What Credit Score Is Needed to Buy a Home?

Buying a home begins with getting your finances in order. This includes your credit score, which is one of the first things lenders will look at when you apply for a mortgage. 

The credit score needed to buy a home can vary depending on the type of loan and your lender, but in general, a higher score offers more buying power. It could help you qualify more easily or secure lower interest rates, which saves you money. 

Whether you’re just starting your home search or getting serious about comparing loans to buy a home, understanding your credit score is a key first step toward homeownership. 

Key takeaways  

• The minimum credit score needed to buy a home typically starts at 620 for conventional loans and 580 for government-backed loans like FHA and VA loans.  
• Each lender sets their own credit score requirements and will also consider factors like your income, debts, and down payment amount when reviewing your application. 
• A higher credit score may help you unlock better mortgage rates, potentially saving you thousands over the life of your loan. 
• Take steps to get your credit mortgage-ready before applying for a loan. Paying down debt, making on-time payments to credit cards, and checking your credit report for errors could boost your score and chances of mortgage approval. 

What’s a good credit score to buy a home? 

While each lender sets their own criteria, the credit score needed to buy a home usually falls within the “good” to “excellent” range, as shown in the table below. For most loan types, lenders prefer to see a score of at least 620 before they consider your application. 

Here’s a breakdown of credit scores and their impact on home buyers: 

Credit Score Range	Rating	What It Means for Home Buyers
740-800+	Excellent	Likely to qualify for the best rates
670-739	Good	Competitive rates and more options
580-669	Fair	May qualify, but with higher rates
Below 580	Poor	Limited options; FHA loans may be possible

Of course, the better your score, the more options you’ll have when exploring mortgages. High scores typically lead to better loan terms, including lower interest rates and fewer hurdles during the approval process. 

Keep in mind that individual lenders may set their own thresholds, and your credit score is just one important aspect of your overall financial picture.  

What credit score do you need to buy a home? 

The specific credit score needed to buy a home depends on the type of mortgage you’re applying for. That’s because each loan program sets its own minimum credit requirements, some offering more flexibility than others. 

Government-backed loans like FHA and VA loans, for example, tend to be more accessible for buyers with lower scores. Jumbo loans typically require stronger credit.  

Here are the minimum credit scores by loan type: 

Loan Type	Minimum Credit Score	AmeriSave Preference
Conventional	620	620
Jumbo	700	700
FHA	580 (500 with 10% down)	580
VA	No set minimum	580

How your credit score affects mortgage rates

Your credit score doesn’t just impact whether you qualify for a mortgage. It also helps the lender determine the interest rate you’ll receive on the loan, which can have a major impact on how much you pay over time. 

Generally, the higher your score, the lower your rate — and the more you save on interest payments over the life of your loan. For example, let’s say you’re borrowing $300,000 for a 30-year fixed-rate mortgage: 

• With a credit score of 760, you could qualify for a 6.25% rate and pay about $1,847 per month. 
• With a score of 640, your rate may rise to 7.25%, bringing your monthly payment closer to $2,047. 

This means the person with the higher credit score pays $2,400 less per year, saving $71,775 in interest over the life of the loan. 

While your credit score affects your mortgage rate, lenders also review factors like your down payment, debt-to-income (DTI) ratio, and loan type when considering your application.  

Ways to improve your credit before buying a home

Improving your credit score before applying for a mortgage could boost your chances of qualifying while also helping you get a better interest rate. It might seem like a difficult process, but you don’t need to be perfect. You just need to show consistent, responsible credit behavior in the months leading up to your loan application. 

Here are some effective ways to get started: 

1. Pay down existing debt

High credit card balances can negatively impact your credit score, especially if your credit utilization is above 30%. Focus on paying down high-interest debt to reduce your balance and free up more of your available credit. 

2. Make on-time payments 

Payment history is the most important factor in your credit score. Set reminders or auto-payments to make sure you never miss a due date. Consistent, on-time payments can help improve your score. 

3. Keep old accounts open

Closing old or unused accounts shortens your credit history and could lower your score. Keep long-standing accounts open to show a strong track record of managing credit responsibly. 

4. Avoid opening new credit lines 

Every time you apply for new credit, it triggers a hard credit inquiry, which may lower your score. Try to avoid opening new credit cards or loans in the months before applying for a mortgage. 

5. Check your credit report for errors 

Request free copies of your credit report and look for inaccuracies like incorrect account balances or unauthorized accounts. Dispute any errors with the credit bureaus to keep your report clean. 

Find your personalized mortgage rate 

While reaching the credit score needed to buy a home is a key part of qualifying, it’s only one piece of the mortgage puzzle. Lenders also review your income, debt-to-income (DTI) ratio, the size of your down payment, and employment history when reviewing your application. The more prepared you are in all these areas, the more likely you are to get the loan you want. 

Ready to see what’s possible for you? Apply now to discover your personalized mortgage rate. 

Frequently asked questions  

What is the minimum credit score to buy a home?

Most lenders prefer to see a minimum credit score of 620. If you have a credit score of 670 or higher, you’ll be more likely to secure loan approvals and favorable interest rates. 

Does credit score to buy a home depend on the type of loan?

Yes, the credit score needed to buy a home can vary based on the type of loan you choose.  

For conventional loans, most lenders prefer a score of at least 620. FHA loans allow scores as low as 580 with a 3.5% down payment — or even 500 with 10% down. VA loans don’t have a government-set minimum, but many lenders look for scores around 580 or higher. Each loan program has set different guidelines, so it’s important to explore your options and find the best fit for your credit and overall financial profile.