lender requires is to contact them directly or work with a mortgage broker who can shop multiple lenders at once. When you call or meet with a lender, ask for their minimum credit score requirement for the loan type you are interested in, and ask what interest rate they would offer at your current score. Do not rely on online calculators or pre-qualification tools — they are estimates only.

A mortgage broker can pull your credit with multiple lenders in a short window (usually 14 to 45 days) without each pull hurting your score separately. This is called a rate shop, and it lets you compare offers side by side. If you are working with a real estate agent, ask them for broker recommendations. If you are applying on your own, contact lenders directly — banks, credit unions, and mortgage companies all offer home loans.

Before you apply anywhere, get a copy of your credit report from each of the three bureaus at annualcreditreport.com, which is the only free source authorized by federal law. Review the report for errors — wrong account balances, accounts that are not yours, or payments marked late when you paid on time. Dispute any errors with the bureau before you apply for a mortgage, because correcting them can raise your score.

Frequently Asked Questions

Does checking my credit score hurt my score?

Checking your own credit score does not hurt it. Only hard inquiries — when a lender pulls your credit as part of an application — affect your score, and the impact is usually small (5 to 10 points). Multiple hard inquiries from mortgage lenders within 14 to 45 days count as a single inquiry, so rate shopping does not damage your score the way opening multiple credit cards would.

Can I get a mortgage with a score of 600?

Most lenders will not approve a conventional loan with a score of 600. An FHA loan is your best option at that score — you would need a 10 percent down payment and would pay mortgage insurance. Some lenders may decline even FHA applications at 600, so you would need to contact lenders directly to find out who will work with you.

How long does it take to raise my credit score enough to buy a house?

It depends on what is hurting your score. Paying down credit card balances can raise your score 20 to 50 points in one or two months. Removing a late payment from your report takes seven years from the date of the missed payment. A collection account or bankruptcy stays on your report for seven to ten years, but its impact on your score weakens over time. A housing counselor can review your report and tell you what will move the needle fastest.

What if my score is just below the lender's minimum?

Ask the lender whether a larger down payment, a co-signer, or a letter of explanation for recent credit problems might change their decision. Some lenders have flexibility below their stated minimum if you have compensating factors — strong income, low debt, or a significant down payment. It is worth asking, but do not expect a yes. Getting quotes from multiple lenders is the fastest way to find one willing to work with your score.

Do I need to fix my credit before I talk to a lender?

No. A mortgage lender can tell you what score you need and what rate you would receive at your current score. That information helps you decide whether to apply now or spend a few months raising your score. A pre-qualification conversation does not commit you to anything and does not hurt your credit — only a formal application triggers a hard inquiry.