What Credit Score Do You Need to Buy a House?

How credit scores work in mortgage lending

Mortgage lenders use the classic FICO score versions built for mortgages: FICO Score 2 from Experian, FICO Score 4 from TransUnion, and FICO Score 5 from Equifax. The score you see in a free app or a credit card statement is often a different version, like FICO 8 or a VantageScore, so it can look different from the score a lender actually pulls. That is normal, and it is one reason the number in your app is a rough guide, not the final word.

Why lenders look at the middle score

Lenders pull scores from all three credit bureaus and typically use the middle of the three as the qualifying score, not the highest, the lowest, or an average. If two borrowers are on the loan, both credit profiles are part of the picture. The CFPB explains how your credit score affects your mortgage and the rate you pay, and Freddie Mac's guide to understanding your credit walks through how credit history feeds into mortgage eligibility.

Typical score ranges by program, not universal cutoffs

Each loan program has a typical score range, and none of them is a universal cutoff that applies to every lender in every situation. Lenders and programs vary, and the only way to know your options is to run your actual numbers. With that said, here is what borrowers usually hear about the four mainstream programs:

Conventional loans

Most lenders look for a score around 620 or higher on conventional loans, the Fannie Mae and Freddie Mac programs. Fannie Mae's automated underwriting no longer applies a hard score floor, so a strong file with compensating factors can sometimes qualify below that, but 620 remains the common practical starting point. Fannie Mae's Selling Guide spells out the general requirements for credit scores, and lender requirements still vary on top of it.

FHA loans

FHA is the most score-friendly mainstream program. HUD's published minimum decision credit score is 500: borrowers at 580 or higher are eligible for the 3.5% down option, and borrowers from 500 to 579 are typically limited to a 90% loan-to-value, meaning about 10% down. HUD lays this out in its Mortgagee Letter on minimum decision credit scores. FHA mortgage insurance applies on top, regardless of the score.

VA loans

The VA does not set a minimum credit score. Individual lenders set their own requirements, and in practice many look for something in the 580 to 620 range. The VA's own guidance says it does not require a minimum credit score, so the real answer for a veteran or service member depends on the lender and the rest of the file.

USDA loans

USDA does not publish a hard minimum for its guaranteed loan program, but its automated underwriting system generally looks for a score around 640 for a streamlined approval. Below that, the file typically goes through more manual review with extra documentation. USDA's credit requirements for its direct loan programs show how scores factor into the review.

Notice the pattern: these are typical ranges, not promises. A score below a program's typical range does not automatically close the door, and a score above it does not guarantee approval. The rest of the file, income, debts, down payment, and the property itself all matter.

Your score affects more than approval

Rate tiers

Lenders price loans in tiers, and higher scores generally land in better tiers. The same loan at a slightly better rate can save real money over 30 years, so the score matters beyond the yes-or-no of approval. The CFPB's answer on credit scores and mortgage rates makes the connection directly: your score and report help determine both whether you get a mortgage and what rate you pay.

Mortgage insurance

Mortgage insurance is mostly driven by the program and the down payment, but the score shapes how it is priced. On a conventional loan with less than 20% down, private mortgage insurance is typically required, and the premium can vary with the credit profile. On an FHA loan, mortgage insurance applies to nearly every loan regardless of the score. On a VA loan, a funding fee takes the place of mortgage insurance. So your score influences the insurance line on your payment, but it is not the only thing that sets it.

Three score ranges, one illustrative example

Numbers are easier to feel with an example. Below, three illustrative score ranges show how a borrower might experience rate pricing and mortgage insurance treatment. Every rate here is for example only, not a quote and not a current offer. Actual rates depend on the full picture: program, down payment, loan amount, property type, occupancy, and the market on the day you lock. Your rate is set at application.

What to do if your score is lower than you want

A lower score is a starting point, not a verdict. Here is the order Kladi suggests:

Check your reports for errors

Errors on credit reports are more common than people expect, and they pull scores down for no real reason. You can pull your reports free every week from the three bureaus through AnnualCreditReport.com, and the CFPB explains how to dispute an error step by step. Fixing a mistake can move your score more than any other single step.

Pay down revolving balances

Credit card utilization, the share of your limits you are using, is one of the biggest levers you control. Paying balances down, especially below 30% of a card's limit, often improves scores within a billing cycle or two. You do not need to carry a balance to build credit; paying in full every month works fine.

Avoid new credit before you apply

Hold off on new cards, auto loans, or other financing in the months before a mortgage application. New inquiries and new balances can nudge your score down and change your debt picture right when lenders are looking at it. If you are rate shopping for a mortgage itself, know that multiple mortgage inquiries within a short window are typically treated as one.

Talk to a loan officer about your actual situation

Programs like FHA exist for borrowers with lower scores, and some lenders can work with non-traditional credit histories. Guessing from a blog post will not tell you which door is open; a short conversation with Kladi will, because he can look at your actual numbers and the state your property is in.

Why you should not wait indefinitely

It is tempting to say "I will buy when my score is perfect," but a good score is one factor, not the whole picture. While you wait for a perfect score, home prices and rents can move, and you keep paying someone else's mortgage. The realistic goal is not the highest possible score; it is the score that opens the door to a loan that fits your budget, which is often closer than you think.

You can also improve your score while you shop. A preapproval tells you exactly where you stand today, and the steps above can improve your position while you look. The guide on prequalified vs preapproved explains the difference and when you need each one.

Key takeaways

• There is no single magic number: each program has a typical score range, and lenders and programs vary.
• Your score affects more than approval: it influences your rate tier and how mortgage insurance is priced.
• Lenders use the middle of your three classic FICO scores, which can differ from the score in a free app.
• A lower score does not rule you out: FHA, VA, and other options exist, and fixing report errors or paying down balances can widen your options.

Frequently asked questions

Does checking my credit score hurt it?

No. Checking your own credit is a soft inquiry and does not affect your score. The CFPB confirms that requesting your credit report does not hurt your score, so check your reports and scores freely before you apply.

Can I buy a home with no credit history?

It is possible, but the path depends on the program and the lender. FHA, for example, allows lenders to establish a credit history from non-traditional sources like rent and utility payments when there is no traditional score, and some lenders have their own programs for borrowers without scores. This is exactly the situation to talk through with a loan officer, because the right answer depends on your actual history and the state your property is in.

Why is the score I see different from the score lenders use?

The score in a free app is usually a consumer version like FICO 8 or a VantageScore. Mortgage lenders use the classic mortgage versions, FICO Score 2, 4, and 5, and take the middle of the three. Different versions weigh the same report slightly differently, which is why your app can say one number while a lender sees another. The CFPB's explanation of what a credit score is covers how scores are built and why they vary.

Primary sources

• CFPB: Does my credit score affect my ability to get a mortgage loan or the mortgage rate I pay?
• CFPB: What is a credit score?
• CFPB: Does requesting my credit report hurt my credit score?
• CFPB: How do I dispute an error on my credit report?
• Fannie Mae Selling Guide: General Requirements for Credit Scores
• Freddie Mac: Understanding your credit
• FHA / HUD: Mortgagee Letter 2010-29, Minimum Decision Credit Scores
• VA: Home loan entitlement and limits (no minimum credit score set by the VA)
• USDA Rural Development: Credit requirements