Buying a house is one of the biggest financial decisions you'll ever make, and your credit score plays a starring role. It determines whether you qualify for a mortgage, what interest rate you'll get, and how much you'll pay over the life of the loan.
Here's what you need to know about credit score requirements for buying a home in 2026.
Minimum Credit Score to Buy a House
There's no single number that works for every situation. The minimum credit score depends on the type of mortgage you're applying for.
Conventional loans typically require a minimum score of 620. These are the most common type of mortgage and are backed by Fannie Mae and Freddie Mac. A higher score (740+) gets you the best interest rates.
FHA loans are backed by the Federal Housing Administration and are designed for borrowers with lower credit scores. You can qualify with a score as low as 500, but you'll need a 10% down payment. With a score of 580 or higher, you only need 3.5% down.
VA loans are available to veterans and active-duty military members. There's technically no minimum credit score set by the VA, but most lenders require at least 620.
USDA loans are for homes in eligible rural areas. Most lenders want a score of at least 640, though the USDA itself doesn't set a hard minimum.
How Your Credit Score Affects Mortgage Rates
Your credit score doesn't just determine whether you get approved — it directly affects your interest rate. Even a small difference in rate can cost you tens of thousands of dollars over a 30-year mortgage.
For example, someone with a 760 credit score might get a 6.5% rate on a $300,000 mortgage. Someone with a 640 score might get 7.5%. That 1% difference adds up to roughly $70,000 more in interest over 30 years.
The lesson is clear: improving your credit score before applying can save you serious money. Understanding credit score ranges helps you know where you stand relative to lenders' requirements.
How to Improve Your Score Before Applying
Pay down existing debt. Lowering your credit utilization is one of the fastest ways to boost your score. Try to get credit card balances below 10% of your limits.
Don't open new credit accounts. Each new application results in a hard inquiry and lowers your average account age. Avoid new credit cards or loans in the 6 to 12 months before applying for a mortgage.
Dispute any errors on your credit report. Check your credit score for free and review all three credit reports for mistakes. If you need help with disputes, Dovly uses AI to automate the process, and Lexington Law is one of the most established credit repair firms. Read our Dovly review and Lexington Law review to compare.
Keep old accounts open. The length of your credit history matters. Don't close old credit cards, even if you're not using them regularly.
Make every payment on time. Payment history is the biggest factor in your score. Set up autopay to make sure nothing slips through the cracks.
What If Your Score Isn't High Enough Yet?
Don't rush into a mortgage with a low credit score just because you can technically qualify. A few months of credit building can dramatically improve your rate and save you thousands.
The Self Visa® Credit Card adds positive payment history and reports to all three bureaus. The Kikoff Credit Account requires no credit check and no hard inquiry—important when you're trying to minimize inquiries before a mortgage application. Read our Self review and Kikoff review for details. Even a 20 to 40 point increase can move you into a better rate tier. Understanding how credit scores are calculated will help you prioritize the right improvements.
Kikoff Credit Account
Kikoff Credit Account
Everything you need to build your credit, right in one app. Build credit, lower debt, and unlock progress with tools that actually work.
Loan Amount
$750-$3,500 depends on the plan
Term
12 months
APR
0%
Admin Fee
$0
Monthly Fee
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Credit Check
No
Average Score Increase
An avg increase of +86 points within a year with on-time payments
The Bottom Line
While you can buy a house with a credit score as low as 500 (with an FHA loan), aiming for 680 or higher will give you far more options and better rates. Take the time to build your credit before applying — your future self will thank you.
Frequently Asked Questions
Can you buy a house with a 580 credit score?
Yes, you can qualify for an FHA loan with a 580 score, but you'll need at least 3.5% down. Conventional loans typically require 620 or higher. With a 580 score, you'll have fewer lenders willing to work with you and you'll pay higher interest rates than someone with better credit.
What's the best type of loan for someone with low credit?
FHA loans are generally the most accessible for lower credit scores since they allow scores as low as 500 and require less down payment. If you can improve your score to 620 or above, conventional loans offer better rates and terms. USDA loans are excellent if you're buying in a rural area.
How much does a 1% difference in interest rate actually cost?
On a $300,000 mortgage over 30 years, a 1% rate difference costs roughly $70,000 in additional interest. Even a 0.5% difference amounts to about $35,000 extra. This is why waiting a few months to improve your score can save significant money.
Should you wait to improve your credit before buying a house?
In most cases, yes. Spending 3 to 6 months improving your score can easily save you $10,000 to $20,000 in interest over the life of the loan. The exception is if you're in a rapidly rising market where home prices are increasing faster than you can improve your credit.
