What Credit Score Do You Need to Buy a House?

The short answer: most buyers need a credit score somewhere between 580 and 620 to qualify for a mortgage, though the exact minimum depends on the type of loan you choose. A score of 740 or higher typically earns the best interest rates, but plenty of buyers purchase homes with scores well below that. We talk with buyers about this constantly, and the biggest surprise is usually how much lower the real minimum is than what people assume. Here's what you actually need to know, loan type by loan type.

Key Takeaways

• FHA loans accept credit scores as low as 580 with just 3.5% down, or as low as 500 with 10% down.
• Conventional loans have long used 620 as the benchmark minimum, and most lenders still apply it as a practical floor.
• VA loans have no official minimum credit score, though most lenders look for 580 to 620, and USDA loans typically require about 640 for automated approval.
• Pennsylvania's PHFA Keystone Advantage Assistance loan, a 0% interest second mortgage for down payment and closing costs, requires a minimum 660 credit score, higher than FHA's 580 minimum.
• A score of 740 or higher generally qualifies for the best available interest rates.
• Mortgage lenders typically pull your scores from all three credit bureaus and use the middle score, which is often different from the number you see in a banking or credit app.

Minimum Credit Score by Loan Type

The "minimum credit score" isn't a single number, it's different for each loan program:

• FHA loans: A score of 580 or higher qualifies you for the minimum 3.5% down payment. If your score falls between 500 and 579, you can still qualify with 10% down.
• Conventional loans: The long-standing benchmark is 620. Fannie Mae and Freddie Mac's automated underwriting systems have moved away from a hard 620 cutoff, but most lenders still use 620 as their own minimum, so it remains the number to plan around.
• VA loans: The Department of Veterans Affairs doesn't set a minimum score, leaving that to individual lenders, who commonly look for 580 to 620. VA loans also offer 0% down for eligible veterans and service members.
• USDA loans: There's no official federal minimum, but lenders typically require a 640 for automated approval. USDA loans offer 0% down in eligible areas with income limits.
• Jumbo loans: Larger loan amounts typically require a score of 700 or higher.

What Score Gets You the Best Rates?

Meeting the minimum gets you approved, but your score also determines how much your loan costs. Credit scores generally fall into these tiers:

• Below 580 (poor): Limited options, mostly FHA with a larger down payment.
• 580 to 669 (fair): Qualifies for FHA and many other programs, usually at higher rates.
• 670 to 739 (good): Access to conventional loans at competitive rates.
• 740 to 799 (very good): Typically qualifies for the best advertised rates.
• 800 and above (exceptional): Same top-tier pricing as 740+ in most cases.

The practical takeaway is that you don't need a perfect score, but every step up a tier can lower your interest rate and your mortgage insurance costs, which adds up over a 30-year loan. As we've covered in our tips on getting a mortgage for your new home, the higher your score, the larger the loan a lender is likely to approve and the better your rate tends to be.

It's Not Just About the Score

Your credit score is one of several factors lenders weigh. They'll also look at:

• Debt-to-income ratio (DTI): Lenders generally prefer your total monthly debt payments, including your new mortgage, to stay under about 43% of your gross monthly income.
• Down payment: A larger down payment can offset a lower score, and a score at the lower end often pairs with a larger required down payment.
• Employment history: Typically two years of steady work history or income.
• Cash reserves: Savings left over after closing give lenders added confidence.

It's also worth knowing that a perfect score is rarely required. As we explain in our post answering key questions about buying a new home, a pristine credit history isn't always a must, and getting approved doesn't require a huge pile of savings either.

Things Most Buyers Don't Realize About Credit Scores

A few details tend to catch people off guard:

Your lender sees a different score than your app does. Free credit-monitoring apps often use different scoring models than mortgage lenders. Lenders typically pull your score from all three bureaus (Equifax, Experian and TransUnion) and use the middle one, so the number you've been watching may not match exactly.

Co-borrowers combine in a specific way. When two people apply together, lenders generally use the lower of the two middle scores, which means a strong score on one application can be pulled down by the other.

Shopping for rates won't wreck your score. Multiple mortgage inquiries within a short window, typically 14 to 45 days depending on the scoring model, count as a single inquiry, so comparing lenders is smart and low risk.

Your credit needs to stay stable after pre-approval. Opening new accounts, financing a car or running up credit cards between pre-approval and closing can change your score or DTI and put your loan at risk, which matters even more when you're building a new home and closing is several months away.

