What Credit Score Is Needed to Buy a House?

Wondering if your credit score is good enough to buy a house? You’re not alone—this question makes a lot of people sweat. The truth is, lenders use your credit score as a quick snapshot of how much they can trust you with a home loan. Get this number just right, and you’ll open doors (literally). Fall short, and even a great salary won’t always help.

The magic number most banks want to see is 620. This is the typical minimum for conventional loans. Go higher—think 740 or more—and you’ll probably score lower interest rates, meaning cheaper payments every month. But if your score’s a bit on the scruffy side, like in the 500s, don’t panic yet. There are specific loans out there, like FHA or VA, that are more forgiving.

• Why Credit Score Matters When Buying a House
• Minimum Credit Scores for Different Types of Loans
• How a Low Credit Score Impacts Your Mortgage
• Tips to Boost Your Credit Before Buying
• Using Online Tools to Check and Improve Your Standing

Why Credit Score Matters When Buying a House

Your credit score isn’t just a random number—lenders look at it first when you ask for a home loan. This is the main way banks measure how you’ve handled debt before. If you’ve paid bills on time and kept your balances low, your score goes up. Messy payment history? Your score drops.

The difference in score can really add up when you’re talking about buying a house. Let’s say your score is 620, the bare minimum for most conventional loans. With that, you’ll get a loan—but pay higher interest. If your score is above 700, you’ll almost always qualify for better deals and pay way less over the life of your mortgage. That can mean thousands in your pocket over the years.

Check out how credit scores affect real mortgage options and interest rates:

Your credit score also affects how much the bank will let you borrow. Higher scores mean bigger loans with less hassle. On the flip side, a low score usually means the lender will want more proof you can pay, like bigger down payments or extra documents.

So if you’re thinking about jumping into the real estate market, knowing how your credit score measures up can save you stress—and a ton of money. It's your leverage.

Minimum Credit Scores for Different Types of Loans

Not every home loan plays by the same rules. Lenders check which kind of loan you want before they look at your credit score. Where you land with your three-digit number decides what kind of mortgages you can actually get—plus, it’s probably the single biggest thing that controls your odds of hearing 'yes' from a lender.

Here’s how the numbers usually break down by loan type:

• Conventional loans: Most banks look for a credit score of 620 or higher. Some online lenders might squeak by with a little less, but usually not by much.
• FHA loans: These are government-backed and easier to get. You usually need a 580 if you want to put down just 3.5%. If your score is between 500 and 579, you’ll need a bigger down payment (10%), and not every lender is cool with those lower scores.
• VA loans: These are for veterans and active service members. Crazy enough, there’s no official minimum credit score from the VA, but most lenders want to see at least 620. Some might go down to 580, but it gets trickier the lower you go.
• USDA loans: These are meant for people buying homes in rural areas. The typical minimum score is 640, but some lenders go lower if you’ve got a strong financial story or a decent down payment.

Each loan type has its own perks and trade-offs. A higher credit score usually scores you better interest rates and saves you real money in the long run. But government-backed loans offer more wiggle room if your credit isn’t perfect. Before applying, pull your credit report and see where you stand—being proactive can save you a nasty surprise when the lender takes a look.

How a Low Credit Score Impacts Your Mortgage

A low credit score can make buying a home a real grind. First off, expect to pay more interest on your loan. Lenders see lower scores as riskier, so they cover themselves with higher rates. Even a difference of 50 points can push your monthly payment up by hundreds of dollars over the life of your mortgage. Check out how much rates can swing based on your score:

If your score dips below 620, you might not even qualify for a standard conventional mortgage. You’d need to look at special loan programs, like FHA, that accept lower numbers, but those loans often come with extra fees or mortgage insurance that can add a chunk to your payment each month.

Here’s what you’re likely to face if your score is on the lower end:

• Bigger down payment needs. Lenders sometimes want more cash up front to feel secure.
• Extra requirements. You could end up jumping through more hoops, like providing more paperwork or getting a co-signer.
• More limits on how much you can borrow or what kind of property you can buy.
• Private mortgage insurance (PMI) for conventional loans if you’re under 20% down—this adds to your cost.

