What Credit Score Do You Need to Buy a House?

Your credit score is one of the biggest factors in your mortgage — it determines whether you qualify at all, and at what interest rate. Different loan types have different minimums, and lenders often add their own "overlay" requirements above those minimums. Here's what you need to know about credit score requirements, how your score affects your rate, and what you can do if your score needs work.

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Key Facts at a Glance
Conventional minimum
620 (740+ for best rates)
FHA minimum
580 (3.5% down) / 500 (10% down)
VA minimum
No official minimum (most lenders: 620)
Jumbo minimum
700–720 (740+ preferred)
Best rate threshold
760+

Frequently Asked Questions

How much does my credit score affect my mortgage rate?
Significantly. Using Fannie Mae's LLPA (loan-level price adjustment) grid, going from a 680 to a 760 credit score can reduce your rate by 1.0–1.5%. On a $300,000 loan at 30 years, a 1% rate difference means about $170/month — or $61,000 over the life of the loan. Use the Rate Determination tool in NestCalcs to see exactly how your score maps to a rate.
700+ gets you approved for most loan programs at reasonable rates. 720+ starts to enter the competitive rate tiers. 740+ is where Fannie Mae pricing significantly improves. 760+ is the top tier — you'll get the best rates available for your LTV and loan type. Scores below 680 cost measurably more.
Paying down credit card balances below 30% utilization can raise your score 20–50 points within 1–2 billing cycles. Disputing errors on your credit report can also yield fast improvements. Negative items like late payments, collections, or bankruptcies take longer — typically 12–24 months of consistent positive behavior.
Not necessarily. Lenders care most about your DTI and payment history, not your total balance. Paying down revolving debt (credit cards) helps your score by reducing utilization. Paying off installment loans (car, student loans) has less credit score impact but reduces your DTI, which can increase how much you can borrow.
Mortgage applications trigger a hard inquiry, which can lower your score 5–10 points temporarily. However, credit scoring models (FICO and VantageScore) count multiple mortgage inquiries within a 14–45 day window as a single inquiry — so shopping multiple lenders in a short period has minimal additional impact. Don't apply for new credit cards or loans in the 3–6 months before applying for a mortgage.
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