How to Improve Your Credit Score Before You Apply

If your score needs a boost, the good news is that the biggest improvements often come from a few simple habits:

1. Check your reports for errors. You can pull free reports from all three bureaus at annualcreditreport.com without affecting your score, and disputing inaccurate items can lift your score quickly.
2. Pay down credit card balances. Keeping your credit utilization below 30% of your limits is one of the fastest ways to raise your score, and results can show up within one or two billing cycles.
3. Pay every bill on time. Payment history is the single biggest factor in your score.
4. Avoid closing old accounts or opening new ones. Length of credit history and recent inquiries both affect your score.
5. Start early. The ideal time to begin the mortgage process is two to three months before you need to be approved, giving you time to address any surprises.

Pennsylvania Buyers: Assistance Programs and Their Credit Requirements

If you're buying in Pennsylvania, there's one more credit score to know about. The Pennsylvania Housing Finance Agency (PHFA) offers programs that make the upfront costs of buying easier, but they come with their own credit requirements, which are typically higher than the minimums for the loan type alone.

The best-known example is the Keystone Advantage Assistance Loan, a 10-year, 0% interest second mortgage that can help cover your down payment and closing costs. Here's what to know:

• Minimum credit score of 660 for all borrowers.
• Must be paired with a PHFA first mortgage, such as the Keystone Home Loan, a Keystone Government loan or HFA Preferred.
• Limited uses: assistance can only go toward the minimum required down payment and/or closing costs.
• Asset limit: your liquid assets can't exceed $50,000 after you set aside the funds needed to close.
• Amount: assistance is generally capped at 4% of the purchase price, up to $6,000.

The Keystone Home Loan itself, PHFA's 30-year fixed-rate mortgage for first-time buyers and veterans, also generally calls for a 660 minimum on conventional loans insured through the Pennsylvania Housing Insurance Fund. Buyers typically work through a PHFA-participating lender, and homebuyer education may be required.

This is a good example of why the "minimum credit score" depends on the program. You might qualify for an FHA loan at 580 on your own, but if you want PHFA assistance, aim for 660 or higher. Our first-time homebuyer tips cover more on Pennsylvania programs, and since terms and funding change, it's worth confirming current details with PHFA or a participating lender.

Credit and Buying a New Construction Home

If you're building new, timing matters a little differently, because there's a gap between signing a purchase agreement and closing. When you sign an Agreement of Sale with us, buyers are asked to apply for their mortgage within 5 days, so having your credit in good shape before you commit makes everything smoother. Our financing page walks through the mortgage process step by step, from application through settlement.

It also helps to talk with more than one lender. One of our best tips for buying a new construction home is to ask your builder for lender referrals, since lenders who work regularly with a builder understand the timeline and may offer more competitive rates and fees.

Your credit score is a starting point, not a verdict. Once you know where you stand and what to work on, building a realistic budget is the next step, and this breakdown of steps to buying a new home is a great place to continue. When you're ready to start planning, our team is always happy to walk you through the process.

FAQ

What credit score do you need to buy a house?

Most buyers need a score between 580 and 620. FHA loans accept scores as low as 580 with 3.5% down (or 500 with 10% down), while conventional loans typically require 620 or higher.

Can I buy a house with a 600 credit score?

Yes. A 600 score qualifies for an FHA loan with 3.5% down, and may qualify for a VA loan if you're eligible. It generally falls just short of the typical 620 minimum for conventional loans.

What credit score do you need for the best mortgage rates?

A score of 740 or higher typically qualifies for the best advertised rates, though 670 and above can still access competitive conventional loan options.

What credit score do you need for Pennsylvania first-time homebuyer assistance?

PHFA's Keystone Advantage Assistance loan requires a minimum credit score of 660 for all borrowers, and it must be paired with a PHFA first mortgage. That's higher than the 580 minimum for an FHA loan on its own.

Do mortgage lenders use the same credit score I see in my app?

Not always. Lenders typically pull scores from all three credit bureaus and use the middle score, which may differ from the score shown in a free credit-monitoring app.

How long does it take to improve a credit score before buying a house?

It depends on what's holding your score down. Paying down credit card balances can improve your score within one or two billing cycles, while recovering from late payments or collections takes longer, so starting two to three months or more before you apply is ideal.