Think about that bottom line: over a 30-year mortgage, even a 1% interest rate hike can add up to $20,000 or more in extra payments. So, while you can still buy a place with a lower score, it’s gonna cost you. That’s why taking time to bump up your score before house hunting can pay off big later.

Keeping your credit score in decent shape means better options and a cheaper loan. There’s nothing fancy about it—lenders just want some proof you can be trusted to pay them back.

Tips to Boost Your Credit Before Buying

Getting your credit score in shape before house hunting can make a real difference in what you pay and which homes you can afford. It’s not about gaming the system—it’s just about knowing how the system works. Here’s what actually moves the needle for lenders, with steps anyone can follow.

• Pay your bills on time—always. Payment history is the single biggest factor in your score, making up about 35%. Even one missed payment can tank your score quick. Got something late? Call your lender and ask if they can remove the late mark after you pay it.
• Keep credit card balances low. Using a lot of your available credit sends up red flags. Aim to keep what you owe below 30% of your limit on each card. Bonus: If you can swing 10%, that’s even better for your score.
• Avoid opening new credit lines right before you buy. Every time you apply for a credit card or personal loan, your score can dip a few points. Wait until after you close on a home for those big furniture cards or auto loans.
• Don’t close old accounts (even if you don’t use them). Older credit lines show a longer financial history and help your score. Just cut up the card if you don’t want to be tempted.
• Check your credit reports for mistakes. Go to AnnualCreditReport.com and pull your report from all three bureaus. If you spot anything weird—wrong balance, an account that’s not yours, or a missed payment you know you made—file a dispute to fix it fast.

The good news? Small changes add up. According to FICO, the average score boost after successfully disputing a major error is about 25 points within a month. Paying down high balances or making all payments on time for just a few months can also nudge your score in the right direction.

*Estimates based on FICO and VantageScore data from 2024

Give yourself at least three months before starting your home search—most improvements need that kind of runway to show up on your report. It’s like prepping for a marathon, not a sprint. Take each of these steps, and you’ll give lenders every reason to give you the thumbs up.

Using Online Tools to Check and Improve Your Standing

If you want to buy a house, checking your credit score is honestly step number one. These days, you don’t have to shell out cash or wait for a letter in the mail. Plenty of legit sites like Credit Karma, Experian, and NerdWallet let you check your score instantly—and for free. Most banks and even some credit card companies show your score right in their app. If you’re itching to know where you stand, there’s really no excuse anymore.

Now, here’s the kicker: Just checking your score won’t ding your credit, so don’t worry about that myth. These are called ‘soft pulls’ and they don’t affect your history. By peeking at your score regularly, you’ll spot mistakes fast and see exactly what’s helping or hurting your odds of getting a mortgage. One 2024 study from the Consumer Financial Protection Bureau found that 1 in 5 people had at least one error on their credit report—fixing these can make a real difference.

If you spot a problem or see room for improvement, a bunch of online tools can walk you through it step by step. Want some practical moves? Here’s what most apps and sites suggest:

• Check all three major credit reports (Equifax, Experian, TransUnion) for free at AnnualCreditReport.com.
• Use built-in simulators on sites like NerdWallet and CreditWise to see how paying down debt or opening a new card could shift your score.
• Get alerts for big changes so you know if your score suddenly drops (or, hopefully, jumps up).
• Automate payments and track your credit utilization—some tools show this as a pie chart so you don’t have to guess.

Some online platforms also help you figure out what kind of home loan fits your score. Fancy calculators estimate your likely interest rate and monthly payment—just by plugging in your credit number. Here’s a quick look at average rates from major loan types by credit score, based on 2025 data:

Bottom line? Online tools take the guesswork out of getting mortgage-ready. With a few clicks, you’ll know exactly where you stand and what to fix to boost your chances of landing that home loan.