What Credit Score Do I Need to Buy a House?

There is no single credit score you need to buy a house — it depends on the loan type. The common minimums: 620 for conventional, 580 for FHA with 3.5% down (or 500 with 10% down). VA and USDA set no official minimum, though most lenders look for roughly 580–620 for VA and 640 for USDA. Getting approved and getting the best rate are two different games — 740+ earns the best conventional pricing. Here's the full breakdown, plus how to raise your score before you apply.

What Is the Minimum Credit Score for Each Loan Type?

Minimums are set by the loan program — but individual lenders can require more (more on that below). Here's the starting grid:

A few things jump out. On conventional loans, 620 gets you in the door, but pricing keeps improving well above that. If your score sits between 580 and 620, FHA is often your only viable path, and it's a good one. And VA is the standout deal in all of mortgage lending for those who've earned it: no down payment, no monthly mortgage insurance, and typically the lowest rates of any program.

Why Did One Lender Say No and Another Say Yes?

Because of lender overlays. The table shows program minimums — the floor set by FHA or by Fannie Mae and Freddie Mac. Individual lenders may require more; it's common for a lender to demand 20 to 40 points above the published minimum.

So a "no" from one lender at 590 doesn't mean the program said no — it means that lender said no. Another FHA-approved lender may say yes to the exact same application. If you're near a minimum, shop three to five lenders before concluding you don't qualify — rate and fee quotes vary enough that shopping is worth real money too.

What Credit Score Gets You the Best Mortgage Rate?

740 or higher gets you the best pricing on a conventional loan. That's the real target — not the 620 minimum.

Conventional pricing is tiered: the higher your score, the lower your rate and the cheaper your PMI. A buyer at 760 typically pays noticeably less per month than an identical buyer at 640 — same house, same down payment. The score doesn't just affect approval; it prices every dollar you borrow for 30 years.

That doesn't mean waiting years chasing 740. Make a deliberate call: buy now at your current pricing, or spend a few months improving your score first — sometimes three months of credit work saves more than three years of a higher payment costs you. Ask a lender to run both scenarios.

Which Credit Score Does a Mortgage Lender Actually Use?

Not the one on your banking app. Lenders pull Equifax, Experian, and TransUnion and use the middle score. With scores of 612, 640, and 655, your qualifying score is 640.

With two borrowers, FHA, VA, and USDA loans generally qualify on the lower of the two borrowers' middle scores, while conventional loans can average them — the weaker file often sets the terms.

Mortgage lenders use older FICO scoring models that weigh collections and late payments differently than the free scores on credit apps — so expect your "mortgage score" to differ from what your phone shows. And if you have no score at all — a thin file rather than a bad file — some lenders can work with alternative credit history like rent and utility payments. No score isn't the same as a bad score.

How Can I Raise My Credit Score Before Applying?

Focused work for 60 to 90 days moves most scores meaningfully. Here's what works, in order of impact:

• Pull your reports and dispute errors. Get free reports at annualcreditreport.com and dispute anything wrong. Fixing errors is the fastest score gain available — it costs nothing and corrects the record.
• Pay revolving balances below 30% of their limits. Utilization is one of the heaviest score factors. Under 30% helps; under 10% helps more. You don't have to hit zero — just get balances down.
• Don't open new credit before applying. New accounts and inquiries ding you, and new debt changes your debt-to-income picture. Freeze the credit apps until after closing.
• Don't close old cards either. Closing a card shrinks your available credit, which can spike your utilization overnight.
• Become an authorized user. A family member with a long-standing, low-balance card can add you — their positive history on that account can lift your score even if you never touch the card.
• Pay everything on time, starting now. Payment history is the biggest piece of your score. One new 30-day late can undo months of progress.

Below 500? The honest next step isn't a mortgage application — it's a rebuild: dispute errors, get utilization down, avoid new applications. It takes months, not weeks.

Myths That Cost Buyers Homes

"You need perfect credit to buy." False. A 620 buys a house. A 580 buys a house. Even a 500 does, with 10% down on FHA. Perfect credit gets the best rate — it was never the entry ticket.

"Checking my credit for a mortgage will wreck my score." Mostly false. A single hard inquiry dings you a few points, and mortgage inquiries within a short shopping window count as one. Don't let this myth stop you from getting pre-approved.

"I should pay off all my collections before applying." Not always. Some old collections barely affect mortgage FICO models, and paying them can restart their "recent activity" clock in ways that hurt. Talk to a lender before paying anything off.

"Closing old credit cards helps my score." Backwards. It usually hurts, by shrinking your total available credit and raising your utilization ratio. Leave them open and unused.

Frequently Asked Questions

Can I buy a house with a 600 credit score?

Yes — most likely with an FHA loan. At 600 you're above the 580 FHA minimum for 3.5% down, so the program says yes. The practical question is lender overlays: some lenders want 620+ even for FHA, so shop a few FHA-approved lenders.

Does getting pre-approved hurt my credit score?

Barely. A hard inquiry typically costs a few points, and multiple mortgage inquiries within a short shopping window are scored as a single inquiry.

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

It depends on your starting point. Disputing errors can help within a billing cycle or two; paying down high utilization often shows results in 30 to 60 days as new balances report. Deeper issues like recent late payments take longer — months, not weeks. A lender can look at your report and give you a realistic timeline.

Do I need credit cards to build a score for a mortgage?

It helps, but it's not the only way. On-time payments on any credit account — cards, auto loans, student loans — build your file. If you have no revolving credit, a single low-limit card used lightly and paid in full each month is the simplest builder.

Will my spouse's credit score affect our mortgage?

Yes. On FHA, VA, and USDA loans, lenders generally use the lower of the two borrowers' middle scores — so the weaker score sets the terms. On conventional loans, lenders can average the two. If one partner's score is significantly lower, ask your lender whether applying solo or jointly gets the better deal.

Wondering where your score really stands? At Your Home Sold Guaranteed Realty – Kings of Real Estate, we help buyers in Knoxville, Sevierville, Maryville, Johnson City, and Farragut understand exactly what their credit qualifies them for today, using our proven system. Reach out for a free buyer consult — we'll review your situation, connect you with a trusted local lender who can map your fastest path to approval, and tell you straight whether buying now or a short credit tune-up serves you better.

— Tannor Giles, Your Home Sold Guaranteed Realty – Kings of Real Estate

Source links

• https://www.usatoday.com/story/money/money-management/real-estate/2026/09/18/how-to-get-a-mortgage-with-bad-credit/91293030007/
• https://fistarr.com/blog/mortgage-readiness/minimum-credit-score-by-mortgage-type
• https://www.wvlt.tv/bankrate-article/2026/07/31/what-is-good-credit-score-buy-house/
• https://kentuckymortgageblog.com/2026/01/06/credit-score-requirements-for-fha-va-usda-loans/
• https://fastermortgage.com/conventional-loan-vs-fha-vs-va-vs-usda-complete-comparison-guide-2026/

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