What Credit Score Do You Need to Buy a House?
Your credit score is one of the biggest levers in the mortgage process — it determines which loan programs you qualify for, what interest rate you'll receive, and how much you'll pay over the life of the loan. Here is exactly what you need to know before you apply.
Minimum Credit Scores by Loan Type
Different loan programs have different minimum score requirements. FHA loans: 580 for 3.5% down, 500 for 10% down. Conventional loans: 620 minimum; best rates start at 740+. VA loans: No official minimum set by the VA, but most lenders require 580–620. USDA loans: Typically 640, though some lenders go lower with manual underwriting. Jumbo loans: Usually 700–720 minimum.
These are the minimums to qualify — not the targets that get you the best outcome. Every 20-point improvement in your score can mean a noticeably lower rate and lower PMI cost on a conventional loan.
How Your Credit Score Affects Your Rate
On a conventional loan, credit score tiers directly set your Loan-Level Price Adjustment (LLPA) — a fee built into your rate. The difference between a 680 and a 740 score can be 0.5%+ in rate, translating to hundreds of dollars per month on a $400,000 loan.
FHA loans are less sensitive to credit score than conventional at the qualify/not-qualify line, but scores still affect your mortgage insurance premium tier with some lenders. VA loans offer the least credit-score sensitivity for eligible borrowers — the rate variation is narrower.
What Makes Up Your Credit Score
FICO scores (used by mortgage lenders) are calculated from five factors: Payment history (35%) — on-time vs. late payments. Amounts owed (30%) — credit utilization, total balances. Length of credit history (15%) — average age of accounts. Credit mix (10%) — types of credit (cards, installment, auto). New credit (10%) — recent hard inquiries and new accounts.
Mortgage lenders pull all three bureaus (Equifax, Experian, TransUnion) and use the middle score. If you're applying jointly, they use the lower middle score of the two borrowers.
How to Improve Your Score Before Applying
Pay down revolving credit balances to below 30% utilization — ideally below 10%. This single change can move scores 20–50 points within 30–60 days. Do not close old credit card accounts — account age matters. Do not open new credit accounts for 6–12 months before applying. Dispute any errors on your credit report at annualcreditreport.com. Ask a family member with strong credit to add you as an authorized user on an old, well-managed card.
Rapid rescore is an option through your lender: after you pay down balances or correct errors, a rapid rescore updates your file within 3–5 business days rather than waiting for the normal 30-day cycle. This is useful when you're close to a qualifying threshold.
What If Your Score Is Below the Minimum?
If you're below 580, your most effective path is 6–12 months of credit repair: pay down balances, make every payment on time, and avoid new credit. At 580, FHA becomes available. At 620, conventional opens up. At 640+, you're eligible for the broadest range of programs.
Your loan officer can pull a tri-merge credit report and run a 'what-if' simulation showing exactly which actions would move your score to the next threshold. This targeted approach is far more efficient than guessing.
Common Questions
Can I buy a house with a 580 credit score?
Yes, with an FHA loan. A 580 score qualifies you for FHA's minimum 3.5% down payment program. Scores 500–579 require 10% down. Conventional loans require a minimum of 620. Your loan officer will identify the best available program for your current score.
Does checking my credit score hurt my mortgage application?
Checking your own score (a soft inquiry) has zero impact. When a lender pulls your credit as part of an application, that is a hard inquiry and may reduce your score by 5–10 points temporarily. Multiple mortgage lenders pulling your credit within a 45-day window count as a single inquiry under FICO scoring rules.
How fast can I improve my credit score to buy a house?
Quick wins (1–3 months): pay down credit card balances below 30%, correct errors via rapid rescore. Medium-term (6–12 months): establish a pattern of on-time payments, reduce total debt. Sustained improvement above 720+ typically takes 12–24 months of consistent behavior. Ask your loan officer to run a simulator on your specific file — they can show you the exact actions and timelines for your situation.
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A licensed HCMG loan officer will walk you through your exact scenario — your credit, income, down payment, and goals — and tell you what you qualify for, with no hard credit check.