If you have ever typed "how much credit score do I need to buy a house" into a search bar, you are not alone. First-time buyers are some of the most anxious searchers out there, and the answer is not as scary as it looks. In 2026, you can qualify for a mortgage with a score as low as 500 in some cases. But what you qualify for and what gives you a good rate are two different things.
Here is what lenders actually look for and how to prepare before you apply.
The Short Answer
Minimum credit scores in 2026 by loan type:
- FHA loan: 580 with 3.5% down, or 500 to 579 with 10% down (see FHA loan credit score requirements for details)
- Conventional loan: 620 minimum, 660+ preferred
- VA loan: 580 to 620 depending on the lender (the VA itself sets no minimum)
- USDA loan: 640 minimum for most lenders
- Jumbo loan: 700 to 740+ depending on loan size
You can get approved at these minimums. But getting approved and getting a great rate are not the same thing. The best rates in 2026 go to borrowers with a 750 credit score or higher.
Why Your Score Matters So Much
On a $300,000 30-year mortgage, the difference between a 620 score and a 760 score can be more than 1.5 percentage points. That is roughly $250 more per month, or about $90,000 extra in interest over the life of the loan. A score bump of 40 to 60 points before you apply can literally save tens of thousands of dollars.
That is why it pays to wait a few months and work on your credit before house hunting, even if you technically qualify today.
Loan Types Explained
FHA Loans
FHA loans are backed by the Federal Housing Administration and are the most popular choice for first-time buyers. With a 580 score, you can put just 3.5% down. With a 500 to 579 score, you need 10% down, and many lenders will not go that low even though FHA rules allow it. See minimum credit score for an FHA loan for the exact thresholds lenders use.
FHA loans also come with mortgage insurance premiums that do not drop off automatically, so factor that into your monthly payment.
Conventional Loans
These are loans not backed by a government program. Most require 620 minimum. Fannie Mae and Freddie Mac programs like HomeReady and Home Possible offer 3% down for first-time buyers with a 620 score and income below certain limits. If your score is 680+ you get better rates, and at 740+ you get the best pricing. Even borrowers at the low end can have options; see buying a home with a 600 credit score for what that actually looks like.
Unlike FHA, if you put 20% down or reach 20% equity later, you can drop private mortgage insurance.
VA Loans
For active-duty military, veterans, and some surviving spouses, VA loans are extraordinary. No down payment, no mortgage insurance, and competitive rates. The VA does not set a credit minimum, but most lenders want 580 to 620.
USDA Loans
For homes in eligible rural and some suburban areas, USDA loans offer 0% down with a 640 score. Income limits apply.
How to Raise Your Score Before Applying
If your score is below 680, a few months of focused work can move it 30 to 80 points. Here is how.
Check Your Reports for Errors
Pull free reports at AnnualCreditReport.com. Roughly 1 in 5 reports contain a material error. Dispute anything that is wrong. If you would rather not DIY, a service like Dovly can automate disputes for you.
Lower Credit Card Utilization
Utilization is the second-biggest factor in your credit score calculation. Lenders like to see balances under 30% of your limit, and under 10% is ideal. Pay cards down before the statement closes so a lower balance is what gets reported.
Open a Credit-Builder Product
If your file is thin or your score is below 640, adding a positive tradeline can help. The Self Visa® Credit Card is a secured card that reports to all three bureaus and pairs with a credit-builder account. Other options include the Kikoff Secured Credit Card and the Current Build Card. The goal is one more account showing on-time payments each month.
Avoid New Credit 12 Months Before Applying
Hard inquiries and brand-new accounts can lower your score by a few points and raise red flags with mortgage underwriters. Do not open any new cards, car loans, or store credit in the year leading up to your application.
Pay On Time, Every Time
Payment history is 35% of your score. Set up auto-pay for at least the minimum on every account. A single 30-day late payment can cost 60 to 100 points and kill a mortgage pre-approval.
Keep Old Accounts Open
Length of credit history matters. Even if you do not use an old credit card, keep it open with a small recurring charge and auto-pay in full.
Other Things Lenders Look At
Credit score is only part of the picture. Mortgage underwriters also review:
- Debt-to-income ratio: Total monthly debt payments divided by gross monthly income. Most lenders want this under 43%, with 36% or less being ideal.
- Employment history: Two years of steady income is standard.
- Down payment and reserves: Some lenders want to see 2 to 6 months of mortgage payments in savings.
- Property type: Condos, manufactured homes, and fixer-uppers can have stricter credit requirements.
You can have a great score and still be denied if your DTI is too high or your job history is choppy.
A Realistic Timeline
If you are starting at 580, a realistic plan looks like this: spend 6 to 12 months paying down balances, adding one credit-builder tradeline, disputing errors, and keeping every payment on time. Most people in that situation can reach 660 to 700 in a year. That alone may qualify you for better conventional loan pricing and save thousands in interest.
Frequently Asked Questions
Can I buy a house with a 580 credit score?
Yes. A 580 score qualifies you for an FHA loan with 3.5% down. You can also explore VA loans if you are eligible. The trade-off is a higher interest rate, so expect to pay more per month than a buyer with a 700+ score.
Do lenders use FICO or VantageScore for mortgages?
Mortgage lenders almost always pull FICO scores, specifically the older FICO 2, 4, and 5 models from all three bureaus. They typically use the middle score or the lower of two borrowers' middle scores. Free scores on apps are often VantageScores and can be 20 to 40 points different from the score your lender sees.
How long does it take to raise my credit score?
You can see small changes in 30 to 45 days. Meaningful jumps of 40 to 80 points usually take 4 to 12 months of consistent on-time payments and lower utilization.
Should I pay off all my debt before buying a home?
Not necessarily. Paying down credit cards helps a lot. But paying off an installment loan right before applying can actually drop your score temporarily. Talk to your loan officer before making a big move in the 60 days before you apply.
