On this page
- Minimum credit score to buy a house by loan type
- Is your credit score good enough to buy a house?
- How much a higher credit score saves on a conventional loan
- Which credit score mortgage lenders use
- What else lenders check besides your credit score
- How to raise your credit score before you buy a house
- Credit score to buy a house: FAQ
- Next step: know your mortgage score before you shop
There is no single credit score to buy a house. For example, FHA loans allow a score of 580 with 3.5% down, or 500 to 579 with 10% down. Fannie Mae has set no fixed minimum for loans approved through its Desktop Underwriter (DU) system since November 16, 2025, but many lenders still want 620 or more. Also, on a conventional loan, a score of 740 or more usually gets better pricing, and 780 or more gets the best.
So a good credit score to buy a house is one that gets you approved and a fair price. Find your number in the score table below, then see what moving up one tier could save.
Minimum credit score to buy a house by loan type
Each loan program sets its own rule, and some set none. However, lenders can add a stricter rule of their own, called an overlay. That is why two lenders can answer differently on the same score.
| Loan type | Minimum score | Down payment | Note |
|---|---|---|---|
| FHA | 580 for maximum financing; 500–579 allowed | 3.5% with 580 or more; 10% with 500–579 | A score below 500 is not eligible. Many lenders set a higher minimum. |
| Conventional (Fannie Mae) | No fixed minimum in DU since November 16, 2025. Manual underwriting: 620 for a fixed rate, 640 for an ARM | From 3% on some fixed-rate purchases | DU weighs the whole file. Many lenders keep 620 as an overlay. |
| VA | No VA minimum | None required by VA in most cases | Each lender sets its own minimum. |
| USDA | No fixed minimum in HB-1-3555 | None required | The automated system (GUS) decides whether the score is acceptable. |
| Jumbo | No agency rule | Varies by lender | For loans above the 2026 conforming limit of $832,750 (one unit, most counties). |
Sources: HUD Handbook 4000.1 (II.A.1.b.ii(A)(3) and II.A.2.b.i), Fannie Mae Selling Guide B3-5.1-01, VA Pamphlet 26-7 chapters 3 and 4, USDA HB-1-3555 chapters 6 and 10.
FHA: the lowest published floor
With an FHA score of 580 or more, a buyer can borrow up to 96.5% of the home’s value. With 500 to 579, the loan is capped at 90%, so the buyer puts down at least 10%. Still, many FHA lenders set a higher floor of their own. In addition, the FHA loan guidelines cover the program, and our guide to low credit score FHA loans covers lenders that go lower. If your score is below 620, also see how to get a mortgage with bad credit.
Conventional: no fixed floor in DU, but overlays remain
Fannie Mae removed the 620 minimum for DU loan casefiles on November 16, 2025 (Announcement SEL-2025-09). Instead, DU judges credit from the full credit report along with income, assets and loan terms. A manually underwritten loan still needs at least 620 for a fixed rate or 640 for an adjustable rate.
In practice, many lenders still turn away conventional files below 620. As a result, a buyer with a 600 score may get a DU approval and still need a lender without that overlay.
VA, USDA and jumbo
The VA lender handbook states that “VA does not have a minimum credit score requirement.” Lenders set their own, so compare several if your score is low. Also, see VA home loans for eligibility. For USDA, GUS decides whether a score is acceptable, and referred files go to manual underwriting; see the USDA mortgage loan guide. Finally, jumbo loans have no agency rule, so each lender sets its own.
Is your credit score good enough to buy a house?
Find your score in the first column. The last column shows Fannie Mae’s price adjustment on a conventional purchase loan with 10% down (90% LTV). Lower is better.
