Credit Score Needed to Buy a House in 2026: What Lenders Actually Look For

A good credit score to buy a house refers to a FICO score high enough to get approved and priced well on a mortgage. For most buyers that means 620 or higher for conventional loans, 580 for FHA, and 740 or higher for the best rates.

This guide covers purchase loans for a primary home in the U.S. It does NOT cover investment properties, refinances, or jumbo loans. It works best for first-time buyers with scores between 580 and 740, and it won’t help if you have a recent bankruptcy or foreclosure that needs its own timeline. This is general education, not financial advice, so confirm your numbers with a licensed loan officer.

What Credit Score Do You Need to Buy a House?

Short answer: 620 is the number most lenders still treat as the starting line for a conventional loan, 580 opens the door to an FHA loan with 3.5% down, and 740 or higher usually earns the best pricing. Those three numbers explain nearly every conflicting figure you’ll find online.

Approval is one gate. Price is another.

You’ve probably checked your score already, and it isn’t the number you’d hoped for. For context, the average FICO Score in the U.S. is 714, according to FICO’s fall 2026 report, flat from October 2025 to April 2026 and down one point year over year. So a score in the 600s sits below average but nowhere near unfinanceable.

The minimum credit score to buy a house depends on the loan program. According to HUD’s FHA guidelines, borrowers with a score of 580 or higher can finance up to 96.5% of the home’s value, meaning 3.5% down. Scores from 500 to 579 can still qualify, but the buyer must put down at least 10%.

A credit score of 740 or higher generally gets the best mortgage rates. According to Fannie Mae and Freddie Mac pricing grids, loan fees step up as scores fall through bands like 720, 700, 680 and 660. A lower score rarely blocks approval outright. It mostly raises the price you pay every month.

What Is the Minimum Credit Score by Loan Type?

Each program sets its own floor. Here’s the quick view before the fine print.

Quick Comparison

FHA Loans

HUD’s FHA rules set a floor of 500 for approval. At 580 or higher, you can put down as little as 3.5%. Between 500 and 579, the minimum down payment rises to 10%, and finding a lender willing to write the loan gets much harder.

I’ve seen conflicting data, some sources say FHA lenders accept a 580, others say most won’t go below 620. My read is both are true. HUD sets the floor, but each lender sets its own, and 620 is common.

Conventional Loans

Fannie Mae no longer requires a 620 minimum credit score in Desktop Underwriter for new loan files created on or after November 16, 2025. According to Fannie Mae’s Selling Guide update, DU now assesses eligibility through its internal risk analysis rather than a fixed score threshold. Lenders and mortgage insurers can still set their own minimums.

Most people assume a score under 620 ends the conversation for a conventional loan. For Fannie-backed files, that’s no longer a hard rule. Early lender reports in the first week after the change put sub-620 approvals at roughly 6% of application volume, though that figure is anecdotal and varies by lender.

There’s a catch. Even when Fannie’s system accepts a loan, the private mortgage insurer may require its own minimum score, and with under 20% down you’ll need that insurance. A DU approval at 590 doesn’t guarantee an insurer will say yes.

FHA vs conventional: FHA is better suited for buyers with scores of 580 to 679 because it accepts lower scores and smaller down payments. Conventional works better when your score is 700 or higher, since mortgage insurance costs less and can be cancelled. The key difference is how much your score changes your monthly cost.

VA and USDA Loans

VA loans carry no official minimum score from the VA itself, but most lenders look for 580 to 620 or higher. USDA loans, for homes in eligible rural and some suburban areas, usually need around 640 for smooth automated approval. Both skip the down payment, which makes them worth checking if you qualify.

How Much Does Your Credit Score Change Your Mortgage Payment?

Price is where your score bites. Take a $350,000 loan on a 30-year fixed mortgage and picture four rates a lender might offer across different score tiers. These are hypothetical, chosen to show the gap, not today’s quotes.

6.0% rate: about $2,098 a month

6.5% rate: about $2,212 a month

7.0% rate: about $2,329 a month

7.5% rate: about $2,447 a month

Between the 6.0% and 7.0% lines, the payment jumps about $230 a month, which adds up to roughly $83,000 over 30 years. Same house. Same loan amount.

Past the minimums, your score works less like a gate and more like a price tag. Or maybe I should say it this way: every tier you climb takes a slice off a bill you’ll pay for decades.

My opinion, and some readers will push back: waiting for a 760 or higher usually isn’t worth it. Most of the pricing gains come before you reach 740, so that’s where improving pays off fastest. Some mortgage insurers price finer tiers above that, but the savings are small next to climbing from 640 to 700.

Why Does Your Credit Score Look Different in Every App?

Here’s the thing: the free score on your phone probably isn’t the one your lender pulls. Many free apps show a VantageScore or a newer FICO version, while mortgage lenders have long relied on older “Classic FICO” models from each bureau.

What most guides skip is the tri-merge rule. Your lender pulls reports from Equifax, Experian and TransUnion, then uses the middle of the three scores. Not the highest. The middle.

That’s starting to change. In April 2026, FHFA and HUD announced that Fannie Mae and Freddie Mac would accept VantageScore 4.0, and that FHA would permit it as well. It began as a limited rollout and has since opened to all approved lenders, who may choose between Classic FICO and VantageScore 4.0. FICO Score 10T isn’t yet eligible for delivery. The newer models can also factor in on-time rent history, which may help thin-file buyers. So ask your loan officer which model they’ll run.

How Can You Qualify for a Mortgage With a Lower Credit Score?

Some experts argue you should wait until you reach 700 or higher before applying. That’s valid when your rent is manageable and a few months of work would lift you into a cheaper tier. But if you’re at 620 to 660 with steady income and a decent down payment, waiting can cost you real money too.

Look, if you’re sitting at 600 and want to buy within a year, here’s what actually works. Start with the basics below, because they move scores faster than any trick.

To raise your score before applying for a mortgage, follow these steps:

1. Pull your free reports at AnnualCreditReport.com and dispute errors.
2. Pay every bill on time, starting today.
3. Bring card balances below 30% of each limit.
4. Keep old accounts open and skip new credit applications.
5. Ask your lender about a rapid rescore once balances drop.

Buyers who’ve tried paying down cards right before applying often report that the new score doesn’t appear until balances post to the bureaus. That’s why the rapid rescore question matters.

Other levers don’t depend on your score at all:

• A larger down payment, which lowers the lender’s risk
• A lower debt-to-income ratio, by paying off a car loan or card first
• State housing finance agency programs, which often add down payment help but set their own score floors
• A lender that offers manual underwriting for thin or no-score files
• A co-borrower with strong income and a clean file, though lenders typically weigh both borrowers’ scores, so it doesn’t always help

Quick Answers on Credit Scores and Buying a House

What’s the best credit score to buy a house?

Aim for 740 or higher to get the best pricing. You can still buy with 620 to 700, and some programs accept lower, but you’ll pay more each month.

How do I check the credit score my mortgage lender will use?

Ask a loan officer to run a mortgage credit pull. Free apps often show a different model. Lenders pull all three bureaus and use your middle score, so expect a different number.

Should I wait to buy a house until my credit score improves?

Wait only if a few points would move you into a cheaper tier or a different loan type. Otherwise, compare today’s payment with the cost of waiting, including rent.

Why does my credit score look different on every app?

Each app uses a different scoring model and often a different bureau’s data. Your lender uses mortgage-specific versions, so none of the app numbers will match exactly.

When should I check my credit before applying for a mortgage?

Start six months before you plan to buy. That’s enough time to fix report errors and pay balances down. Check again right before applying and avoid new credit until closing.