Your credit score is one of the biggest factors lenders consider when approving you for a mortgage. If you’re wondering, "What does my credit score need to be to buy a home?", here’s a breakdown of the minimum requirements, how your score affects your loan options, and what you can do to improve it.

Minimum Credit Scores for Different Loan Types

The minimum credit score required to buy a home depends on the type of mortgage loan you’re applying for:

✅ Conventional Loan – 620+
Most conventional loans require at least a 620 credit score to qualify. A higher score (typically 740+) gets you the best interest rates and terms.

✅ FHA Loan – 500-580+

• With a 580+ score, you can qualify for an FHA loan with as little as 3.5% down.

• With a 500-579 score, you may still qualify, but you’ll need at least 10% down.

✅ VA Loan – No minimum set by the VA
The VA loan program, available to eligible military members and veterans, doesn’t have a government-set minimum, but most lenders prefer at least 580-620.

✅ USDA Loan – 640+ preferred
USDA loans, designed for rural and suburban homebuyers, typically require a 640+ score for streamlined approval. Some lenders may approve lower scores with strong compensating factors.

👉 Source: Consumer Financial Protection Bureau – Mortgage Credit Score Guidelines

How Your Credit Score Affects Your Loan Terms

Even if you qualify with a lower credit score, a higher score can save you money by securing a lower interest rate. For example, a borrower with a 760+ score may get a significantly lower mortgage rate compared to someone with a 620 score, reducing their monthly payment.

👉 Source: FICO – How Credit Scores Impact Mortgage Rates

How to Improve Your Credit Score Before Buying

If your credit score isn’t where you want it to be, here are some quick ways to improve it:

✔️ Pay down credit card balances – Keep your utilization below 30% of your credit limit.
✔️ Make all payments on time – Your payment history makes up 35% of your score!
✔️ Avoid opening new credit accounts before applying – Hard inquiries can temporarily lower your score.
✔️ Check your credit report for errors – You can get a free copy at AnnualCreditReport.com.

What’s the Best Credit Score to Buy a Home?

While you can qualify with a lower score, a 700+ credit score will give you better rates and terms, saving you thousands over the life of your mortgage. If you’re not quite there, taking steps to improve your score can make a big difference.

Want to check your mortgage options based on your credit? Reach out today, and let’s find the best path to homeownership for you!