What Credit Score Do You Need to Buy a House in 2026?

The minimum credit score to buy a house is 500 for an FHA loan (with 10% down) or 580 for an FHA loan with 3.5% down. Conventional loans require a 620+ score. But the more important question is your rate: a 760+ score gets the best mortgage rates available, saving tens of thousands in interest over a 30-year loan compared to the 620 minimum.

What credit score to buy a house

1. Check your current score — free at annualcreditreport.com or through your bank/card issuer. Know your FICO score specifically, as mortgage lenders use FICO (not VantageScore).
2. Match your score to the right loan type — FHA for 580–619, conventional for 620+, with rates improving materially above 680, 720, and 760.
3. Estimate the rate difference — use a mortgage calculator with your score's typical rate vs the 760+ rate to see total interest savings over the loan term.
4. Decide: buy now or improve first — if you are at 680, spending 6 months raising to 760 before applying can save $30,000+ over 30 years on a $300,000 mortgage.

How credit score affects your mortgage rate and total cost

Mortgage rates are heavily tiered by credit score. The difference between qualifying and optimal rate can be substantial:

Rate differences are illustrative — exact rates vary by lender, loan type, loan size, and market conditions. The pattern is consistent: each tier above 620 saves materially over the loan term.

The fastest ways to raise your score before applying

The single highest-leverage action is reducing credit utilisation. If you have $10,000 in available credit and carry $7,000 in balances (70% utilisation), paying that to $800 (8%) can raise your score 30–50 points within one billing cycle. This is faster and more impactful than any other lever.

Credit score vs down payment trade-off

You face a choice: use cash reserves to improve your score (by paying down credit card debt) or keep that cash as a larger down payment. Generally:

• If you are at 680 and would need 6 months to reach 760, the rate savings ($30,000+) usually outweigh the opportunity cost of waiting — unless you are in a rapidly rising market or the payments are equally comfortable.
• If you are at 720, the additional savings above 760 are smaller ($12,000 over 30 years) and the break-even on waiting 3–6 months may not be compelling.
• If you are at 580–619, the FHA → conventional refinance path is common: buy with FHA now, build equity and improve credit, refinance to conventional to eliminate lifetime MIP.

Authoritative sources

• HUD — FHA Loan Requirements — Official HUD documentation on FHA credit score minimums, down payment requirements, and mortgage insurance premium structure — the authoritative source for FHA qualification thresholds.
• myFICO — How Credit Scores Affect Mortgage Rates — FICO's own tool for estimating how different credit score tiers affect mortgage rates in your state — directly from the score model that mortgage lenders use.

Key takeaways

• The minimum credit score to get a mortgage is 500 (FHA, 10% down) or 580 (FHA, 3.5% down). Conventional loans require 620+. Most buyers need 620–680 just to qualify.
• A 760+ score typically unlocks the lowest mortgage rates. The gap between 620 and 760+ can cost $46,000–$78,000 in additional interest on a $300,000 30-year mortgage.
• Paying credit card balances below 10% utilisation is the fastest, highest-leverage score improvement — can add 20–50 points within one billing cycle (30 days).
• Mortgage lenders use your FICO score (usually FICO Score 2, 4, or 5) — not VantageScore. Check your actual FICO score through myFICO, your bank, or a credit card issuer that provides free FICO scores.
• Shopping multiple lenders within a 45-day window triggers only one hard inquiry for scoring purposes — you can compare rates from 3–5 lenders without additional score penalty.
• Once you know your budget, the affordability by salary guide translates your qualifying mortgage into a maximum home price using the 28/36 rule and your specific income.

Frequently asked questions

What is the minimum credit score to buy a house?

The minimum credit score depends on the loan type. FHA loans allow a 580 score with 3.5% down (or as low as 500 with 10% down). Conventional loans typically require 620+. VA loans have no official minimum but lenders usually require 620+. USDA loans typically need 640+. A 760+ score unlocks the best conventional mortgage rates.

How much does credit score affect mortgage rate?

Significantly. On a $300,000 30-year mortgage in 2025, the rate difference between a 620 score and a 760+ score can be 0.5–1.0%. That gap translates to roughly $31,000–$65,000 in extra interest over the life of the loan. Improving your score from 680 to 760 before applying can save tens of thousands.

How quickly can I raise my credit score before buying a house?

For a moderate improvement (40–60 points), a realistic timeline is 3–6 months by: paying down credit card balances below 10% utilisation, disputing any inaccurate items, and avoiding new credit applications. For a larger improvement, allow 12–24 months. The highest-leverage action is reducing credit utilisation — it affects score within 1 billing cycle.

Does getting pre-approved for a mortgage hurt my credit?

A mortgage pre-approval triggers a hard inquiry, which typically reduces your score by 5 points or less temporarily. FICO treats multiple mortgage inquiries within a 45-day window as a single inquiry — you can shop multiple lenders without additional score damage. The impact is minor compared to the rate savings from having a strong score.

Can I buy a house with a 600 credit score?

Yes, through an FHA loan with a 580+ score (or 500–579 with 10% down). With a 600 score, FHA is the primary option. The trade-off: FHA requires mortgage insurance (MIP) for the life of the loan, whereas conventional loans allow PMI cancellation at 20% equity. As your score improves above 620, refinancing to a conventional loan becomes an option.