When planning to buy a home, one of the most common questions people ask is: what credit score do you need to qualify for a mortgage?
While your score is a key factor, it’s not the only one. Lenders also evaluate income, job history, and total debt. This guide breaks down the credit score to buy a house, including both FHA and conventional loan requirements, and what else affects your approval chances.
Conventional Mortgage Credit Score Requirements
Conventional mortgages come from private banks and lenders without federal insurance backing. Because these lenders take on more risk, they require higher credit scores.
- Minimum qualifying score: 620
- Good rates usually start: 720
- Excellent rates: 760+
A score around 620 may get you in the door, but interest rates will be higher. Reaching 720 or above unlocks much better terms, while 760 generally ensures access to the best rates from nearly all lenders.
Mortgage lenders use a specialized version of the FICO mortgage score, which is often slightly lower than the FICO 8 or FICO 9 score shown on credit-monitoring apps.
If your app shows a 735, your true mortgage score might be closer to 720. To know exactly where you stand, you can order your FICO mortgage scores directly from MyFICO.com.
How Lenders Use Multiple Credit Scores
Each borrower has three main credit reports — Experian, Equifax, and TransUnion — and each has its own score.
When applying for a mortgage, the lender pulls all three and takes the middle score, ignoring the highest and lowest.
If two people apply jointly, the lender uses the lower middle score between both applicants.
That means even if one person has excellent credit, the weaker borrower’s score will determine the rate.
If there’s a large difference between the two, consider applying under the stronger profile if income allows.
FHA Mortgage Credit Score Requirements
FHA loans (Federal Housing Administration-backed) are designed for buyers with limited credit history or lower scores. Because they’re insured, lenders take less risk and can offer more flexible terms.
- Minimum score (3.5% down payment): 580
- Minimum score (10% down payment): 500
While FHA loans make homeownership accessible, they typically come with higher interest rates and mortgage insurance premiums that raise monthly costs.
Even though FHA standards allow scores as low as 500, many banks prefer applicants at 580 or higher. Some lenders set stricter minimums based on internal risk policies.
If you can raise your score to 620+, you’ll often qualify for both FHA and conventional options — giving you better flexibility and lower rates.
Beyond Credit Score: Debt-to-Income Ratio (DTI)
Credit score is just one piece of the mortgage puzzle. Another major factor is your debt-to-income ratio (DTI) — the percentage of your gross monthly income used for fixed payments like loans and credit cards.
Example:
- Gross income: $5,000 per month
- Mortgage payment: $1,500
- Car loan: $300
- Credit cards: $200
Total fixed payments: $2,000
$2,000 ÷ $5,000 = 40% DTI
Most lenders prefer a DTI below 43%, though some will approve slightly higher ratios for strong credit profiles.
A DTI closer to 30–35% is ideal, offering more comfort and better approval odds.
Other Factors Lenders Consider
Besides your credit score to buy a house and DTI, lenders also review:
- Employment stability (consistent work history)
- Income verification
- Payment history (no 30- or 60-day late payments in the last year)
- Outstanding debts or charge-offs
- Bankruptcies or foreclosures (usually must be 5+ years old)
Even with a qualifying score, issues like unpaid collections, tax liens, or recent bankruptcies can still delay or block approval.
FHA vs. Conventional: Which Should You Choose?
| Type | Minimum Credit Score | Down Payment | Pros | Cons |
|---|---|---|---|---|
| Conventional | 620 | 3%+ | Lower long-term cost, no FHA insurance | Harder to qualify |
| FHA | 580 (3.5% down) | 3.5%–10% | Easier approval, smaller down payment | Higher insurance & rates |
If your credit score is under 620, start with FHA. But once you reach 680–720, conventional loans usually save thousands over the life of the mortgage.
How to Prepare Before Applying
- Check all three credit reports for errors using AnnualCreditReport.com.
- Pay down high credit card balances to lower utilization.
- Avoid new credit applications three months before applying.
- Settle any outstanding debts to clean up your report.
- Build extra savings — lenders like to see cash reserves.
Preparing early gives you leverage and peace of mind when the time comes to apply.
Final Thoughts: Credit Score Needed to Buy a House
In most cases:
- Conventional loan minimum: 620
- Best rates: 720–760
- FHA loan minimum: 580 (with 3.5% down)
Remember, even with the right credit score to buy a house, lenders look at the complete picture — income, stability, debt levels, and payment history.
A balanced profile beats a high score alone. If your credit isn’t perfect, focus on reducing debt and building consistency; the higher your score, the lower your cost of borrowing.
For detailed mortgage guides and calculators, visit Consumer Financial Protection Bureau’s mortgage resources.
Pravin is a tech enthusiast and Salesforce developer with deep expertise in AI, mobile gadgets, coding, and automotive technology. At Thoughtsverser, he shares practical insights and research-driven content on the latest tech and innovations shaping our world.
