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 is specifically designed to optimize your credit profile for a home loan — including rapid rescore coordination and a lender-ready credit report review.