To buy a house, the credit score you need depends largely on the type of mortgage loan you seek, but generally:
- For most conventional mortgages, a minimum credit score of about 620 is typically required to qualify
- FHA loans, which are government-backed, allow for lower credit scores: you can qualify with a score as low as 500 if you make a 10% down payment, or 580 if your down payment is at least 3.5%
- VA loans usually require a credit score of around 620, though there is no official minimum set by the VA; lenders may have their own requirements
- USDA loans do not have a strict minimum credit score set by the agency, but lenders often require a score between 580 and 640
- Jumbo loans, which are for amounts exceeding conforming loan limits, generally require a higher credit score, around 700 or more
Higher credit scores (above 670 or 740) improve your chances of qualifying for better interest rates and loan terms
. Other factors besides credit score, such as debt-to-income ratio, income, and loan-to-value ratio, also influence mortgage approval
. In summary, aiming for a credit score of at least 620 will give you access to most conventional loans, but if your score is lower, government-backed loans like FHA can be an option with appropriate down payments
