What Credit Score Do You Need to Buy a House in 2026? Minimum by Loan Type
Worried your credit score isn't high enough? Good news: You can buy a house with a 580 score (FHA) or even 500 (with 10% down). But here's the catch: Your score determines your interest rate. A 620 score costs you $100K+ more than a 740 score over 30 years.
⚡ Quick Answer: Minimum Credit Scores
✅ Government Loans (Easier)
- • FHA: 580 (3.5% down) or 500 (10% down)
- • VA: 580-620 (lender dependent)
- • USDA: 640 minimum
📊 Conventional Loans
- • Minimum: 620 score
- • Best rates: 740+ score
- • Jumbo: 700+ required
🎯 Check If You Qualify (Any Credit Score)
Get pre-approved regardless of credit score. Lenders will tell you exactly what loan type and rate you qualify for:
| Loan Type | Minimum Score | Down Payment | Notes |
|---|---|---|---|
| FHA | 580 | 3.5% | Easiest to qualify, PMI required |
| FHA (Low Down) | 500 | 10% | Higher down payment required |
| VA | 580-620 | 0% | Veterans only, no PMI |
| USDA | 640 | 0% | Rural areas only, income limits |
| Conventional | 620 | 3-5% | PMI if <20% down |
| Jumbo | 700+ | 10-20% | Loans above conforming limits |
How Credit Score Affects Your Mortgage Rate
Your credit score is the #1 factor in determining your interest rate. The difference between a 620 score and 740 score can cost you $100,000+ over 30 years.
Rate Impact by Credit Score (2026)
| Credit Score | Typical Rate | Monthly ($400K) | Total Interest |
|---|---|---|---|
| 760-850 | 6.25% | $2,462 | $486,320 |
| 740-759 | 6.375% | $2,495 | $498,200 |
| 720-739 | 6.50% | $2,528 | $510,080 |
| 700-719 | 6.625% | $2,561 | $521,960 |
| 680-699 | 6.875% | $2,627 | $545,720 |
| 660-679 | 7.125% | $2,694 | $569,840 |
| 640-659 | 7.375% | $2,760 | $593,600 |
| 620-639 | 7.625% | $2,827 | $617,720 |
💰 THE COST OF LOW CREDIT:
620 score vs 760 score on $400K loan:
• Monthly difference: $365/month
• 30-year difference: $131,400
This is why improving your credit before buying is SO important.
FHA Loans: Easiest Credit Requirements
FHA loans are the most forgiving for low credit scores. They're backed by the government, so lenders take less risk.
FHA Credit Score Requirements
✅ 580+ Score
- • Down payment: 3.5% minimum
- • DTI: Up to 50%
- • PMI: Required (0.55-0.85%)
- • Loan limits: $524,225-$1,249,125
Example: $400K home = $14K down payment
⚠️ 500-579 Score
- • Down payment: 10% minimum
- • DTI: Up to 43%
- • PMI: Required (0.55-0.85%)
- • Harder to find: Few lenders accept
Example: $400K home = $40K down payment
📐 FHA PROS & CONS:
✅ Pros: Low credit OK, low down payment, high DTI allowed
❌ Cons: PMI for life (unless 10%+ down), loan limits, upfront PMI fee (1.75%)
🎯 Check Your Credit Score & Get Pre-Approved
See what loan type and rate you qualify for based on YOUR credit score. Free pre-approval in 3 minutes:
Get Pre-Approved (Check Your Rate)How to Improve Your Credit Score FAST
If your score is below 620, or you want a better rate, here are 5 proven strategies to boost your score 50-100 points in 3-6 months.
Strategy #1: Pay Down Credit Cards (Biggest Impact)
Credit utilization is 30% of your score. Get balances below 30% (ideally below 10%) for maximum boost.
Example: Credit Card Paydown
Before: High Utilization
- • Card 1: $4,500 balance / $5,000 limit = 90% utilization
- • Card 2: $2,800 balance / $4,000 limit = 70% utilization
- • Total: $7,300 / $9,000 = 81% utilization
- • Credit score: 620
After: Low Utilization
- • Card 1: $1,000 balance / $5,000 limit = 20% utilization
- • Card 2: $800 balance / $4,000 limit = 20% utilization
- • Total: $1,800 / $9,000 = 20% utilization
- • Credit score: 670 (+50 points!)
Paid off $5,500 = 50-point boost in 30 days
Strategy #2: Become Authorized User
Ask a parent or spouse with perfect credit to add you as authorized user on their credit card. Their good history transfers to your report.
