What Credit Score Do You Need to Buy a House?
The minimum scores for different loan types, what affects your score most, and how to improve it before applying.
3 min read · Updated 2026-04-01
For informational purposes only. This content is not financial or legal advice. Consult a licensed professional for advice specific to your situation.
Your credit score is one of the most important factors in getting a mortgage — it affects whether you're approved and what interest rate you pay. Here's what you actually need.
Minimum Credit Scores by Loan Type
| Loan Type | Minimum Score | Notes | |-----------|--------------|-------| | Conventional loan | 620 | Standard mortgage, best rates above 740 | | FHA loan | 580 (3.5% down) or 500 (10% down) | Government-backed, easier to qualify | | VA loan | No official minimum | Lenders typically want 580–620 | | USDA loan | 640 | Rural areas, no down payment required | | Jumbo loan | 700–720 | For loans above conforming limits |
These are minimums — the better your score, the better your interest rate.
How Much Does Your Score Affect Your Rate?
Significantly. On a $300,000 30-year mortgage, the difference between a 620 and a 760 credit score can mean paying $100–$200 more per month — or $36,000–$72,000 more over the life of the loan.
A 760+ score typically gets you the best available rates. The improvement from 620 to 760 is worth substantial effort.
What Makes Up Your Credit Score
- Payment history (35%) — paying on time is by far the most important factor
- Credit utilisation (30%) — how much of your available credit you're using (keep below 30%, ideally below 10%)
- Length of credit history (15%) — older accounts help
- Credit mix (10%) — having both revolving (credit cards) and installment (loans) credit
- New inquiries (10%) — applying for new credit temporarily dips your score
How to Improve Your Score Before Applying
Pay every bill on time: Set up autopay for minimum payments on everything. One missed payment can drop your score 50–100 points.
Pay down credit card balances: This is the fastest lever. If your card is at 80% utilisation, paying it down to 10% can raise your score 50–100 points within a billing cycle.
Don't close old accounts: Length of history matters. Even cards you don't use keep your average account age up.
Avoid new credit applications: Each hard inquiry dips your score slightly. Don't open new cards or loans in the 6–12 months before applying for a mortgage.
Dispute errors: Check your credit reports at annualcreditreport.com (free, official). Errors affect about 20% of reports — disputing them can cause rapid improvements.
How Long Does It Take to Improve?
- Paying down balances: 1–2 billing cycles (weeks)
- Recovering from a missed payment: 12–24 months
- Recovering from a bankruptcy or foreclosure: 3–7 years
If your score is below 620, a dedicated 12-month improvement plan can often get you to qualifying territory. It's worth the wait — the savings on interest over 30 years are substantial.
Other Factors in Mortgage Approval
Your credit score is important but not the only thing lenders look at:
- Debt-to-income ratio (DTI): your monthly debt payments vs. income. Keep below 43% (ideally below 36%)
- Down payment: more down = less risk for the lender = better terms
- Employment history: lenders typically want 2 years of stable employment
- Savings/reserves: having 2–6 months of mortgage payments in savings after closing strengthens your application