What Credit Score Do You Really Need to Buy a Home?

If you’re thinking about buying a home, one of the first numbers that matters—before price, down payment, or interest rates—is your credit score. But how good does your credit really need to be to qualify for a mortgage?

Let’s break it down.

What Is a Credit Score?

Your credit score is a number between 300 and 850 that shows lenders how likely you are to repay your debts. The higher your score, the better your chances of getting approved for a loan—with better rates, too.

Minimum Credit Scores by Loan Type

Here’s what most lenders typically look for:

Loan Type	Minimum Score Required	Notes
Conventional Loan	620	Better rates with 740+ credit.
FHA Loan	580 (with 3.5% down)	Can go as low as 500 with 10% down.
VA Loan	No set minimum	Many lenders prefer 620+. For eligible veterans and active military.
USDA Loan	640	For rural or suburban buyers who meet income limits.

What If Your Credit Score Is Lower?

Don’t panic. A lower credit score doesn't automatically disqualify you. Some lenders work with credit-challenged buyers or offer programs designed to help you qualify.

You can also take steps to raise your score, like:

• Paying down credit card balances

• Making all payments on time

• Avoiding new credit applications before you buy

Why Higher Scores Matter

Higher credit scores don’t just help you get approved—they save you money. Lenders reward good credit with:

• Lower interest rates

• Smaller down payments

• Better loan terms

Over the life of a loan, a better score can save you tens of thousands of dollars.

Final Thought

While 620 is often the minimum score for most loan types, the sweet spot is usually 700 and up. But if you’re not quite there yet, don’t let that stop you from starting the process. The right lender—and the right realtor—can help you explore options that work for your unique situation.

Have questions about your credit or how to start the homebuying process? Let’s connect—we’re here to help you hammer out your housing decisions!