What Credit Score Do You Need to Buy a House in 2026?

The short answer: you need a minimum of 580 for an FHA loan with standard down payment, 620 for a conventional loan, and 700+ for a jumbo mortgage. But qualifying and getting a good rate are two different things — and the difference between a 620 and a 740 credit score on a $350,000 mortgage can be $80,000 or more over 30 years.

This guide covers the minimum requirements for every major loan type, the real cost of a lower score in dollar terms, and what to do if your score isn't where it needs to be.

Minimum Credit Scores by Loan Type

Lenders use your FICO score — not your VantageScore — to make mortgage decisions. The scores shown by free apps like Credit Karma are often VantageScores, which can differ meaningfully from your FICO. When you're preparing to buy, check your FICO score specifically (MyFICO.com, or through your bank if they offer it free).

FHA Loans

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They have the most accessible credit requirements of any major loan type.

580 or higher: Minimum 3.5% down payment
500–579: Minimum 10% down payment
Below 500: Not eligible for FHA financing

In practice, many FHA lenders add what's called a "lender overlay" — their own minimum above the FHA floor. You'll commonly see lenders require 620+ even for FHA loans, despite the official 580 threshold. If your score is 580–619, shop specifically for lenders without overlays.

FHA loans also require mortgage insurance premiums (MIP) for the life of the loan unless you put down 10% or more, in which case it falls off after 11 years. This is an important cost factor beyond the credit score minimum.

Conventional Loans

Conventional loans (conforming mortgages backed by Fannie Mae and Freddie Mac) have stricter minimums:

620: The technical floor for most conventional loans
660+: More widely available terms and fewer pricing adjustments
740+: Best pricing tier; maximum rate advantages

Conventional loans use a pricing system called Loan-Level Price Adjustments (LLPAs) — a grid of risk-based fees that vary by credit score and down payment percentage. A 620 score triggers significantly higher fees than a 740 score, which lenders either charge as points upfront or roll into your interest rate.

VA Loans

VA loans are available to eligible veterans, active-duty service members, and surviving spouses. The VA itself doesn't set a minimum credit score, but lenders typically require:

620: Most VA lenders' practical minimum
No down payment required for eligible borrowers
No mortgage insurance (a significant cost advantage)

VA loans are among the best mortgage products available and worth maximizing if you're eligible — the credit score requirements are similar to conventional but without the down payment and PMI burden.

USDA Loans

USDA loans finance homes in eligible rural and suburban areas with no down payment. Requirements:

640: Standard lender minimum for USDA loans
580–639: Possible with manual underwriting and stronger compensating factors
Property must be in an eligible area (check the USDA eligibility map)

Jumbo Loans

Jumbo loans finance amounts above the conforming loan limit ($806,500 in most counties for 2026, higher in high-cost areas). Because they're not government-backed, lenders impose stricter requirements:

700–720: Typical minimum
740+: Required at some lenders for the largest amounts
Higher down payments often required (10–20%)
Larger cash reserves typically required post-closing

The Real Dollar Cost of Your Credit Score

Qualifying is one threshold. The rate you pay is another — and the gap compounds over decades.

Here's what different FICO score ranges translate to on current mortgage rates, using a $350,000 30-year fixed conventional loan as the benchmark:

FICO Score Range	Approximate Rate	Monthly Payment	Total Interest Paid
760–850	~6.10%	$2,122	$413,920
700–759	~6.35%	$2,183	$435,880
680–699	~6.55%	$2,233	$453,880
660–679	~6.80%	$2,294	$475,840
640–659	~7.30%	$2,411	$518,960
620–639	~7.75%	$2,512	$554,320

The spread between a 620 score and a 760 score: $390/month and roughly $140,000 in total interest over 30 years on the same loan. Even improving from 660 to 760 saves about $172/month — $61,920 over the life of the loan.

These numbers make the math on waiting 6–12 months to improve your score very clear in many situations.

It's Not Just Your Score: What Else Lenders Look At

Your credit score is the first filter, but mortgage approval involves several other factors that interact with it.

Debt-to-Income Ratio (DTI). Lenders want your total monthly debt payments — including the new mortgage — to be below 43% of your gross monthly income (45–50% is possible with compensating factors on some loan types). A high score with a bad DTI can still result in denial. If you're carrying significant credit card, auto, or student loan debt, address that alongside your credit score.

