What’s the Minimum Credit Score to Buy a House?

What is a credit score?

Basically, it’s a number that sums up your financial history, showing everything from the first time you opened a checking account to any late bills you’ve paid along the way. Think of it as a snapshot of how you handle money and credit, highlighting your ability to manage and maintain credit effectively or revealing areas where you might have struggled.”

There are three major credit bureaus, namely Experian, TransUnion, and Equifax, which track and report your credit information. Each bureau collects data from different sources, so your score can look a little different depending on which bureau you check. Not every lender reports to all three, which means a negative mark might show up on one but not the others.

To deal with these differences, lenders usually look at your FICO score, which was created by the Fair Isaac Corporation. The FICO score pulls information from all three bureaus and gives a single, standardized number, making it easier to get a clear picture of your credit. This way, lenders can make smarter decisions when they’re checking out your loan or credit applications.

Joe Tafolla, a top-rated mortgage broker in the Seattle area, tells buyers,  “Credit scores are important to lenders because they are directly correlated with the likelihood of the buyer being able to follow through with the commitment of repayment.”

If you’re hoping to buy a house but your credit score isn’t great, knowing how to boost it is key. Some things affect your score more than others, so it helps to know what really matters. By focusing on the areas that make the biggest impact, you can improve your score faster and smarter.

What factors affect your credit score?

According to FICO, your payment history makes up 35% of your score, so a late cable payment really does leave a mark. The best thing you can do now is plan to pay everything on time.

Amounts owed are the next-biggest factor. Representing 30% of your score, it looks at how much debt you have compared to your total available credit, also known as your credit utilization. High balances relative to your limits can signal risk to lenders and lower your score. Keeping your credit card balances low and paying down debt strategically can have a big impact on improving your score.

“Some people may have perfect payment history but have maxed out their cards, and thus the credit score is suffering,” Tafolla says. “Those are the scores that are easy to fix. Once the balances are paid down, the scores pop up quickly.” Credit use could be your biggest negative, and paying down balances could give your score the boost it needs.

The length of your credit history accounts for 15% of your score, and it’s something you can’t alter. Generally, the longer you’ve had open accounts, the better your score. While you can’t go back and open accounts from earlier in life, it’s important to keep your older accounts open. Closing them can negatively affect your score, especially if they are removed from your credit report.

The mix of credit types you have makes up 10% of your score. Lenders view different types of credit differently: A credit card, which typically is unsecured, is treated differently from an auto loan, which is backed by physical property. Having too much unsecured debt can lower your score, but having no debt at all can also negatively affect it. Balancing various types of credit is key to maintaining a healthy score.

Lenders want to see how you manage debt, so relying solely on cash for purchases might result in a lower credit score. It might seem counterintuitive, but opening a credit card, making charges, and then paying off the balance can actually improve your credit standing.

The last 10% of your FICO score consists of new inquiries. Every time you apply for a new credit card or auto loan, it shows on your report as a credit inquiry. Why? Because if you’ve been running around town opening up new accounts, it tells lenders that you might be having money issues. It’s a red flag for them, which is why you should avoid buying a new car or applying for a new card when you’re also home shopping. 

How does your credit score stack up?

It’s tough to pinpoint the exact credit score that might kick you out of the running for a mortgage, since lenders consider income, debts, savings, and overall financial stability. There aren’t official minimums for VA or USDA loans, but lenders usually have their own cutoff scores and might not accept applications from anyone below a certain level.

You’ll need a score above 500 to get approved for an FHA loan with 10% down. If you only have a 3.5% down payment, your score should be 580 or higher. This is also the minimum score recommended when applying for a VA loan.

Most conventional loans require a minimum credit score of 620, while a score above 640 is recommended for USDA loans. These minimums can be flexible. For example, a larger down payment might improve your chances even with a lower score. However, a lower credit score usually means you’ll face higher interest rates, making your loan more expensive even if you’re approved.

In summary, not all loans are created equal, and each type has its own credit score expectations. Understanding these differences can help you plan, qualify, and avoid surprises when applying. Here’s a breakdown of common loan types and the typical minimum credit scores lenders look for:

What mortgage lenders look at beyond your credit score

Knowing the minimum credit score for different loan types is just the starting point. Lenders evaluate your entire financial picture before approving a mortgage. Even if your score meets the basic requirements, other factors can make or break your application.

Even with a borderline credit score, these additional factors can tip the scales in your favor. Understanding and strengthening them gives you a better chance to secure the loan that fits your goals.

»Learn more: Your perfect home starts with knowing what you can afford. Try our Home Affordability Calculator to map out your options in minutes.

What’s an “average” credit score for first-time buyers?

If you’re curious about how your score compares to others and whether it meets or exceeds the minimum credit score to buy a house in your area, we’ve got the answers you need.

Experian reports that the average credit score in the US is about 713, which falls into the “good” range for mortgage lenders. Most lenders consider any FICO score above 680 to be favorable for buying a house.

The variation in credit scores among first-time buyers can be attributed to differences in home prices across regions. For example, in areas where first-time home prices are significantly higher, buyers often need a stronger financial profile, which is reflected in their credit scores. This regional disparity helps explain why the average credit score can vary based on local real estate markets.

How to boost your credit for a better mortgage

With a large enough down payment, you might still land a mortgage even with less-than-perfect credit. However, Simpkins points out that banks might require you to put down 20% to 25% to reduce their risk. Sometimes, it might be smarter to wait and save more, since you’ll be stuck with that high interest rate for 30 years unless you refinance.

Improving your credit can help you get a better deal, so consider spending a few months to a year boosting your score before you start house hunting. As Tafolla notes, “great, good, and poor credit come in all shapes and sizes.” Depending on why your credit score is low, fixing it might be simpler than you think.

Talk to a licensed loan officer about your options for a home loan with your current credit score, and how they could expand if your score improves. They might be willing to offer advice and help you improve your score to gain your business. 

Simpkins found a lender willing to work with one of his clients who had a credit score “somewhere in the range of about 590. We got their credit score all the way to about a 670 literally in a matter of three weeks by paying off a couple of small debts that were well below $500.”

Unlock better mortgage options

For many prospective homebuyers, the minimum credit score feels like an invisible gatekeeper, standing between them and the home of their dreams. You check your numbers, compare them to guidelines, and wonder if you’re “good enough” to compete in today’s market. It’s frustrating when the rules seem murky, and every lender has slightly different expectations. 

But the truth is, your score is just one piece of the puzzle. Income, debt, savings, and timing all play a role in whether your offer gets accepted. Navigating these complexities alone can leave even the most organized buyer feeling overwhelmed and second-guessing every decision. 

Partnering with an experienced agent gives you clarity, confidence, and strategy, turning that uncertainty into a path toward the home you’ve been waiting for. Use HomeLight’s Agent Match tool to connect with top-performing professionals in your area.

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