What credit score do I need to buy a house?

When you apply for a home loan, also called a mortgage, the lender will typically check your FICO Score from three credit bureaus to see if you qualify for financing. FICO scores generally range from 300 to 850, and the higher your scores, the more favorable you may look to a lender — although they will take many other factors into account, such as your income and credit history, when making a lending decision. 

The credit score requirements to buy a house can vary depending on the type of mortgage you want to get. Here’s how your credit score can impact your ability to buy a house and the minimum credit score needed to qualify for a mortgage. 

What credit score do you need to get a mortgage? 

Many factors can impact the minimum credit score you must have to be eligible for a mortgage. In general, you’ll likely need at least a 620 FICO Score to qualify for a conventional loan, and if you want an adjustable-rate mortgage, the minimum score requirement is 640. With other types of home loans, like government-backed VA loans, there’s no industry-standard minimum credit score to meet. 

A higher credit score can work in your favor when you’re ready to shop for a home. A higher FICO Score signals to lenders that your credit risk is lower (you’re less likely to fall behind on your credit obligations in the near future). As a result, you may be able to qualify for lower mortgage interest rates and better loan terms that could save you thousands of dollars over the course of your home loan. 

Strong credit can help with more than just mortgage rates: Here are the benefits of a good credit score.

Qualifying credit scores by loan type

Different home loans typically require different minimum FICO scores. Here’s a look at the minimum credit score you might need to achieve based on the type of mortgage you’re seeking. 

It’s also worth pointing out that lenders may set their own requirements (called mortgage overlays) that impose stricter qualification standards. Just because you have credit scores that can satisfy the minimum underwriting guidelines doesn’t mean that your scores will be high enough to qualify for a home loan with every lender. 

What if my credit score isn’t high enough?

Your credit scores play an important role in your ability to qualify for a mortgage. If your credit scores aren’t high enough to satisfy a lender’s minimum requirements for the type of home loan you want, you might need to review your options to fix and repair bad credit before you seek out home financing.

The better your credit, the more you’ll save on a mortgage. Here are some tips to get help improve your credit standing

Preparing your credit for a mortgage

When you apply for a mortgage, the lender typically will review your credit reports from all three major credit bureaus — Equifax, TransUnion, and Experian — along with your associated FICO scores. 

You can access free copies of your credit reports every week AnnualCreditReport.com. And you may want to check your credit scores too. Many banks, including Citi, Amex and Bank of America, offer access to a free FICO Score, to qualifying customers. 

If you find mistakes on your credit reports, under the Fair Credit Reporting Act you can dispute any errors with the credit bureau. You can use the following guides to send disputes to the credit bureaus and request the removal of any errors from your credit reports.

Tips for boosting your credit score

It’s wise to try to improve your credit before any loan application. The condition of your credit can have a meaningful impact on your interest rate and loan terms when you borrow money. 

• Pay down credit card debt. If you have a high credit utilization rate, paying down your credit card balances can positively impact your credit scores. At the very least, reducing or perhaps even consolidating your credit card debt might save you money on interest charges. 
• Add positive payment history. Another possible way to improve your credit is to add accounts with positive payment history to your credit report. Opening new accounts like credit cards or credit builder loans might help you in the long run. In the short term, however, new credit could set your credit score back by adding hard inquiries to your credit report and reducing your average age of credit. Becoming an authorized user on a family member or friend’s well-managed credit card account might help you here. You could also consider programs like Experian Boost that may help you add eligible utility, phone, rent, or streaming services to your Experian credit report. 
• Avoid late payments. Payment history is the most important factor that influences your credit score. Therefore, on-time payments are a must if you want to avoid credit score setbacks. 

Other factors to consider when applying for a mortgage

Your credit history and credit scores are important factors that lenders evaluate when you apply for a mortgage. But a mortgage lender may also consider the following information when making a lending decision: 

• Debt-to-income ratio: The relationship between your income and the debts you owe (otherwise known as your debt-to-income or DTI ratio) plays an important role in your ability to qualify for a mortgage. A DTI ratio that’s low (and meets the lender’s qualification standards) indicates that you can afford the payments on your new home loan.
• Down payment: Certain home loans may require you to provide a down payment that’s equal to a certain percentage of the money you want to borrow. Down payment sizes often range from 3% to 20% of your loan amount. However, there are also low or no down payment options available with first-time homebuyers loans.
• Employment history: A lender may want proof that you’ve maintained steady employment for several years — preferably with the same employer (though there can be some exceptions to this rule).