What Credit Score Do You Need to Buy a House?

Your credit score is one of the most important factors in getting approved for a mortgage — and it directly affects the interest rate you'll pay. Here's exactly what lenders look for by loan type.

Minimum Score Requirements by Loan Type

FHA Loan (Federal Housing Administration)

• 580+ — Eligible for 3.5% down payment
• 500–579 — May still qualify but requires 10% down
• Best option for first-time buyers rebuilding credit

Conventional Loan

• 620 minimum for most lenders
• 740+ gets you the best interest rates
• Requires private mortgage insurance (PMI) if less than 20% down

VA Loan (Veterans Affairs)

• No official minimum — but most lenders want 620+
• No down payment required
• No PMI — one of the best loan products available

USDA Loan (Rural Development)

• 640+ recommended for streamlined approval
• For eligible rural and suburban areas
• No down payment required

What Else Do Mortgage Lenders Look At?

Your credit score is crucial — but lenders also evaluate:

• Debt-to-Income Ratio (DTI): Most lenders want DTI below 43%
• Employment history: 2 years of stable employment preferred
• Down payment: More down = better terms
• Assets and reserves: 2–3 months of mortgage payments in savings

How to Get Mortgage-Ready Fast

1. Pull your credit reports and dispute any inaccuracies
2. Pay down credit card balances below 30%
3. Avoid opening any new accounts in the 6 months before applying
4. Don't close old accounts — length of history matters
5. Consider a rapid rescore through your lender to update your score before closing

The CreditGM Mortgage Ready Plan

If you're working toward homeownership, our Mortgage Ready Plan ($199/month) is specifically designed to optimize your credit profile for a home loan — including rapid rescore coordination and a lender-ready credit report review.