To buy a house, the credit score you need depends largely on the type of mortgage loan you are applying for, but generally:
- For a conventional mortgage, you typically need a credit score of at least 620 to qualify
- For an FHA loan, which is government-backed, you can qualify with a credit score as low as 500 if you make a 10% down payment, or at least 580 if your down payment is 3.5%
- VA loans usually require a credit score of around 620 , though the Department of Veterans Affairs does not set a strict minimum; lenders often impose their own requirements
- USDA loans typically require a credit score of 580 or higher, but this can vary by lender
Higher credit scores (above 740) can help you qualify for better mortgage rates and terms, while lower scores may still allow you to buy a home but often with higher interest rates and fewer loan options
. In summary:
Loan Type| Typical Minimum Credit Score
---|---
Conventional Loan| 620
FHA Loan| 500 (with 10% down) / 580 (with 3.5% down)
VA Loan| ~620 (lender-dependent)
USDA Loan| 580+
Jumbo Loan| 700+
Other factors like debt-to-income ratio, income, and down payment also influence loan approval beyond credit score alone
. Thus, while 620 is a common baseline for many loans, lower scores may still qualify for specific government-backed loans, and higher scores improve your chances and loan conditions.
