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3 min read Apr 18, 2023

What Credit Score is Needed to Buy a House?

Buying a house is a significant milestone in many people’s lives, but it requires careful planning and preparation. One of the essential factors to consider is your credit score to buy a house.

Your credit score impacts the type of loan you qualify for, the interest rate you’ll receive, and the amount you can borrow.

In this post, we’ll explore the credit score needed to buy a house and the importance of having a good credit score.

What is a Good Credit Score?

A good credit score is typically considered to be a score of 670 or higher. Having a good credit score can make it easier to get a loan, get insurance, or even get a job.

Monitoring and maintaining a good credit score is crucial for financial success.

What Credit Score is Needed to Buy a House?

The minimum credit score to get a mortgage when buying a house is 620. Having a higher credit score can increase the chances of mortgage approval. It can also help you secure a lower interest rate, potentially saving you thousands of dollars.

When it comes to buying a house, your credit score provides lenders with an indication of your creditworthiness and ability to repay debt.  Lenders consider the following factors while evaluating your mortgage approval:

  • Employment history
  • Debt-to-income ratio
  • Monthly income

» How to Buy a House With Bad Credit: Understand the terms, conditions, and minimum credit score requirements

Credit Score Required for Different Loans

  • Conventional: To qualify for a conventional loan, you need a minimum credit score of 620 or higher. Lenders typically require a down payment of at least 5% and may mandate private mortgage insurance if you put down less than 20%.
  • FHA: The credit score needed for an FHA loan is typically 580 or higher, as it is designed to help low-to-moderate-income borrowers with lower credit scores.
  • VA: Most lenders require a credit score of at least 620. The credit score requirements for a VA loan are generally lower than for conventional loans. These loans offer several benefits, including no down payment and no mortgage insurance requirements.
  • USDA: These loans offer 100% financing and typically require a credit score of 640 or higher. However, some lenders may require a higher score. USDA loans also have income limits and property location requirements.

What is the FICO Score for Mortgage?

The minimum FICO score for a mortgage is around 620 for most lenders. FICO stands for Fair Isaac Corporation, which is the company that developed the credit-scoring model used by most lenders.

The FICO score factors in your payment history, credit utilization, length of credit history, types of credit used, and new credit. The FICO score range is from 300 to 850, with higher scores indicating better creditworthiness. Lenders generally consider a credit score of 670 or higher as good for a mortgage.

» Mortgage Preapproval: Find out how you can get pre-approved for a mortgage

Final Word

In conclusion, your credit score plays a crucial role in your ability to buy a house. A good credit score increases mortgage approval chances and may result in better rates and terms.

It’s important to shop around and compare lenders to find the best loan program and interest rate based on your financial situation. By understanding the credit score requirements, you can take steps to improve or repair your credit score and increase your chances of becoming a homeowner.

So, whether you’re a first-time homebuyer or a seasoned homeowner, be sure to keep your credit score in check and work towards maintaining a good credit history.


1. What is the lowest credit score to buy a house?

Generally, a credit score of 620 is required for most conventional loans. On the other hand, FHA loans may accept borrowers with scores as low as 500 with a larger down payment.


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