The minimum credit score to buy a house in 2026 is 620 for a conventional loan and 580 for an FHA loan. But the minimum just gets you in the door — a score of 740 or higher unlocks the best mortgage rates and saves you tens of thousands of dollars over the life of your loan.
Minimum Credit Score by Loan Type (2026)
| Loan Type | Minimum Score | Notes |
|---|---|---|
| Conventional (Fannie/Freddie) | 620 | Best rates at 740+ |
| FHA (3.5% down) | 580 | MIP required |
| FHA (10% down) | 500 | Harder to find lenders |
| VA loan | No official minimum | Most lenders require 620+ |
| USDA loan | 640 | Automated underwriting; rural areas only |
| Jumbo loan | 700–720 | Varies significantly by lender |
Individual lenders can set higher minimums than program minimums.
How Your Credit Score Affects Your Mortgage Rate
Your credit score doesn’t just determine whether you qualify — it determines what interest rate you pay. On a conventional 30-year mortgage, lenders tier rates by credit score band. The difference between a 620 and a 760 score can be 1.5–2.5 percentage points in interest rate.
Worked example — $300,000 mortgage, 30 years:
| Credit Score | Approximate Rate | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 760–850 | 6.50% | $1,896 | $382,560 |
| 740–759 | 6.75% | $1,945 | $400,200 |
| 720–739 | 7.00% | $1,996 | $418,560 |
| 700–719 | 7.25% | $2,047 | $437,040 |
| 680–699 | 7.50% | $2,098 | $455,400 |
| 660–679 | 8.00% | $2,201 | $492,360 |
| 620–659 | 8.75% | $2,360 | $549,600 |
Rates are illustrative estimates. Actual rates depend on lender, loan term, down payment, and market conditions.
The gap between a 620 and 760 score costs roughly $167,000 in extra interest on a $300,000 loan. Spending 6–12 months improving your credit before applying can pay off enormously.
Conventional Loan Credit Score Requirements
Conventional loans backed by Fannie Mae and Freddie Mac require a minimum 620 credit score. These are the most common mortgage type for buyers with solid credit and a down payment of 3–20%.
With a conventional loan:
- 620–699: You qualify, but expect higher rates. Private mortgage insurance (PMI) is required if you put down less than 20%.
- 700–739: Good rates, PMI requirements vary by down payment.
- 740+: Best available rates. PMI costs are lower if applicable.
Fannie Mae’s Desktop Underwriter system considers your score alongside debt-to-income ratio, down payment, and loan size. A higher score can compensate for a higher DTI, or vice versa.
FHA Loan Credit Score Requirements
FHA loans are backed by the Federal Housing Administration and are designed for buyers with lower credit scores or smaller down payments.
- 580+: Eligible for 3.5% down payment
- 500–579: Eligible for 10% down payment
- Below 500: Not eligible for FHA financing
FHA loans require mortgage insurance premium (MIP) regardless of down payment size. Unlike PMI on conventional loans, FHA MIP cannot be canceled if you put down less than 10% — it stays for the life of the loan. If you put down 10%+, MIP drops off after 11 years.
FHA practical reality: Even though 500 is the technical minimum, most FHA lenders set overlays at 580 or 620. Finding a lender willing to approve a 500–579 score requires more legwork.
VA Loan Credit Score Requirements
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. The VA itself does not set a minimum credit score — lenders do.
In practice, most VA lenders require 620+, though some will approve 580. VA loans offer:
- No down payment required
- No private mortgage insurance
- Competitive rates even for lower scores
- Funding fee (can be rolled into the loan)
If your score is below 620 and you have VA eligibility, seek lenders that specialize in VA loans — they often have more flexible overlays than conventional lenders.
USDA Loan Credit Score Requirements
USDA loans are for buyers in eligible rural and suburban areas who meet income limits. The USDA’s automated underwriting system (GUS) generally requires a 640 minimum score. Manual underwriting may be available for lower scores with strong compensating factors.
USDA loans offer no down payment and competitive rates, making them valuable for qualifying buyers outside major metro areas.
Jumbo Loan Credit Score Requirements
Jumbo loans exceed Fannie Mae and Freddie Mac conforming loan limits (currently $806,500 in most areas; higher in high-cost markets). Because they’re not backed by the government agencies, lenders take on more risk.
Most jumbo lenders require 700–720 minimum, with 740+ for competitive rates. Requirements vary significantly by lender — some require 760+ for loan amounts above $2 million.
Where Your Credit Score Comes From
Your mortgage credit score is typically pulled from all three bureaus — Experian, Equifax, and TransUnion — and lenders use the middle of the three scores (not the highest or the average). If you’re applying jointly, most lenders use the lower of the two borrowers’ middle scores.
The score most mortgage lenders use is a specific FICO model: FICO Score 2 (Experian), FICO Score 5 (Equifax), and FICO Score 4 (TransUnion). These are older versions of FICO and may differ from the FICO Score 8 or VantageScore 3.0 you see in free credit monitoring apps.
How to Improve Your Credit Score Before Buying
If your score isn’t where you need it to be, these actions have the biggest impact:
Pay down credit card balances. Credit utilization — the percentage of your credit limit you’re using — accounts for 30% of your FICO score. Getting below 30% helps; below 10% is ideal before a mortgage application.
Never miss a payment. Payment history is 35% of your score. A single 30-day late payment can drop a good score by 60–110 points.
Don’t open new credit. Each new credit application creates a hard inquiry. Opening new cards or loans in the months before your mortgage application can hurt your score and raise lender red flags.
Don’t close old accounts. Closing old cards reduces your total credit limit and can hurt utilization.
Dispute errors. Get your free credit reports at AnnualCreditReport.com and dispute any incorrect late payments, accounts that aren’t yours, or outdated derogatory marks.
Timeline for improvement:
- Paying down balances: Score impact visible within 1–2 billing cycles
- Disputing errors: 30–60 days for the bureau to investigate
- Recovering from a hard inquiry: 3–6 months for full recovery
- Recovering from a missed payment: 12–24 months for significant improvement
What to Do Now
If your score is 740+, start shopping lenders and comparing rates. Check rates from at least 3 lenders — the CFPB estimates that getting one additional quote saves the average buyer $1,500.
If your score is 620–739, you can qualify for most loan types today, but consider whether 6–12 months of credit improvement would meaningfully lower your rate.
If your score is below 620, focus on getting above 580 (FHA threshold) or 620 (conventional threshold). Even getting from 580 to 620 opens significantly more lender options.
Related Articles
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- Credit Score Ranges: What Each Range Means
- How to Improve Your Credit Score Fast
- How to Remove PMI From Your Mortgage
- First-Time Homebuyer Guide 2026
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