By the HomeAffordLab team · Last updated October 27, 2026
The minimum credit score to buy a house is 580 for an FHA loan with 3.5% down, or 500 with 10% down. Most lenders look for 620 or higher for a conventional loan, and VA and USDA lenders typically want around 620 and 640, even though those programs set no official minimum.
The minimum only gets you in the door. Your score also sets your interest rate and, with less than 20% down, your mortgage insurance cost. On a $300,000 loan, myFICO data from July 2026 shows a borrower with a 620 to 639 score paying about $171 more a month than one with a score of 780 or higher. This guide breaks down the requirements and shows what each score range costs.
Key takeaways
- FHA: 580 with 3.5% down, 500 with 10% down. Conventional: usually 620. VA: lenders often want 620. USDA: lenders often want 640.
- A higher score lowers both your rate and, on conventional loans, your PMI.
- On a $300,000 loan, the gap between the lowest and highest score bands is about $171 a month and $62,000 in interest over 30 years.
- Below about 680, an FHA loan is often cheaper than a conventional loan at the same rate.
In this guide: Minimum scores by loan type · How your score changes your rate · How your score changes PMI · Best loan for your score · How to raise your score · FAQ
FHA Loan Calculator
Monthly payment with FHA mortgage insurance (MIP), 2026 loan limits, and a side-by-side comparison with a conventional loan.
FHA vs. conventional loan
Same price and down payment. Conventional PMI is estimated from your credit band.
| FHA | Conventional |
|---|
Minimum credit score by loan type
| Loan type | Minimum score | Notes |
|---|---|---|
| FHA | 580 with 3.5% down; 500 with 10% down | Set by HUD. Many lenders require 600 to 640. |
| Conventional | Usually 620 | Fannie Mae removed its 620 floor for loans approved through its automated system in November 2025, but most lenders and mortgage insurers still use about 620. |
| VA | No VA minimum | Lenders generally like to see at least 620. |
| USDA | No USDA minimum | Lenders generally like to see at least 640. |
| Jumbo | Varies | Usually 700 or higher, with larger down payments and reserves. |
Lenders usually pull scores from all three credit bureaus and use the middle one. If you’re applying with a co-borrower, many lenders use the lower of your two middle scores.
How your credit score changes your mortgage rate
myFICO publishes average rates by score range. The July 2026 figures, as reported by Bankrate, for a $300,000 30-year fixed loan were:
| FICO score | APR | Monthly payment | Total interest over 30 years |
|---|---|---|---|
| 780–850 | 6.61% | $1,918 | $390,465 |
| 760–779 | 6.71% | $1,938 | $397,617 |
| 740–759 | 6.77% | $1,950 | $401,922 |
| 720–739 | 6.91% | $1,978 | $412,011 |
| 700–719 | 6.94% | $1,984 | $414,180 |
| 680–699 | 7.08% | $2,012 | $424,339 |
| 660–679 | 7.12% | $2,020 | $427,252 |
| 640–659 | 7.25% | $2,047 | $436,750 |
| 620–639 | 7.46% | $2,089 | $452,195 |
Moving from the 620–639 band to 740–759 lowers the payment by about $139 a month and saves about $50,000 in interest. Rates change every week, so use these figures for the size of the gaps, not as a quote.
How your credit score changes PMI
With less than 20% down on a conventional loan, your score matters twice, because PMI is priced by credit score too. Urban Institute data cited by Experian puts PMI with a small down payment at about 0.46% of the loan a year for scores of 760 and up, and about 1.50% for 620 to 639.
| Credit score | Annual PMI rate | Monthly PMI on a $337,750 loan |
|---|---|---|
| 760+ | 0.46% | $129 |
| 720–739 | 0.70% | $197 |
| 680–699 | 0.98% | $276 |
| 640–659 | 1.31% | $369 |
| 620–639 | 1.50% | $422 |
Combined with a higher rate, a lower score can add several hundred dollars a month to a low-down-payment conventional loan. See our PMI guide for every credit band and how to remove PMI.
Which loan is best for your credit score?
- 740 and up: Conventional loans usually win, with low PMI and the best rates.
- 680 to 739: Compare both. In our FHA comparison at the same 7.32% rate, conventional came out ahead over five years at 680 and above.
- 620 to 679: FHA is often cheaper, because its mortgage insurance costs the same at every score while PMI rises steeply.
- 580 to 619: FHA is usually the main option, with 3.5% down.
- 500 to 579: FHA with 10% down, if you can find a lender that accepts that range. Improving your score first may be worth the wait.
- Eligible veterans and service members: VA loans have no monthly mortgage insurance and often competitive rates, making them hard to beat at most scores.
Use the FHA loan calculator above to compare an FHA and a conventional loan for your exact credit band, price, and down payment.
How to raise your credit score before you apply
- Check your reports for errors. Get free reports from all three bureaus at AnnualCreditReport.com and dispute anything wrong, such as accounts that aren’t yours or late payments that were on time.
- Lower your credit card balances. Credit utilization, your balances divided by your limits, is one of the biggest score factors. Getting below 30%, and ideally below 10%, can raise your score within a month or two.
- Pay every bill on time. Payment history is the most important factor. Set up autopay for at least the minimum.
- Don’t open or close accounts right before applying. New credit adds hard inquiries, and closing old cards can raise your utilization.
- Ask your lender about a rapid rescore. If you pay down balances during the application, a lender can sometimes have your score updated within days instead of waiting for the next reporting cycle.
Shopping for a mortgage won’t hurt you much. Credit scoring models treat multiple mortgage inquiries within a short window, typically 14 to 45 days depending on the model, as a single inquiry, so compare several lenders.
Frequently asked questions
Can I buy a house with a 550 credit score?
Possibly, with an FHA loan and at least 10% down, but few lenders accept scores below 580. You’ll pay higher costs, so raising your score first can save a lot of money.
Which credit score do mortgage lenders use?
Mortgage lenders typically use FICO scoring models designed for mortgages, which can differ from the score shown in a banking or credit card app. Your lender will tell you which scores it pulled.
Is 700 a good credit score to buy a house?
Yes. A 700 score qualifies for every major loan type. You’ll pay a bit more than borrowers above 740, mostly through PMI if you put down less than 20%.
Does checking my own credit lower my score?
No. Checking your own credit is a soft inquiry and has no effect on your score.
The bottom line
You can buy a home with a score as low as 580, or 500 with 10% down, through FHA, and most conventional lenders start at 620. But every step up in your score lowers your rate and PMI, worth over $100 a month between the lowest and highest bands on a $300,000 loan. If you’re close to a cutoff, a few months spent paying down cards can pay off for decades.
Estimates only. HomeAffordLab is not a lender and does not provide financial advice. This page may contain ads. See our Advertising Disclosure.
Sources: Bankrate: What is a good credit score to buy a house? (July 31, 2026; myFICO rate data) · Experian: PMI cost by credit score (Urban Institute data) · HUD (FHA credit requirements) · AnnualCreditReport.com