The minimum credit score to buy a house depends on the loan type, not a single rule
There is no single credit score that works everywhere. The score you need depends on which kind of mortgage you are getting. A conventional loan (from a bank or mortgage company, not government-backed) typically requires a score of 620 or higher, though many lenders prefer 680 or above. FHA loans (backed by the Federal Housing Administration) often accept scores as low as 500 to 580. VA loans (for military members and veterans) and USDA loans (for rural properties) may have no stated minimum score, though lenders still assess your creditworthiness in other ways.
Your score is one factor among several. Lenders also look at your debt-to-income ratio (how much you owe compared to what you earn), your down payment size, your employment history, and whether you have missed payments recently. A score of 620 does not may provide a loan offer — it means you meet the floor, not that you will be approved.
Key Takeaways
- Conventional mortgages typically require a credit score of 620 or higher, though scores above 680 get better interest rates and terms.
- FHA loans accept scores as low as 500 to 580, making them an option if your score is below 620.
- VA and USDA loans have no published minimum score requirement, but lenders still evaluate your overall credit history.
- A higher score saves you money: each 20-point increase can lower your interest rate by 0.25 percent or more, which adds up over 30 years.
- Recent missed payments, high credit card balances, and new debt hurt your chances more than an older low score.
How lenders use your credit score when you apply for a mortgage
When you apply for a mortgage, the lender pulls your credit report and calculates your score using that information. Most mortgage lenders use FICO scores, which range from 300 to 850. They typically pull all three bureau scores (Equifax, Experian, and TransUnion) and use the middle score for their decision.
Your score tells the lender how likely you are to repay the loan based on your past behavior. A higher score means you have paid bills on time, kept credit card balances low, and not opened too many new accounts at once. A lower score suggests you have missed payments, carried high balances, or had collections or bankruptcy.
The lender also looks at the reason your score is what it is. A score of 600 because you had one missed payment five years ago looks different from a score of 600 because you missed a payment last month. Recent negative marks weigh more heavily than older ones.
Interest rates and costs change significantly with your credit score
Your credit score directly affects the interest rate you pay on your mortgage. A borrower with a score of 760 or higher might get an interest rate of 6.5 percent, while a borrower with a score of 620 might pay 7.5 percent or higher on the same loan amount. Over a 30-year mortgage, that 1 percent difference costs tens of thousands of dollars in extra interest.
The difference compounds. On a $300,000 loan at 6.5 percent, you pay roughly $686,000 total over 30 years. At 7.5 percent, you pay roughly $798,000 — an extra $112,000. Lenders also charge higher fees and may require a larger down payment if your score is lower.
Some lenders offer rate locks or points (upfront fees you pay to lower your rate), but these options are usually more expensive for lower-score borrowers. The math changes based on how long you plan to stay in the house and your current interest rate environment.
What to do if your score is below 620
If your score is below 620, you have several paths. The first is to wait and improve your score before applying. Paying down credit card balances, making all payments on time for several months, and not opening new accounts can raise your score by 50 to 100 points in 6 to 12 months. This is often the cheapest option because a higher score saves you far more in interest than the cost of waiting.
The second path is to look at FHA loans, which accept scores as low as 500 to 580. FHA loans require mortgage insurance (a monthly fee added to your payment), but they allow smaller down payments and are easier to get with a lower score. The trade-off is that you pay more per month, but you can buy sooner.
The third path is to find a co-signer — someone with a higher score who agrees to repay the loan if you do not. This is rare for mortgages (more common for personal loans), but some lenders offer it. Your co-signer's credit is on the line, and they are legally responsible for the debt.
A fourth option is to work with a mortgage broker who specializes in lower-score borrowers. Brokers have relationships with lenders who accept scores below 620 and may charge higher fees or rates, but they can sometimes find options when banks turn you down.
How to check your credit score before you apply
You can check your credit score for free through several services. AnnualCreditReport.com (the official site run by the three credit bureaus) gives you one free credit report per year from each bureau, though it does not include your score. Credit Karma, NerdWallet, and many banks and credit card companies offer free score estimates.
The score you see online may not be the exact score a mortgage lender sees. Lenders use FICO Score 2, 4, or 5 (mortgage-specific versions), while free tools often show you FICO Score 8 or a VantageScore. The difference is usually small (within 10 to 20 points), but it can matter at the borderline.
Before you apply for a mortgage, check your credit report for errors. Dispute any wrong information with the bureau directly — this can take 30 to 60 days to resolve, but it may raise your score. Do not apply for new credit cards, car loans, or other debt right before applying for a mortgage; each application triggers a hard inquiry that temporarily lowers your score.
Differences between loan types and their score requirements
| Loan Type | Minimum Score (Typical) | Down Payment | Other Notes |
|---|---|---|---|
| Conventional | 620 (680+ preferred) | 3–20% | Not government-backed; stricter requirements |
| FHA | 500–580 | 3.5% | Requires mortgage insurance; easier approval |
| VA | No published minimum | 0% | For military/veterans; lender-dependent |
| USDA | No published minimum | 0% | For rural properties; income limits apply |
What happens after you are approved: credit score and closing
Once a lender approves your mortgage, they will pull your credit again before closing (usually a few days before you sign the final paperwork). If your score has dropped significantly or you have missed a payment, taken on new debt, or opened new accounts, the lender can withdraw the offer. This is called a last-minute credit check, and it is standard practice.
To protect your approval, do not make large purchases, apply for credit, or miss any payments between approval and closing. Do not pay off collections or charge-offs right before closing either — a sudden payment can actually lower your score temporarily and trigger questions from the lender.
Frequently Asked Questions
Can I get a mortgage with a 580 credit score?
Yes, through an FHA loan. Conventional loans typically require 620 or higher. FHA loans accept scores as low as 500 to 580, though you will pay mortgage insurance and may face higher interest rates. The trade-off is that you can buy sooner with a lower score.
How much does my credit score affect my interest rate?
Each 20-point increase typically lowers your interest rate by 0.25 percent or more, depending on the lender and market conditions. On a $300,000 loan, a 1 percent rate difference costs over $100,000 in extra interest over 30 years. Waiting to improve your score often saves more money than buying immediately.
Will paying off old debt right before I apply help my score?
Not usually. Paying off collections or charge-offs can temporarily lower your score because it changes your account activity. It is better to let old negative marks age naturally. Focus instead on paying current bills on time and lowering credit card balances.
Do I need to be perfect to get approved?
No. Lenders expect most borrowers to have some credit history — a missed payment years ago or a small collection does not automatically disqualify you. What matters most is your recent payment history, your debt-to-income ratio, and your down payment size. A score of 650 with steady income and a 10 percent down payment often beats a score of 700 with high debt and no savings.
What if my credit score is different at each bureau?
Mortgage lenders pull all three bureau scores and use the middle one. If your scores are 640, 660, and 680, they use 660. If they are very different (more than 50 points apart), it may signal an error on one report. Check all three reports at AnnualCreditReport.com and dispute any mistakes.