What Is a Good Credit Score to Buy a House in the US? (2026 Guide)
If you’re planning to buy a home in the United States, your credit score is one of the single most important numbers you’ll need to know. It determines whether you qualify for a mortgage, what interest rate you’ll be offered, and — over the life of a 30-year loan — can mean the difference between tens of thousands of dollars saved or spent.
So what credit score do you actually need? The honest answer: it depends on the loan type, your lender, your down payment, and several other financial factors. But there are clear benchmarks you can use to understand exactly where you stand — and what to aim for.
What Credit Score Is Considered "Good" to Buy a House?
Credit scores in the US are measured on a scale of 300 to 850, most commonly using the FICO Score model. Lenders use your score to assess the risk of lending to you. Here’s how the standard ranges break down:
FICO Credit Score Ranges — What They Mean for Homebuyers
For most homebuyers, a score of 670 or above is considered good enough to access conventional mortgage products at reasonable rates. A score of 740 or above is where you begin to unlock the most competitive interest rates from mainstream lenders. And a score of 760+ puts you firmly in the best-rate tier — a threshold that can save you enormous sums over a long loan term.
That said, scores below 670 don’t necessarily mean homeownership is out of reach. Government-backed loan programs exist precisely to help buyers with lower scores — it’s just important to understand the trade-offs.
Minimum Credit Scores by Loan Type
Different mortgage programs have significantly different credit score requirements. Understanding your options is the first step in figuring out which path to homeownership makes the most sense for you.
| Loan Type | Minimum Score | Down Payment | Key Consideration | Best For |
|---|---|---|---|---|
| Conventional Loan | 620+ (lender) | 3% – 20% | PMI required below 20% down; no official federal floor since Nov 2025 | Buyers with good–excellent credit |
| FHA Loan | 580 (3.5% down) | |||
| 500 (10% down) | 3.5% or 10% | MIP (mortgage insurance) for life of loan if <10% down | First-time buyers, lower scores | |
| VA Loan | No official min. | |||
| (620 typical) | 0% | Only for eligible veterans and active military; no PMI | Military service members & veterans | |
| USDA Loan | 640+ recommended | 0% | Property must be in eligible rural or suburban area | Rural property buyers |
| Jumbo Loan | 700+ typically | 10% – 20%+ | Loans above $806,500 (2025 conforming limit); stricter underwriting | High-value property buyers |
💡 Key Update — November 2025
Fannie Mae and Freddie Mac eliminated the official minimum credit score threshold for conforming conventional loans in November 2025. Loan decisions are now based on a holistic review of credit risk factors. However, the vast majority of lenders still maintain their own internal minimums — typically 620 or higher — so 620 remains the practical benchmark for most conventional loan applicants.
How Your Credit Score Affects Your Mortgage Rate
Qualifying for a mortgage is only part of the equation. The interest rate you’re offered — which compounds over 15 or 30 years — is where your credit score has the most dramatic financial impact.
These figures make clear that a higher credit score is not just about qualifying — it’s about the total cost of the loan over its lifetime. On a $400,000 home, the difference between entering the market with a 620 score versus a 760+ score can exceed $74,000 in total interest paid, according to FICO data. That is a significant sum that illustrates exactly why improving your score before applying — even by 40 or 50 points — is almost always worth the effort and the wait.
What the Typical Homebuyer Looks Like in 2026
The credit score landscape for home purchases has shifted noticeably in recent years. Elevated home prices and higher interest rates have priced out many lower-credit borrowers, pushing the median FICO score for purchase loans to a record high of 768 as of May 2025, according to Optimal Blue data. The current average APR on a $350,000 30-year fixed conventional loan for a borrower with a 740 score was around 6.9% as of mid-2025.
This doesn’t mean a score below 768 prevents you from buying — far from it. It simply reflects market conditions: buyers who are still entering the market at current prices tend to be those with stronger credit profiles. First-time buyers and those using FHA loans are still active, but often face more competition and scrutiny in today’s environment.
⚠️ Keep in Mind
Most mortgage lenders use FICO Score versions 2, 4, and 5 — older models used specifically for mortgage underwriting. These may differ from the FICO Score 8 you see on credit monitoring apps. The score your lender pulls could be different from what you see online. Always request your mortgage-specific score from a lender before assuming your current figure is accurate for home loan purposes.
Mortgage Calculator
Once you know your credit score tier and expected interest rate, use our free Mortgage Calculator to estimate your monthly payment, total interest and full amortisation schedule for any loan amount and term.
How to Improve Your Credit Score Before Applying
If your score isn’t quite where you need it to be, the good news is that credit scores are not fixed. Targeted, consistent action over 6 to 12 months can meaningfully raise your score — and even a 30 to 40 point improvement can move you into a significantly better rate tier.
