What Credit Score Do You Need to Buy a House? (2026 Guide)
Your credit score determines what mortgage you qualify for and the interest rate you'll pay. Here's exactly what you need.
Minimum Credit Score by Loan Type (2026)
| Loan Type | Minimum Score | Ideal Score | Down Payment |
|---|---|---|---|
| FHA Loan | 500 (10% down) | 580+ (3.5% down) | 3.5-10% |
| Conventional Loan | 620 | 740+ | 3-20% |
| VA Loan | No official minimum | 620+ recommended | 0% |
| USDA Loan | 640 | 680+ | 0% |
| Jumbo Loan | 700 | 740+ | 20% |
How Credit Score Affects Mortgage Rate
On a $300,000 30-year mortgage:
| Credit Score | Estimated Rate | Monthly Payment | Total Interest |
|---|---|---|---|
| 760-850 | 6.5% | $1,896 | $382,560 |
| 700-759 | 6.7% | $1,932 | $395,520 |
| 680-699 | 6.9% | $1,968 | $408,480 |
| 660-679 | 7.2% | $2,040 | $434,400 |
| 640-659 | 7.6% | $2,124 | $464,640 |
| 620-639 | 8.1% | $2,231 | $502,560 |
The difference between 620 and 760: $335 more per month, $120,000 more over 30 years.
Should You Pay Off Debt Before Buying?
It depends on these factors:
Factor 1: Your Debt-to-Income Ratio (DTI)
Lenders require DTI under 43% (usually prefer under 36%).
```
DTI = Monthly Debt Payments / Gross Monthly Income
```
Example:
- Income: $6,000/month
- Car payment: $350
- Student loans: $200
- Mortgage: $1,800
- Total debt: $2,350
- DTI: 39% (borderline)
Use our Debt-to-Income Calculator to calculate yours.
Factor 2: Down Payment vs. Debt Payoff
| Scenario | Action |
|---|---|
| High-interest debt (18%+) | Pay off debt first |
| Low down payment savings | Save for down payment |
| DTI above 40% | Pay off debt first |
| Emergency fund < 3 months | Build emergency fund |
How to Improve Your Score for a Mortgage
6-12 Months Before Applying:
- Pay off credit card debt → Reduce utilization below 30%
- Don't open new credit → Avoid hard inquiries
- Dispute errors → Check your credit report at annualcreditreport.com
- Don't close old accounts → Keep credit history length
The Credit Score Boost Roadmap:
| Action | Score Improvement | Timeline |
|---|---|---|
| Pay down cards to 10% utilization | +40-100 points | 1-2 months |
| Fix errors on credit report | +20-50 points | 1-3 months |
| Add on-time payments (history) | +10-30 points | 6-12 months |
FHA vs. Conventional: Which Is Better?
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 500 (580 for 3.5% down) | 620 |
| Down payment | 3.5-10% | 3-20% |
| PMI | Required always | Required if <20% down |
| PMI cost | 0.5-1.5%/year | 0.2-2%/year |
| Best for | Lower credit scores | Higher credit, larger down payment |
The Bottom Line
| Your Score | Recommendation |
|---|---|
| 580-619 | FHA loan (if you must), but work on score |
| 620-679 | Qualify for conventional, but rates are high |
| 680-719 | Good rates, proceed with application |
| 720-759 | Excellent rates, great position |
| 760+ | Best rates available |
If your score is below 680, paying down debt for 6-12 months before applying will likely save you $50,000+ over the life of the loan.