| Your score | What you can usually get | Fannie Mae price adjustment at 90% LTV |
|---|---|---|
| 800 or more: Excellent. The best conventional pricing | Any loan type. See what an 800 credit score gets you | 0.250% |
| 780–799: Excellent. Same top tier as 800 | Any loan type | 0.250% |
| 760–779: Very good. One step below the top | Any loan type | 0.500% |
| 740–759: Very good. Strong conventional pricing | Any loan type | 0.750% |
| 720–739: Good. Approved by most lenders | Any loan type; a higher price than 740 or more | 1.000% |
| 700–719: Good. Approved by most lenders | Any loan type; a higher price than 740 or more | 1.250% |
| 680–699: Fair to good. Usually approved | Conventional costs more; compare FHA | 1.500% |
| 660–679: Fair. The rest of the file matters more | Conventional possible; FHA may cost less | 1.750% |
| 640–659: Fair. Higher conventional cost | FHA, VA or USDA may cost less | 2.000% |
| 620–639: Low. Meets common lender overlays | Conventional at the highest price tier; FHA | 2.625% |
| 580–619: Low. Below most conventional overlays | FHA with 3.5% down. See bad credit options | 2.625%, if a lender approves |
| 500–579: Very low. FHA with 10% down | FHA with a lender that accepts this range | Conventional approval unlikely |
| Below 500: Not eligible for FHA | Rebuild credit first | Conventional approval unlikely |
What the labels mean
The labels describe mortgage pricing. By contrast, myFICO calls 800 or more “exceptional,” 740 to 799 “very good,” 670 to 739 “good,” 580 to 669 “fair” and below 580 “poor.”
So a 700 credit score is good enough to buy a house with most loan types. However, it sits in the 700–719 tier, so on a conventional loan it pays more than a score of 740 or more.
How much a higher credit score saves on a conventional loan
Fannie Mae charges the lender a loan-level price adjustment (LLPA) on each loan it buys. Specifically, the LLPA is a percentage of the loan amount, set by the credit score and the LTV ratio. In turn, the lender usually passes it to the borrower as a higher rate or as discount points. Because the rate effect varies by lender, compare offers rather than assume a conversion.
Example: a $417,500 home with 10% down
For example, say a buyer purchases a home at the national median existing-home price of $417,500 (NAR, September 2026). The assumptions:
- 10% down payment: $41,750
- Loan amount: $375,750, an LTV of 90%
- 30-year fixed rate, purchase, one-unit principal residence
- Fannie Mae LLPA Matrix, updated September 30, 2026, purchase loans, 85.01–90.00% LTV column. The same grid applies to Classic FICO and VantageScore 4.0.
- The figures are one-time pricing charges only. In other words, they exclude property taxes, homeowners insurance, mortgage insurance, other closing costs and any other LLPAs that apply to the loan.
| Credit score | LLPA | In dollars on $375,750 |
|---|---|---|
| 780 or more | 0.250% | $939.38 |
| 760–779 | 0.500% | $1,878.75 |
| 740–759 | 0.750% | $2,818.13 |
| 720–739 | 1.000% | $3,757.50 |
| 700–719 | 1.250% | $4,696.88 |
| 680–699 | 1.500% | $5,636.25 |
| 660–679 | 1.750% | $6,575.63 |
| 640–659 | 2.000% | $7,515.00 |
| 639 or less | 2.625% | $9,863.44 |
Compared with a 780 or higher score ($939.38), a 700–719 score costs $3,757.50 more ($4,696.88 minus $939.38) on this loan. A 640–659 score costs $6,575.62 more ($7,515.00 minus $939.38). Since that cost arrives as a higher rate or more points, it can also raise the monthly payment.
Mortgage insurance also costs more with a lower score
With less than 20% down on a conventional loan, the buyer also pays private mortgage insurance (PMI). Insurers also price by credit score, so a lower score usually means a higher premium. However, no single public grid covers every insurer. See how much PMI costs and how much to put down on a house.
Some buyers pay no LLPA at all
Fannie Mae waives all LLPAs for HomeReady loans. It also waives them for first-time homebuyers with qualifying income at or below 100% of the area median, or 120% in high-cost areas. For these buyers, the score still affects approval and PMI, but not the LLPA.
Meanwhile, Freddie Mac’s 30-year fixed average was 7.24% for the week of October 29, 2026. Your offer will depend on your score tier, so check current mortgage rates and ask each lender to quote the same loan.
Which credit score mortgage lenders use
The score in a banking or credit app may not match the one a mortgage lender sees. For example, apps often show a different scoring model, or a score from one bureau. A mortgage lender, by contrast, pulls a three-bureau report with mortgage-specific scores.