1. Check Your Credit Reports for Errors
You are entitled to a free annual credit report from each of the three major bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Errors — incorrect balances, accounts that aren't yours, late payments wrongly recorded — are more common than most people expect. Disputing and correcting errors can produce fast, significant score improvements at no cost.
2. Pay Down Credit Card Balances
Your credit utilisation ratio — how much of your available revolving credit you are using — accounts for roughly 30% of your FICO score. Aim to bring utilisation below 30% on each card, and ideally below 10% for maximum score impact. Paying down balances is typically the fastest lever available to improve your score.
3. Make Every Payment On Time
Payment history is the single largest factor in your FICO score, accounting for approximately 35%. Even one missed payment can meaningfully lower your score and stay on your record for up to seven years. Set up automatic minimum payments to ensure nothing slips — then pay more when you can.
4. Avoid Opening New Credit Accounts
Each new credit application creates a hard inquiry, which can temporarily lower your score by a few points. More importantly, new accounts reduce your average account age — a meaningful factor. In the 12 months before applying for a mortgage, avoid opening new credit cards, car loans, or other credit accounts unless absolutely necessary.
5. Keep Old Accounts Open
The length of your credit history matters. Even if you no longer actively use an older credit card, keeping the account open maintains your average account age and contributes positively to your available credit. Closing old accounts can inadvertently raise your utilisation ratio and shorten your credit history simultaneously.
6. Diversify Your Credit Mix (Gradually)
Having a healthy mix of credit types — revolving credit (cards) and installment loans (auto, student loans) — contributes to your score. However, do not take out loans purely to improve your mix. This is a secondary factor, and the potential credit inquiry and new account risks typically outweigh the benefit when you are close to a mortgage application.
💡 How Long Does It Take?
Small improvements (10–20 points) can happen within 30–60 days by reducing utilisation. Moving from Fair to Good (580 → 670+) typically takes 6–12 months of consistent on-time payments and balance reduction. Moving from Good to Exceptional (670 → 760+) may require 12–24 months. Start early — plan your mortgage application timeline around your credit improvement goals, not the other way around.
Use Our Calculators to Plan Your Home Purchase
Knowing your credit score is just the first step. Once you have an idea of the mortgage rate you might qualify for, the next step is running the numbers to understand what you can actually afford — monthly payment, total interest, and long-term cost.
Mobile Home Mortgage Calculator
Enter your home price, down payment, interest rate, and loan term to see your monthly payment, total interest paid, and a complete year-by-year amortisation schedule. Compare different rate scenarios side by side.Frequently Asked Questions
Can I buy a house with a 580 credit score?
Yes — with an FHA loan, a 580 credit score qualifies you for a 3.5% down payment. With a score between 500 and 579, you may still qualify for an FHA loan but will need a 10% down payment. Note that FHA loans require mortgage insurance premiums (MIP) for the life of the loan if you put down less than 10%, which adds to your monthly cost.
Does a higher credit score always mean a lower mortgage rate?
Generally, yes. Credit score is one of the primary factors lenders use to price mortgage risk. A higher score signals lower default risk and typically results in a lower interest rate offer. However, your rate is also influenced by your down payment size, debt-to-income ratio, loan type, loan term, and current market conditions. A high credit score does not guarantee the lowest possible rate if other financial factors are unfavourable.
What is the credit score the lender actually uses for my mortgage?
Most mortgage lenders use FICO Score versions 2 (Experian), 4 (TransUnion), and 5 (Equifax) — older, mortgage-specific versions of the FICO model. These can differ from the FICO Score 8 or VantageScore you may see on credit monitoring services. When you apply for a mortgage, the lender pulls all three bureau scores and typically uses the middle score (or the lower of two middle scores for joint applications) to make their decision.
What credit score do I need for a conventional loan?
As of November 2025, Fannie Mae and Freddie Mac removed the official minimum credit score requirement for conforming conventional loans. However, most individual lenders still maintain internal minimums of 620 or higher. A score of 670+ gives you access to most conventional loan products, and 740+ unlocks the best interest rates.
How quickly can I raise my credit score to buy a house?
Timeline depends on your starting point and what's dragging your score down. Paying down high credit card balances can show improvement within 30–60 days. Building a consistent on-time payment history takes longer — typically 6 to 12 months for meaningful movement. If your score is held back by past delinquencies or collections, recovery may take 12 to 24 months or more. The key is starting as early as possible.
Disclaimer: The information in this article is for educational purposes only and does not constitute financial, mortgage, or legal advice. Credit score requirements and mortgage rates change frequently. Always consult a licensed mortgage professional or financial advisor before making home purchase decisions. Rate examples are illustrative; actual rates depend on your full financial profile, lender, and market conditions at the time of application.