One of the most common questions I hear from homebuyers is: “What credit score do I need to buy a house?” The short answer is – it depends. There’s no single magic number, there are many different mortgage products with different qualifying credit scores, and you may be closer to homeownership than you think.

Let’s break down how credit scores work, what lenders really look for, and what options may be available, even if your credit isn’t perfect.

Why Your Credit Score Matters

Your credit score helps lenders evaluate how likely you are to repay a loan. It plays a major role in:

• Whether you qualify for a mortgage
• What loan programs you’re eligible for
• The interest rate you’ll receive
• Your monthly payment and long-term costs

Generally speaking, higher credit scores unlock better rates and more options, but lower scores don’t automatically disqualify you.

Minimum Credit Score by Loan Type

Here’s a general overview of common mortgage programs and their typical minimum credit score requirements:

Conventional Loans

• Minimum score: Typically 620
• Best rates: Usually 740+
• Ideal for buyers with solid credit and stable income

FHA Loans

• 580 with 3.5% down
• 500–579 may qualify with 10% down (lender-dependent)
• Popular with first-time buyers and those rebuilding credit

VA Loans (for eligible veterans and service members)

• No official minimum, but most lenders look for a minimum of 580–620
• No down payment and flexible credit guidelines

USDA Loans

• 640 is common for automated approval
• Designed for eligible rural and suburban areas

What Lenders Look at Beyond Your Credit Score

Your credit score is important, but it’s only one piece of the puzzle. Lenders also evaluate:

• Debt-to-income (DTI) ratio
• Payment history and recent credit behavior
• Employment and income stability
• Down payment and savings
• Type and mix of credit accounts

I often see buyers with lower scores still qualify because the rest of their financial picture is strong.

How Your Credit Score Affects Your Interest Rate

Even a small difference in your credit score can significantly impact your monthly payment and the total interest you pay over time.

For example:

• A borrower with a 760 score will qualify for a much lower rate than someone with a 660 score
• That difference can equal tens of thousands of dollars over the life of the loan

This is why it’s smart to understand your score and explore whether a little preparation could save you money.

Can You Buy a Home With Bad Credit?

Yes, it’s possible, depending on your situation. If your credit score is lower:

• FHA or VA loans may still be an option
• You may need a higher down payment
• Sometimes there’s easy ways to improve your score by even 20-40 points and this could make a big difference

Many buyers assume they need “perfect credit” and delay their homeownership plans unnecessarily.

Not Sure Where You Stand? Let’s Take a Look

If you’re thinking about buying a home, or even just exploring your options, the smartest next step is a quick conversation. A short call or email can help you understand where your credit stands, what loan programs you may qualify for, and whether there are simple steps you can take to improve your buying power.

Whether you’re ready to buy now or planning for the future, I’m here to help you make confident, informed decisions. Call me today at (214) 542-4095 or email Rob@TeamRobHomeLoans.com to get a personalized look at your credit and mortgage options. There’s no pressure, just clear answers and expert guidance to help you move forward when the time is right.