“What Credit Score Do You Really Need to Buy a Home?”

Susie Braskett
Oct 7
2 min read

Buying a home is one of life’s biggest milestones—but before you start scrolling through listings, it’s important to know where your credit stands. Your credit score doesn’t just affect whether you’ll be approved for a mortgage—it can also determine your interest rate, loan terms, and how much you’ll pay over time.

Understanding the Basics

Most lenders use the FICO® score, which ranges from 300 to 850. The higher your score, the lower the risk for the lender, and the better your chances of qualifying for favorable rates.

Here’s a quick breakdown:

Excellent (740–850): You’ll likely qualify for the best rates and flexible loan options.
Good (700–739): You’re in a strong position for approval with competitive interest rates.
Fair (620–699): You can still get a mortgage, but expect slightly higher rates or stricter requirements.
Poor (below 620): You might need to improve your score or look into government-backed loans like FHA or VA.

Loan Type Requirements

Conventional loans: Typically require at least a 620 credit score.
FHA loans: Designed for first-time buyers, can go as low as 580 (or even 500 with a larger down payment).
VA loans: Often have no minimum score requirement, but lenders may prefer 620 or higher.
USDA loans: Usually look for scores above 640 for streamlined approval.

Improving Your Score

If your score isn’t where you want it to be, here are a few simple steps to boost it:

Pay down credit card balances.
Avoid opening new credit lines before applying.
Check your credit report for errors and dispute inaccuracies.
Make all payments on time—every time.

The Bottom Line

You don’t need a perfect score to buy a home—but understanding your credit profile helps you plan strategically and save money in the long run. With the right preparation and guidance, you could be unlocking your front door sooner than you think.