What credit score do you need to buy a house?
In this article
There is no single credit score you need to buy a house. It depends on the loan. An FHA loan allows scores as low as 500 with 10 percent down, or 580 and up with 3.5 percent down. Conventional loans that are manually underwritten for Fannie Mae need at least 620 on a fixed rate, and VA does not set a minimum at all, though your lender will.
What is the minimum credit score for each type of home loan?
Here are the minimums from the agencies that set the rules, all checked Sept. 27, 2026. Lenders can ask for higher scores than these, so treat them as the floor, not a promise of approval.
Loan type | Minimum credit score set by the rule-maker | Source |
|---|---|---|
FHA, 3.5% minimum investment | 580 or higher | HUD Handbook 4000.1 |
FHA, 10% minimum investment | 500 to 579 | HUD Handbook 4000.1 |
FHA, below 500 | Not eligible | HUD Handbook 4000.1 |
Conventional (Fannie Mae), manually underwritten, fixed rate | 620 | Fannie Mae Selling Guide B3-5.1-01 |
Conventional (Fannie Mae), manually underwritten, adjustable rate | 640 | Fannie Mae Selling Guide B3-5.1-01 |
Conventional (Fannie Mae), run through Desktop Underwriter | No set minimum | Fannie Mae Selling Guide B3-5.1-01 |
VA | No VA minimum; lender sets its own | VA |
Let's walk through each one.
What credit score do you need for an FHA loan?
FHA loans are insured by the U.S. Department of Housing and Urban Development (HUD). HUD Handbook 4000.1 (last revised Aug. 12, 2026; checked Sept. 27, 2026) sets the rules:
580 or higher: you are eligible for maximum financing. For a purchase, HUD's maximum loan-to-value is 96.5 percent, and you must put in at least 3.5 percent.
500 to 579: your loan-to-value is capped at 90 percent. That means you need to put in at least 10 percent.
Below 500: you are not eligible for an FHA-insured loan.
HUD measures these percentages against the "Adjusted Value." For a purchase, that is the lower of the purchase price (minus any inducements to purchase) or the property value.
EXAMPLE ONLY: $350,000 purchase price, property value also $350,000, no inducements. Base loan before any financed FHA upfront premium. Closing costs are not included.
Your FHA credit score | Maximum loan-to-value | Largest base loan | Least you put in |
|---|---|---|---|
580 or higher | 96.5% | $337,750 | $12,250 |
500 to 579 | 90% | $315,000 | $35,000 |
Below 500 | Not eligible | Not eligible | Not eligible |
In this example, a score under 580 means bringing $22,750 more to the table. That is why moving from 570 to 580 can matter so much for an FHA buyer.
How does HUD pick which credit score counts?
HUD calls it the Minimum Decision Credit Score. If you have three scores, it uses the middle one. If you have two different scores, it uses the lower one. If you have only one, that is the one it uses. When two or more people are on the loan, HUD uses the lowest of those scores among all the borrowers.
So if you apply with a partner, the lower score in the pair is the one that sets the rules.
What credit score do you need for a conventional loan?
For conventional loans sold to Fannie Mae, the Selling Guide, section B3-5.1-01 (dated April 22, 2026; checked Sept. 27, 2026) says:
Manually underwritten loans: a minimum score of 620 for fixed-rate loans and 640 for adjustable-rate loans.
Loans run through Desktop Underwriter (DU), Fannie Mae's automated system: a minimum credit score is not required. DU assesses your creditworthiness using its own risk factors.
That DU rule does not mean any score will do. Fannie Mae says DU does its own analysis of your credit report data. Separately, lenders can set their own higher minimums. Your score also affects your cost. The same Fannie Mae section says loan-level price adjustments, which are pricing add-ons, are based on your credit score along with other loan features.
What credit score do you need for a VA loan?
The VA home loan overview (checked Sept. 27, 2026) says plainly: "VA does not require a minimum credit score; however, lender may set a credit score limit." The VA purchase loan page (checked Sept. 27, 2026) adds that you must meet both VA's and your lender's standards for credit, income and other requirements.
