Minimum Credit Scores by Mortgage Type

There is no single universal minimum credit score to buy a house — it varies depending on the type of mortgage loan you apply for. Here is a breakdown of the most common loan types and their general minimum credit score requirements:

Conventional Loans

Conventional mortgages are not backed by a government agency. Most lenders require a minimum credit score of 620 for a conventional loan, though some will go as low as 580 in certain cases. To get the best rates and avoid private mortgage insurance (PMI) with less than 20% down, a score of 740 or higher is strongly recommended.

FHA Loans

FHA loans are backed by the Federal Housing Administration and are popular with first-time buyers. They have more lenient credit requirements:

  • 580 or higher: Eligible for 3.5% down payment
  • 500–579: May qualify with 10% down payment

FHA loans require mortgage insurance premiums (MIP) regardless of your down payment amount, which adds to your monthly cost.

VA Loans

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. The VA itself does not set a minimum credit score, but most lenders require at least a 580–620. VA loans offer significant benefits: no down payment requirement and no private mortgage insurance.

USDA Loans

USDA loans are designed for rural and some suburban properties and require no down payment. Most lenders look for a score of at least 640, though manual underwriting may be available with lower scores in some cases.

How Your Credit Score Affects Your Mortgage Rate

Meeting the minimum threshold to qualify is just the first hurdle. Your credit score has a direct and significant impact on your interest rate — and that rate determines how much you pay over the entire life of the loan.

Consider a $300,000 30-year mortgage at varying credit scores (rates are illustrative and will vary by market conditions):

  • 760–850: ~6.5% rate → approximately $1,896/month
  • 700–759: ~6.7% rate → approximately $1,934/month
  • 680–699: ~6.9% rate → approximately $1,974/month
  • 660–679: ~7.1% rate → approximately $2,013/month
  • 640–659: ~7.5% rate → approximately $2,097/month
  • 620–639: ~8.0% rate → approximately $2,201/month

The difference between a 760 score and a 620 score on that loan is roughly $305 per month — or more than $109,000 over the life of the loan. That is the real cost of a lower credit score.

What Is the Ideal Credit Score to Get the Best Mortgage Rate?

Most lenders offer their best rates to borrowers with scores of 740 or higher. Some lenders tier pricing at 760 or even 780 for their absolute best terms. If your score is above 740, you are generally well-positioned to shop aggressively for the best rate among multiple lenders.

Other Credit-Related Factors Lenders Consider

Your credit score is not the only thing a mortgage lender examines. They also look at:

  • Debt-to-income ratio (DTI): Your total monthly debt payments divided by your gross monthly income. Most lenders want a DTI below 43%, with lower being better.
  • Credit history length: Longer histories with well-managed accounts are viewed favorably.
  • Recent derogatory marks: Bankruptcies, foreclosures, or recent late payments can disqualify you even with an otherwise acceptable score.
  • Employment and income stability: Most lenders want 2 years of consistent employment history.

What to Do If Your Score Is Below the Threshold

If your current score isn't where it needs to be, here is a practical action plan:

  1. Pull your credit reports: Check all three bureaus for errors and dispute any inaccuracies.
  2. Pay down credit card balances: Getting utilization below 30% can raise your score meaningfully within 1–2 billing cycles.
  3. Avoid new credit applications: Hard inquiries lower your score temporarily.
  4. Never miss a payment: Set up autopay for at least the minimum on all accounts.
  5. Wait and let time work: Sometimes the best strategy is 6–12 months of clean behavior before applying.

Should You Buy Now or Wait to Improve Your Score?

This depends on your specific numbers and the housing market in your area. If improving your score by 40–60 points saves you $150–$300 per month in mortgage payments, waiting 6–12 months to improve your credit may be well worth it. Run the numbers for your situation before committing.

If you are already at 740+ and your other financial metrics are solid, there is little benefit to waiting further — you are already in the premium tier.

Final Thoughts

A score of 620 is typically the minimum to buy a house, but 740 is where you unlock the best rates. Focus on bringing your score above 740 before applying for a mortgage, reduce your debt-to-income ratio, and shop multiple lenders to find the best deal. The preparation pays off in hundreds of thousands of dollars over the life of your loan.

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 scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans typically require 620+. VA loans vary by lender but often start around 580–620. For the best mortgage rates, aim for 740 or higher.

Can I buy a house with a 600 credit score?

Yes, it is possible. An FHA loan may be available with a 600 credit score, particularly with a 10% down payment. However, your interest rate will be higher than for borrowers with stronger scores, which significantly increases the total cost of the loan over time.

How much does a higher credit score save you on a mortgage?

The savings are substantial. On a $300,000 30-year mortgage, the difference between a 620 score and a 760 score can be $200–$300+ per month in interest, which translates to $70,000–$100,000 or more over the full loan term. Improving your score before applying is one of the highest-value financial moves you can make.