Down payment. A larger down payment reduces the lender's risk, which can partially offset a lower score. The interaction between score and down payment is especially significant in conventional loan pricing — a 680 score with 20% down gets meaningfully better pricing than a 680 score with 5% down.

Employment and income history. Lenders want two years of consistent employment history. Self-employed borrowers typically need two years of tax returns showing stable income. A 750 credit score doesn't compensate for a two-month employment gap at the wrong moment.

Credit history depth. Score and history are related but not identical. A 690 score built over 12 years looks different to an underwriter than a 690 score built over 18 months, even if the number is the same. Thin credit files (few accounts, short history) can trigger manual review even when the score clears the minimum.

What to Do If Your Score Is Below the Threshold

If you're below 620 and want a conventional loan, or below 580 for FHA, these are the highest-impact moves:

Pay down credit card balances first. Credit utilization — the ratio of your balance to your credit limit — is the fastest-moving factor in your score. Getting all cards below 30% utilization (ideally below 10%) can raise your score 20–50 points within a single billing cycle after the new balance is reported. This is the single most controllable lever.

Don't close old accounts. Closing a credit card shortens your average account age and reduces your total available credit, both of which hurt your score. Leave old accounts open even if you don't use them.

Dispute errors. Get your free credit reports from AnnualCreditReport.com (not the commercial look-alike sites) and look for accounts you don't recognize, incorrect payment history, or balances that don't match. Errors are more common than most people realize and disputing them is free.

Become an authorized user. If a family member has a long-standing card with low utilization and a perfect payment history, being added as an authorized user on that account can add that history to your credit file. The effect varies, but it can add meaningful points quickly.

For a detailed roadmap including realistic timelines for each score range, our guide on raising your credit score by 100 points walks through the mechanics step by step.

Should You Wait to Improve Your Score or Buy Now?

This is the question that matters most if your score is in the 620–680 range and you're ready to buy.

The math depends on your specific situation, but the framework is:

Calculate the monthly savings from a better rate. Use the table above as a rough guide. If improving your score from 640 to 700 saves you $150/month on your target loan, that's $1,800/year.
Estimate how long it takes to reach the next tier. Paying down utilization aggressively and catching up on any late payments can move a score 30–50 points in 3–6 months. A more substantial move (below 580 to above 640) can take 12–18 months.
Factor in the housing market. If prices are rising and rates are likely to drop (which could attract more buyers and push prices up), waiting has its own cost. If the market is flat or cooling — as much of 2026 has been — the waiting cost is lower. Check the current mortgage rate and market environment before deciding.
Consider the down payment opportunity. The months you spend improving your score are months you can also be saving. A larger down payment both improves your loan terms and reduces your monthly payment.

A rough rule: if a 6-month wait would move you into a meaningfully lower pricing tier (say, 659 to 660, or 679 to 680) and save $100+ per month, the math almost always favors waiting.

Frequently Asked Questions

What credit score is needed for a first-time homebuyer program?

Most state-run first-time homebuyer programs use FHA loan guidelines, so 580 is the common floor. Some programs have their own minimums (often 620–640) and income restrictions. Check your state's housing finance agency for specific program requirements.

Does my spouse's credit score affect our mortgage application?

If you're applying jointly, lenders typically use the lower middle score of the two borrowers for qualification and pricing purposes. If one spouse has significantly lower credit, it may be worth applying solo if one income is sufficient — but keep in mind that only the applying spouse's income counts.

How long does negative information stay on my credit report?

Most negative items (late payments, collections, charge-offs) stay for 7 years from the date of first delinquency. Bankruptcies stay 7–10 years depending on the type. After the 7-year mark, these fall off automatically.

Will getting pre-approved hurt my credit score?

A mortgage pre-approval requires a hard inquiry, which typically drops your score 5–10 points temporarily. Importantly, multiple mortgage inquiries within a 14–45 day window (depending on the scoring model) are typically counted as a single inquiry — so shopping multiple lenders in a concentrated window doesn't multiply the damage.

Is 700 a good credit score to buy a house?

700 is solidly in the "good" range and will qualify you for conventional loans with competitive (though not the best available) rates. To access the top pricing tier and the lowest rates, most lenders want 740+. The difference between 700 and 740 is meaningful but smaller than the difference between 620 and 700.

If your score needs work before you're ready to apply, our step-by-step guide to raising your credit score covers realistic timelines and the highest-impact actions at each stage. For the current rate landscape and whether now is the right time to buy, see our mortgage rate analysis.