For Fannie Mae loans, those are the Classic FICO versions: Equifax Beacon 5.0, Experian FICO Risk Model V2 and TransUnion FICO Classic 04 (often called FICO 5, 2 and 4). The lender then picks one score for each borrower:
- With three scores, the lender uses the middle one. For instance, scores of 700, 680 and 720 give a 700.
- With two scores, it uses the lower one.
- With more than one borrower, the lowest of those scores sets the loan’s price.
Fannie Mae (Selling Guide B3-5.1-02) and FHA (HUD 4000.1) both use this method. Therefore, a co-borrower with a lower score can move the whole loan into a higher LLPA tier.
VantageScore 4.0 is now accepted
Fannie Mae and Freddie Mac now accept VantageScore 4.0. A limited rollout began on April 22, 2026, and all approved lenders could use it in automated underwriting from September 9, 2026. Fannie Mae’s manual underwriting still requires Classic FICO. For FHA, case numbers assigned on or after January 1, 2027, can also use VantageScore 4.0 or FICO 10T (Mortgagee Letter 2026-11).
The lender chooses the model, so ask which one it used when you get your mortgage preapproval letter.
What else lenders check besides your credit score
A credit score to buy a house is only one part of the file. Lenders also weigh your debt-to-income ratio, down payment, cash reserves and job history. For example, a 700 score with a high DTI and no savings can still be declined. Meanwhile, a 660 score with low debt and solid reserves may be approved. For more, see how your credit score affects mortgage eligibility.
How to raise your credit score before you buy a house
Even a few months of focused work can move a score up a pricing tier:
- Pay every bill on time. After all, one new late payment can undo months of progress.
- Pay down credit card balances. In general, lower balances compared with your limits (utilization) usually help quickly.
- Do not open new credit. Hold off on new cards, car loans and store financing until after closing.
- Check all three credit reports and dispute errors. Then, file the dispute with the bureau that shows the error.
- Shop lenders in a short window. FICO counts several mortgage inquiries as one within 45 days on newer versions and any 14-day span on older ones. So keep applications within 14 days to stay inside both.
For more detail, see 7 ways to improve your credit for a mortgage. If you are early in the process, the first-time home buyer’s guide lays out the full timeline.
Credit score to buy a house: FAQ
What is a good credit score to buy a house?
A score of 740 or more is a good credit score to buy a house on a conventional loan, because it gets strong pricing. In fact, a score of 780 or more gets Fannie Mae’s best tier. Still, most loan types approve lower scores, starting at 580 for FHA with 3.5% down.
Is 700 a good credit score to buy a house?
Yes. A 700 score qualifies for most loan types with most lenders if the rest of the file is in order. However, in the example above ($375,750 loan, 10% down), it costs $3,757.50 more in Fannie Mae price adjustments than a 780 score.
Is 640 a good credit score to buy a house?
A 640 score can get you approved, but it is not a good score for conventional pricing. In the example above, it costs $6,575.62 more than a 780 score. So compare FHA, VA or USDA, which may cost less at this level.
Can I buy a house with a 580 credit score?
Yes, with FHA. Specifically, a 580 score meets HUD’s rule for maximum financing, which means 3.5% down. Some lenders set a higher floor, though, so you may need to apply with more than one.
What credit score do you need for a conventional loan?
Fannie Mae sets no fixed minimum for loans approved through DU. Even so, many lenders require 620 or more, and manual underwriting requires 620 for a fixed rate or 640 for an ARM.
Do lenders use FICO or VantageScore?
Most still use Classic FICO from all three bureaus. Since September 9, 2026, all approved Fannie Mae and Freddie Mac lenders may also use VantageScore 4.0 in automated underwriting. FHA accepts VantageScore 4.0 and FICO 10T for case numbers assigned from January 1, 2027.
Next step: know your mortgage score before you shop
Your app score is only a starting point. Instead, the score that sets your price comes from a lender’s three-bureau pull, and each 20-point tier on Fannie Mae’s grid changes the cost.
So ask two or three lenders for a preapproval within the same two weeks. As a result, you will see your mortgage score, the loan types you qualify for and what your tier costs. Then decide whether to buy now or spend a few months moving up a tier.