In practice, that means the lender you pick decides. Different lenders can have different minimums, so it can pay to ask more than one.
How does your credit score change your mortgage rate?
Qualifying is only half the story. You do not have just one score, and the CFPB says most scores range from 300 to 850. The CFPB (both checked Sept. 27, 2026) also says higher credit scores make you eligible for lower interest rates. It also says most mortgage lenders look at your scores from all three major credit reporting companies and use the middle score to decide what rate to offer.
The CFPB's homebuying prep guide (checked Sept. 27, 2026) says there are no firm rules, but in general:
The lowest rates go to borrowers with scores in the mid- to high-700s or above.
Borrowers with scores from 680 to 740 typically pay somewhat higher rates.
Borrowers with scores from 620 to 680 generally pay the highest rates and have the fewest choices. The CFPB says government programs like FHA, VA and USDA may be a good option for them.
Borrowers below 620 generally have trouble qualifying and may want to improve their credit first.
How can you raise your credit score before you buy?
The CFPB's prep guide says that if you do not plan to buy for at least six months, you may be able to improve your scores and get a better rate. Its tips:
Pay your bills on time, every time.
Pay down credit card debt.
Do not close unused cards unless they carry an annual fee.
Check your credit reports for errors and dispute any you find. Checking your own credit will not hurt your scores.
Be careful of companies that charge up-front fees to "fix" your credit. The CFPB says these are often scams.
A HUD-approved housing counselor can help you review your credit report. The CFPB lists 1-800-569-4287 to find one.
What this means for new-construction buyers
Buying a home that is still being built adds time, and time matters for credit.
Fannie Mae's Selling Guide, section B1-1-03 (checked Sept. 27, 2026) says that for all loans, "existing and new construction," credit documents must be no more than four months old on the note date. If they are older, the lender must update them. On a longer build, expect your lender to check your credit again before closing.
That makes the months between contract and closing important:
Hold off on new credit. The CFPB warns against a car loan, big credit card purchases or new cards in the months before you buy. That includes furniture and appliances for the new house.
Keep paying everything on time. It is the CFPB's first tip for improving your credit, and it matters most before the lender's second look.
Ask about lender and builder offers early. Offers change often, so call 561-704-0091 for today's numbers.
National House Search is builder-neutral. We can help you compare new homes from different builders and plan your timeline around your credit, not the other way around.
Common Questions
Can I buy a house with a 500 credit score?
Possibly, with an FHA loan. HUD Handbook 4000.1 says a score of 500 to 579 limits you to a 90 percent loan-to-value, so you need at least 10 percent down. Below 500, you are not eligible for FHA.
What credit score do I need for 3.5 percent down?
For an FHA loan, 580 or higher. HUD Handbook 4000.1 says that score makes you eligible for maximum financing, with a minimum investment of 3.5 percent on a purchase.
Is 620 the minimum for a conventional loan?
For manually underwritten fixed-rate loans sold to Fannie Mae, yes, and it is 640 for adjustable-rate loans. Loans run through Fannie Mae's Desktop Underwriter have no set minimum score, but lenders can set their own.
Does the VA require a minimum credit score?
No. The VA says it does not require a minimum credit score, but your lender may set one. Ask each lender you talk to what its minimum is.
Which of my three credit scores do lenders use?
The CFPB says most mortgage lenders use the middle of your three scores. For FHA loans, HUD uses the middle of three, the lower of two, and the lowest score among all borrowers.
Will my credit be checked again before closing on a new build?
It may be. Fannie Mae says credit documents must be no more than four months old on the note date for new construction too. On a longer build, the lender may need to update your credit before closing.
Ready to take the next step?
Call 561-704-0091 to talk with a National House Search specialist, or Schedule a visit.
Related reading: Buying a new-construction townhome for the first time · 2-1 buydown explained · Condo vs. townhouse vs. single-family home
This is general information, not financial, tax or legal advice. Figures checked September 27, 2026.