Credit And House Mortgage


What Credit Score Do You Need to Buy a House?

What is the minimum credit score required to buy a house? It all depends on the type of mortgage you get.

Credit score ranges include poor, fair, good, very good, and exceptional. Here are the most common types of mortgages and the credit score range you need for each one.

Credit Score Needed to Get a Conventional Mortgage

Are you trying to get a conventional mortgage? Traditionally, you should shoot for a credit score of at least 620.

That does not mean you should stop trying to increase your score once you break through that ceiling. A credit of 620 is considered right in the middle of the “fair” category. To get the best rates a lender can offer, try to raise your score to a higher range.

If you increase your credit to at least 670, it will put you in the “Good” credit range. This makes it more likely for you to get a better mortgage rate. If you increase your credit to 740, you will be in the “Very Good” credit range, and your chance of securing the best rate from your lender will increase even more.

What Credit Score Do You Need for a VA Loan?

VA stands for Veterans Affairs. VA loans are available for eligible active or retired military. These loans are different from the rest because they don’t technically have a required minimum credit score. That said, many private lenders still enforce their own credit minimums in order to accept these types of loans. Generally, for these loans, lenders enforce a minimum credit of 620, for a conventional loan.

If you’re a military service member or veteran interested in getting a VA loan, the best thing to do is reach out to your lender and ask what kind of credit score they want to see.

Credit Score to Get an FHA Loan

FHA stands for Federal Housing Administration. Like VA loans, FHA loans are different from the rest. FHA loans actually have two different minimum credit scores.

The FHA mortgage is designed to make homeownership easier for people by reducing potential loan-to-value ratios, making them available to more people. These loans open the door for people without great credit or a lot of money to get their own house and get out of a rental.

FHA loans can be greatly affected by the down payment you put on a home. The larger your down payment, the larger your chance is of getting a home with a lower credit score. That’s why having a bigger down payment can help you buy the home even if your credit is less than 580.

If you plan on putting down 3.5% on the purchase price of the home, your minimum score for an FHA loan is 580. It may not sound like there’s a big gap between that and the 620 for a conventional loan, but you may be surprised. At the very least, it allows for someone to purchase a home faster instead of having to wait for their score to reach 620 or more.

If you put down 10% of the property purchase price some lenders may let you buy a home with a credit score minimum of just 500 while others may still require a minimum score of 580 on an FHA loan, it just depends.


When it comes to buying a home, it’s important to find the right mortgage loan option for your credit score. If you have questions about mortgage options, what credit score is needed to buy a house, or how to boost your credit, we’re here to help. Give us a call at (844) 824-5626


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