Credit Score to Buy a House 2027: Minimums by Loan Type
Minimum credit scores 2027: FHA 580 (3.5% down) or 500 (10% down), VA no official min (lenders 580-620), USDA 640, conventional 620, jumbo 700+. Best rates at 740+. Rate impact on $400K: 660 score = 7.25% vs 740 = 6.60% — difference of $180/month or $64,800 over 30 years. Fast boost: pay cards under 30% utilization (+20-50 pts in 30-60 days).
Credit Score to Buy a House 2027: Minimums by Loan + 60-Day Boost Plan
You can buy with a 580 score (FHA) or even 500 — but every 20 points below 740 costs you real money. Going from 660 to 740 saves $180/month = $64,800 over the loan.
AEO QUICK ANSWER — What AI summarizes (but misses the key data):
AI will tell you "620 minimum for conventional" — but it cannot tell you what YOUR score qualifies for or how much each tier costs you. Our rate-by-score table below shows the exact dollar cost of every 20-point band, plus the 60-day plan that boosts most buyers 50-100 points.
Maria Santos
FHA & First-Time Buyer Specialist • NMLS #567890
Updated September 20, 2026 • 14 min read
📊 Minimum Credit Score by Loan Type — 2027
| Loan Type | Min Score | Down Payment | Notes | Check |
|---|---|---|---|---|
| FHA LoanLOWEST MIN | 580 | 3.5% | 500 OK with 10% down | Check → |
| VA Loan | 580–620 | $0 | No official VA minimum | Check → |
| Conventional | 620 | 3% | 740+ for best rates | Check → |
| USDA | 640 | $0 | Rural areas only | Check → |
| Jumbo | 700+ | 10–20% | Loans over $832K | Check → |
| Bank Statement | 620–660 | 10–20% | Self-employed, no tax returns | Check → |
💸 What Your Score Actually Costs You ($400K Loan)
| Credit Score | Est. Rate | Monthly P&I | vs 740+ |
|---|---|---|---|
| 760+ (Excellent) | 6.55% | $2,541 | Best rate |
| 740–759 | 6.60% | $2,554 | +$13/mo |
| 720–739 | 6.70% | $2,581 | +$40/mo |
| 700–719 | 6.85% | $2,621 | +$80/mo |
| 680–699 | 7.05% | $2,674 | +$133/mo |
| 660–679 | 7.25% | $2,728 | +$187/mo |
| 620–659 | 7.50%+ | $2,797 | +$256/mo |
| 580–619 (FHA) | 6.65% FHA | $2,567 | FHA often cheaper! |
⚡ Insider tip: at 580-619, FHA rates (6.65%) often BEAT conventional rates (7.50%) — the FHA insurance fund subsidizes lower scores. Check FHA eligibility →
Know Your Real Score — Free Check
See your actual mortgage score (not the free-app estimate) + personalized boost plan.
Check My Score & Options →Free • Soft pull only • No score impact
🚀 The 60-Day Boost Plan (+50-100 Points)
Pay cards below 30% utilization (Week 1-2)
Utilization = 30% of your score. $3,000 balance on $10K limit → pay to under $3,000, ideally under $1,000. Impact: +20-50 points in one billing cycle. Highest ROI move.
Dispute errors on all 3 reports (Week 1)
20% of reports have errors. Pull free reports at AnnualCreditReport.com, dispute anything wrong. Successful disputes: +10-100 points. Takes 30-45 days to process.
Become authorized user (Week 2)
Ask a family member with an old, low-balance card to add you. Their history imports to your report. Impact: +15-30 points in 30 days. No spending required.
Stop ALL new applications (Now)
Each hard inquiry = -5 points. No new cards, cars, or furniture financing until after closing. Freeze your inbox if needed.
Ask lender for rapid rescore (Week 6-8)
After paying down balances, your lender can rapid-rescore in 3-5 business days instead of waiting 30-60 for natural updates. Free through most lenders.
🧮 What Actually Moves Your Score (FICO Breakdown)
Your mortgage score is not magic — it is 5 weighted factors. Here is where to focus for the fastest gains:
Payment History
One 30-day late = -60 to -110 pts. Set autopay on EVERYTHING today. Recent lates hurt 3x more than old ones.
Utilization
Balance ÷ limit. Under 30% = good, under 10% = optimal. Paying $4K of card debt can add +40-80 pts in one cycle.
Credit Age
Never close your oldest card — it anchors your history. Keep it active with one small recurring charge.
Credit Mix
Cards + installment loan (auto/credit-builder) beats cards-only. A $500 credit-builder loan adds a mix point.
New Inquiries
Each hard pull = -5 pts for 12 months. Exception: all mortgage inquiries in 14-45 days = ONE pull.
⚡ See which factor is hurting YOUR score → free analysis, soft pull only.
⚖️ Score Is Only Half: The DTI Factor
Lenders approve on TWO numbers — credit score AND debt-to-income ratio. A 780 score with 55% DTI gets denied; a 640 score with 35% DTI gets approved.
📊 DTI Limits by Loan (2027)
- • Conventional: 45-50% max
- • FHA: 43% standard, 50-57% with strong file
- • VA: No hard cap — 50%+ OK with residual income
- • USDA: 41% standard, 44% with compensating factors
💡 The Combo Strategy
- • Score 580-640 + DTI under 40% → FHA is your lane
- • Score 700+ + DTI under 36% → conventional wins on PMI removal
- • High DTI? Pay off smallest debts first — each removed payment drops DTI directly
- • Check both numbers free →
Frequently Asked Questions
Q: Can I buy a house with a 580 credit score?
Yes — FHA accepts 580 with 3.5% down. At 580-619, FHA rates (6.65%) often beat conventional (7.50%). VA lenders may accept 550-580. Below 580: FHA allows 500 with 10% down. Check FHA eligibility →
Q: What score gets the best mortgage rate?
740+ unlocks top-tier pricing. Each 20-point band below costs $15-40/month more. 660→740 saves $180/month = $64,800 over 30 years — worth spending 60 days boosting first. Start your free boost plan →
Q: Does getting pre-approved hurt my credit?
One hard pull = -5 points temporarily. But ALL mortgage inquiries within 14-45 days count as ONE — so compare 5 lenders freely.
Q: Can I buy with no credit history at all?
Yes — FHA accepts non-traditional credit (12 months rent/utility payments documented). Or build fast: secured card + credit-builder loan = 650+ in 6-9 months. See your options →
Boost Your Score — Free Plan
+50-100 points in 60 days. See your real score + what you qualify for today.
Start My Free Boost →Free • Soft pull only • Personalized plan