9 min read
What Credit Score Do You Need to Buy a House?
Lenders have hard minimum credit scores by loan type, and your score also sets your interest rate. Here is exactly how the bands work and what a 40-point swing actually costs.
The credit score question gets asked early because it gates everything else. If you don't clear the minimum, you can't get the loan at all. If you barely clear it, you'll pay a rate that costs you tens of thousands of dollars over the life of the mortgage. The score is doing two jobs at once: deciding whether you qualify, and pricing how expensive your loan will be.
The good news is the minimums are public, the rate impact is measurable, and most of the levers that move your score work on a 30–90 day timeline rather than years. This guide walks through the minimums by loan type, how rate pricing works, and the specific moves that lift a score before an application.
Minimum credit scores by loan type
Conventional loans (Fannie Mae and Freddie Mac) generally require a 620 minimum FICO score. Most lenders treat 620–639 as a 'special' tier with extra documentation and tighter DTI ratios; the sweet spot for a smooth conventional approval is 660+. Above 740 you're in the best pricing tier.
FHA loans require a 580 minimum to put 3.5% down, or 500 to put 10% down. FHA is the most score-tolerant loan widely available, which is why first-time buyers with thin or rebuilt credit gravitate to it. The tradeoff is mandatory mortgage insurance for most of the loan's life.
VA loans have no federal minimum, but most lenders impose a 580–620 overlay. USDA rural loans usually require 640. Jumbo loans (above conforming limits) typically require 700+, sometimes 740+, because the lender keeps the loan on its balance sheet rather than selling it to Fannie or Freddie.
How your score actually sets your rate
Conventional mortgage pricing uses Loan-Level Price Adjustments (LLPAs), a published Fannie Mae matrix that hits your rate (or your upfront fees) based on credit score and loan-to-value ratio. The matrix has six score bands: <640, 640–659, 660–679, 680–699, 700–719, 720–739, and 740+. Every band-step typically moves your rate by 0.125% to 0.375%.
On a $300,000 30-year loan, a 0.5% higher rate adds roughly $90/month — over $32,000 across the loan's life. The full spread between a 620 score and a 760 score on the same loan can be 0.75% to 1.25%, which is real money: $135–$220 per month on a typical loan.
Which score do lenders actually pull?
Mortgage lenders pull all three bureaus (Experian, Equifax, TransUnion) and use the middle score. If you have a joint application, they use the lower of the two middle scores. Pulling from a single bureau through Credit Karma or a credit card app gives you a useful directional read but not the number that will price your loan.
Mortgage lenders also use older FICO models (FICO 2, 4, and 5) rather than the FICO 8 most consumer apps display. These older models are stricter on collections and rehabilitated accounts, which is why your 'official' mortgage score is often 10–30 points lower than what your credit card app shows.
The fastest score moves before an application
Pay down revolving balances. Your utilization ratio — credit card balances divided by limits — is the single most movable score input. Going from 50% utilization to under 10% can lift a score 30–60 points in one billing cycle. Pay down before the statement closes, not after.
Don't open or close cards in the 6 months before applying. New accounts ding your average account age and add a hard inquiry. Closing old cards reduces your total available credit and can spike your utilization ratio overnight.
Dispute legitimate errors, but don't dispute valid items hoping they'll fall off. Mortgage lenders will see active disputes during underwriting and may pause the file until they're resolved. Settle and dispute the right items at least 60 days before applying.
What if your score is below the minimum?
Three realistic paths. First: rapid rescore. If your lender finds a specific item (paid-down balance, removed collection, corrected error) that should improve your score, they can pay $25–$50 to push it through the bureaus in 3–5 business days. This is faster than the normal 30-day cycle.
Second: a co-borrower or co-signer with a stronger score. Lenders use the middle of all borrowers' middle scores, taking the lower one when applicants disagree, but adding a co-borrower can shift DTI and asset numbers enough to make the file work even if the score floor is set by the weaker score.
Third: target an FHA loan with a 580 score and 3.5% down. FHA is designed for exactly this scenario. Refinance to a conventional loan in 1–3 years once your score and equity have built up, and at that point the conventional PMI rules give you a clear path out of the FHA's permanent MIP.
Key takeaways
- —Conventional loans need 620+; FHA accepts 580 (3.5% down) or 500 (10% down).
- —Mortgage lenders use the middle of three bureau scores and older FICO models.
- —Each credit-score band step moves your rate by roughly 0.125%–0.375%.
- —The fastest lift before applying is paying revolving balances under 10% utilization.
Try the math on your numbers
Frequently asked questions
Does checking my own credit hurt my score?+
No. Pulling your own report is a soft inquiry and does not affect your score. Only hard inquiries from lender applications affect your score, and they fade within 12 months.
How long does it take to raise a credit score 50 points?+
If the lift comes from paying down revolving balances, 30–60 days. If it requires resolving collections or rebuilding from a thin file, 6–12 months. Score rebuilds from major events (foreclosure, bankruptcy) take 2–7 years to fully unwind.
Can I get a mortgage with no credit history?+
Yes, through manual underwriting on FHA, VA, or USDA loans. The lender uses alternative credit references (rent, utilities, phone) instead of a score. The process takes longer and rates are typically priced like a low-score borrower.
Do mortgage pre-approvals hurt my credit?+
One pre-approval is one hard inquiry, worth roughly 5 points temporarily. Multiple mortgage inquiries within a 14–45 day window count as a single inquiry for scoring purposes — so it's safe to shop several lenders without compounding the hit.