✅ REQUIREMENTS:
• Primary cardholder has 740+ score
• Card has 5+ years history
• Utilization below 30%
• Perfect payment history
Result: 20-40 point boost within 30 days (appears on your report immediately)
Strategy #3: Dispute Credit Report Errors
30% of credit reports have errors. Check your report for: late payments that weren't late, wrong balances, accounts not yours, duplicate accounts.
Step 1: Get Free Credit Reports
Visit AnnualCreditReport.com (official site). Get reports from all 3 bureaus (Experian, Equifax, TransUnion). Review line-by-line for errors.
Step 2: Dispute Errors Online
File disputes directly with each bureau. Provide proof (bank statements, payment confirmations). Bureaus have 30 days to investigate and respond.
Step 3: Follow Up
If error is removed, score updates within 30 days. If dispute denied, escalate with CFPB complaint. Common removals: late payments (if error), collections (if paid), duplicate accounts.
Strategy #4: Use Experian Boost (Free)
Experian Boost adds utility, phone, and streaming payments to your credit report. It's free and can boost score 10-20 points instantly.
💡 HOW IT WORKS:
1. Sign up at Experian.com/boost (free)
2. Connect bank account
3. Experian scans for utility/phone/streaming payments
4. Adds positive payment history to Experian report
5. Score updates immediately
Note: Only affects Experian score (not Equifax/TransUnion). But many lenders use Experian.
Strategy #5: Pay All Bills On Time (6 Months)
Payment history is 35% of your score. Six months of perfect payments can boost score 20-30 points.
6-Month Perfect Payment Plan
- Set up autopay for ALL bills (credit cards, utilities, phone, rent)
- Pay credit cards in full each month (or at least minimum)
- Never miss a payment (even $10 late payment = -30 points)
- Keep utilization below 30% every month
- Don't apply for new credit (hard inquiries = -5 points each)
Result after 6 months: 20-30 point boost + clean payment history for mortgage approval
What If I Have No Credit Score?
No credit score (credit invisible) doesn't mean you can't buy a house. You need manual underwriting.
Manual Underwriting Requirements
- 12 months rent payments (on time, verified by landlord)
- 12 months utility bills (electric, water, gas - all on time)
- Employment history (2+ years same employer or field)
- Bank statements (3-6 months, showing reserves)
- No collections or judgments (clean public records)
📐 WHICH LOANS ALLOW MANUAL UNDERWRITING:
✅ FHA: Yes (common for no credit)
✅ VA: Yes (veterans with no credit)
⚠️ Conventional: Rare (most require credit score)
❌ USDA: No (requires 640 score)
Does Checking Credit Hurt Your Score?
No! Checking your own credit is a soft inquiry (no impact). However, mortgage applications are hard inquiries (-5 points temporarily).
Rate Shopping Window
✅ GOOD NEWS:
Multiple mortgage applications within 14-45 days count as ONE inquiry.
This means you can shop rates with 5-10 lenders and only get dinged once. Apply with all lenders within 2 weeks for maximum protection.
🎯 Ready to Buy a House? Check Your Credit & Get Pre-Approved
See what loan type and rate you qualify for based on YOUR credit score. Get pre-approved in 3 minutes:
Frequently Asked Questions
Can I buy a house with a 600 credit score?
Yes! FHA loans accept 580+ scores. VA loans accept 600+ (most lenders). Conventional loans require 620 minimum. With 600 score, expect 7-7.5% rate (vs 6.25% for 760+ score). Consider improving credit first if possible - every 20 points = ~0.125% lower rate.
How long does it take to build credit from scratch?
6-12 months to build credit from zero. Strategy: Get secured credit card ($200-500 deposit), use it monthly, pay in full. After 6 months, you'll have a score (usually 650-700). After 12 months, you can qualify for FHA/VA loans. Faster option: Become authorized user on parent's card (instant credit history).
What if I have a bankruptcy or foreclosure?
Waiting periods apply: FHA: 2 years after bankruptcy, 3 years after foreclosure. VA: 2 years after bankruptcy/foreclosure. Conventional: 4 years after bankruptcy, 7 years after foreclosure. During waiting period, rebuild credit to 620+ for best approval odds.
Should I pay off collections before applying?
Depends on loan type. FHA/VA: Collections under $2,000 usually OK (don't need to pay). Conventional: Must pay all collections before closing. Paying collection doesn't remove it from report (stays 7 years), but shows as "paid" which helps approval odds.
Can I get a mortgage with student loans in default?
Very difficult. Defaulted student loans = major red flag. Options: 1) Rehabilitate loans (9 on-time payments removes default), 2) Consolidate loans (creates new loan, removes default), 3) Get loans out of default status. Once rehabilitated, you can qualify for FHA/VA loans.
Meet Sarah
Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.
EXPERTISE:
KEY ACHIEVEMENT:
Helped 2,500+ veterans secure home loans