What Credit Score Do I Need to Buy a House?

There's No One Magic Number

Different loan programs set different minimums. A score that's fine for an FHA loan might not work for a conventional loan with the best rate. A score that works for one lender might get you a worse deal at another. There's no single number that unlocks the door for everyone.

But here's what most people miss: the conversation is never just about whether you qualify. It's about what it costs you to qualify. two people can both get approved for the same house—one at 6.25% and one at 7.25%—and one of them will pay $84,000 more in interest over thirty years. Same house. Same loan program. Different credit scores.

That's the part the online articles don't scream loud enough. Getting approved is one thing. Getting approved at a rate that doesn't quietly drain your bank account for three decades is another.

Can You Actually Buy With a 620 Score?

Yes. A score around 620 is often the minimum for a conventional loan backed by Fannie Mae or Freddie Mac. Most lenders won't go below that for conventional, but at 620, the door is open.

But yes comes with a caveat. Lenders price risk into the rate. A 620 score tells them you're a higher-risk borrower than someone with a 760 score, so they charge more. The difference isn't symbolic. It hits your monthly payment every single month.

Let me tell you about my friend's situation. He had 640 when he finally called a loan officer—fully expecting to get turned down. The loan officer didn't hesitate. "640? That's workable. Let's talk." He closed on a condo three months later. His rate wasn't the best on the market, but he was in a house. His rent was gone. He was building equity. And he had a plan to refinance once his score climbed.

The Rate Tiers That Actually Matter

Forget the myth that you need 760+ or you're locked out. Here are the real thresholds—and what they mean for your wallet.

Take a second look at that 620 line. A lot of first-time buyers assume they're disqualified if they're not above 700. They're not. They're just in a different rate bucket.

And here's what those buckets actually cost. This table shows a $350,000 loan at today's approximate rates:

This is why improving your score—even by 20 or 30 points—can matter a lot. Moving from 640 to 680 could bump you into a better rate tier and save you tens of thousands of dollars. We break this down in more detail in our income guide, which shows how rate differences stack against your earnings.

Where FHA Loans Fit In

If your score is below 620—or you're in the low 600s and want a better shot at approval—FHA loans are the safety net. They're backed by the Federal Housing Administration and designed for borrowers who don't meet conventional standards.

FHA loans accept scores as low as 580 with 3.5% down. Sometimes lower with a bigger down payment. They're also more forgiving of past credit problems—late payments, collections, even bankruptcies that have aged a few years. If you've been through some financial turbulence and have been stable for a couple of years, FHA is worth a real look.

But here's the tradeoff that doesn't get explained clearly enough. On an FHA loan with less than 10% down, the mortgage insurance premium stays for the life of the loan. You can't cancel it. The only way out is refinancing into a conventional loan later.

So FHA can absolutely get you in the door. But it's worth going in with a plan to move out of it once your credit improves. For a full comparison of the costs, check out our FHA vs Conventional loan guide——it shows you exactly where each one wins and loses.

Your Score Isn't the Whole Story

Here's something lenders don't tell you in the pre-approval ad they mail to your house: they don't just look at a three-digit number and stamp "approved" or "denied." They look at your whole financial picture.

Someone with a 660 score, a stable job, low debt, and a solid down payment can be a stronger applicant than someone with a 740 score who's maxed out on credit cards and living paycheck to paycheck. I've seen this happen. A friend of mine had better credit but worse numbers everywhere else. The lender was more nervous about him than about the guy with 660 who had a decade at the same company and paid off his car loan early.

Other things lenders weigh:

A credit score is one piece. An important piece. But it's not the only piece. If you're wondering how your full financial picture stacks up, our affordability guide walks through exactly what lenders look at.

What Actually Moves the Needle

If you're six to twelve months out from buying, there are a few things that can shift your score faster than most people realize. Not all credit advice is created equal. Here's what actually works.

Pay everything on time. Full stop.

Payment history is the single biggest factor in your credit score—roughly 35% of the FICO formula. Even one 30-day late payment can knock 60 to 100 points off. If you're prone to forgetting, set up autopay for at least the minimum on every account. One missed utility bill that goes to collections can crater six months of score-building work.

Keep credit card balances low

This one surprises a lot of people. Using a big chunk of your available credit—even if you pay it off in full every month—can lower your score. The credit bureaus look at the balance on your statement date, not the date you pay it. Keep your utilization under 30% of your limit. Under 10% is even better. If your card has a $10,000 limit, try to keep the statement balance below $3,000. Below $1,000 is ideal.

Do not open new accounts before applying

Every credit inquiry dings your score a few points. More importantly, opening a new car loan or credit card changes your debt-to-income ratio, which lenders will see. I've watched people sabotage their pre-approval by financing a car three weeks before closing. If you're house hunting, put other borrowing on hold. Don't even open a new store credit card for that couch you're planning to buy.

Check your actual credit report

You can get a free copy from each of the three major bureaus once a year at annualcreditreport.com. Look for errors—accounts you don't recognize, incorrect late payments, balances that are wrong. Dispute anything that looks off. I know someone who found a medical collection on their report for a bill they'd already paid. Removing it boosted their score by 45 points. That's three minutes of work that saved them thousands.

The CFPB has a good guide on how to read and dispute credit report errors if you're unsure where to start.

Should You Wait for a Better Score?

This is the question that doesn't have a universal answer. It depends on how close you are to a threshold and how much waiting would actually cost you.

If improving your score by 30 points moves you from the 620 bucket to the 680 bucket, and the difference is $150 a month, waiting six months to do the work could save you $54,000over 30 years. That math is compelling. Six months of patience for a return that big? Worth it.

But if you're already in your mid-600s, financially ready, and the house you want is within reach, waiting for a 740 score that might take two or three years isn't necessarily smart. The market moves while you wait. Prices and rates change. A modestly higher rate on a house you can afford now might beat waiting two years and discovering that the same house costs 15% more.

If you're trying to figure out whether 5% down vs 20% down makes more sense for your credit situation, our article on buying with 5% down goes through the tradeoffs including how PMI interacts with your credit tier.

📊 From Our Calculator: How Your Rate Changes Your Payment

These aren't estimates. They're exact calculations from MortgagePro's mortgage calculatorformula. Here's what different credit score tiers could mean for your monthly payment:

Assumptions: $400,000 loan (20% down on $500,000 home), 30-year fixed. Taxes at 1% (~$417/mo), insurance at national average (~$142/mo). Rates by credit tier are illustrative based on industry averages as of mid-2026.

Source: MortgagePro Calculator — see how your rate changes your payment.

See What Your Score Means in Real Dollars

Credit score charts are helpful in the abstract. What's more useful is seeing how your actual score—and a slightly better or worse score—changes your monthly payment in real dollars.

Go play with our mortgage calculator. Enter the rate you'd likely get with your current score. Then try a rate half a point lower—which might be available if your score were 30 points higher. The monthly difference tells you exactly how much improving your credit is worth.

That number might motivate you more than any chart or article ever could. For me, it was the moment I realized that spending three months paying down credit cards and disputing one error on my report would save me roughly $180 a month. That's $2,160 a year. For three months of disciplined habits.

And if you're curious what a lender would say about your specific numbers—not your credit score, but your income, your debts, your down payment—our income guide for a $500,000 house shows you exactly how lenders calculate what you can afford. It might be closer than you think.