What Is a Good Credit Score to Buy a House? A Complete Guide for Homebuyers

Your credit score is a critical factor when buying your dream home and lenders use it to gauge whether you will make timely repayments on the mortgage. But exactly what is a good credit score to buy a house? A credit score of at least 620 is preferred by most lenders, with certain government-secured loans permitting even lower scores.

Why Do Credit Scores Matter in Home Buying?

Your credit score shows how you manage your finances and how responsible you are. The higher your score, the less of a risk you are considered, and thus you might be offered better interest rates with loan terms. Most lenders recognize the FICO score scale that ranges between 300 and 850 and can be classified as:

• 800 and above: Exceptional
• 740–799: Very Good
• 670–739: Good
• 580–669: Fair
• 579 and below: Poor

Others that lenders look at aside from credit scores are your debt-to-income ratio (DTI) that is preferably below 36%.

What Is the Lowest Credit Score to Buy a House?

If you’re wondering, “what is the lowest credit score you can have to buy a house?“, the answer depends on the mortgage type:

Loan Type	Lowest Credit Score to Buy a House
Conventional Loan	620
FHA Loan	500 (with 10% down) or 580 (with 3.5% down)
USDA Loan	No set minimum, but lenders prefer 640
VA Loan	No official minimum, lenders often look for 620
Jumbo Loan	Typically 700+

So, what is the lowest credit score to buy a house? one can even contemplate home buying is 500. You may be eligible for a loan with an FHA lender who accepts that score; however, the costs associated with obtaining such a loan will go up the lower your score is, at least in terms of down payments.

How Credit Scores Can Affect Mortgage Interest Rate

After all, your credit score truly impacts the rate of interest that a lender will give you. Here is how varying credit scores may affect your monthly repayments for a $300,000 mortgage:

FICO Score	Estimated APR	Monthly Payment	Total Interest Paid
760–850	7.21%	$2,038	$433,529
700–759	7.43%	$2,082	$449,614
620–639	7.85%	$2,171	$481,502

How Credit Scores Can Affect Mortgage Interest Rate

After all, your credit score truly impacts the rate of interest that a lender will give you. Here is how varying credit scores may affect your monthly repayments for a $300,000 mortgage:

The lower score might cost you thousands of dollars over the duration of your loan. Clearly, it is worth the effort to raise your credit score if necessary before applying.

Average Credit Scores in the U.S.

Understanding where you stand compared to others can help gauge your readiness:

• 715: National average credit score (2024)
• 742: Minnesota’s average (highest)
• 680: Mississippi’s average (lowest)
• 772: Median score for new mortgage borrowers in 2025

Ways to Boost Credit Score Before Buying a House

If your credit needs work, there are some proven tips:

1. Check your credit reports from Experian, Equifax, and TransUnion for accuracy.
2. Pay down any credit balances left above 30% utilization.
3. Missed payments must never happen; your payment history constitutes 35% of your FICO score.
4. Do not open new lines of credit prior to mortgage application.
5. Keep older accounts open, as this lengthens your credit history.

In Conclusion: 

When one posits a question on what credit score to buy house, the answer really depends on the particular loans one goes after, and his own degree of flexibility on the financial side during his home-buying journey. For conventional loans, a credit score of 620 plus-or-minus is taken as the minimum standard. In the eyes of lenders, this score declares that you have a responsible credit history and present fewer risks as a borrower.

Scores below 620-however-hold on some hope. FHA loans provide a route for a buyer who has a lower credit score to own a home. Some things to consider under FHA loans are:

• A credit score between 500–579 qualifies you for a loan, provided you make a minimum 10% down payment.
• A score of 580 or higher allows you to make a lower down payment of just 3.5%, making homeownership more accessible.

Why Your Credit Score Matters Beyond Approval

Your credit score doesn’t just determine whether you qualify for a loan—it also influences the mortgage interest rate and loan terms you’ll be offered. A higher score can mean:

• Lower monthly mortgage payments.
• Thousands of dollars saved over the life of the loan.
• More favorable loan products, including those with reduced fees or shorter terms.

On the other hand, a lower score could mean:

• Higher interest rates.
• Stricter lender requirements (e.g., higher down payments or additional documentation).
• Limited loan options.

The Smart Approach.

Better Credit Score Cheat before Applying

While you could, generally, proceed with a credit score meeting minimum eligibility, establishing higher scoring gives you more financial room. A few months’ worth of careful planning to pay down existing debt; correct inaccurate entries on your report if any; logistic maintenance of credit-building means could do a whole lot more for an applicant. Miscellaneous life savings of tens of thousands in interest could be made by simply pulling this off for a minute: from 620 to 740+.  In essence, one needs at least 620 for the conventional mortgage or FHA should be explored if your credits are not there yet. However, the better the scores the better the future financial life as a homeowner. Improve your credit now; your future self and bank balance will thank you for it.