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

Jeana Beech
Jul 1
2 min read

If you're thinking about buying a home, one of the first questions that might come to mind is:“Do I have a good enough credit score?”

The truth is, you don’t need perfect credit to become a homeowner—but your credit score will play a major role in the type of loan you qualify for, the interest rate you receive, and how much house you can afford.

Let’s break it down:

Credit Score Basics

Credit scores typically range from 300 to 850. Here's how lenders generally view them:

300–579: Poor
580–669: Fair
670–739: Good
740–799: Very Good
800–850: Excellent

Minimum Credit Scores by Loan Type

FHA Loans (First-Time Buyer Friendly)

Minimum Score: 580
Allows as little as 3.5% down.
If your score is between 500–579, you may still qualify with a 10% down payment, but fewer lenders offer these.

Conventional Loans

Minimum Score: 620
Higher scores unlock lower interest rates and better terms.

VA Loans (For Veterans & Military)

No official minimum, but most lenders prefer at least 620.
No down payment required.

USDA Loans (Rural & Suburban Areas)

Minimum Score: 640 for streamlined processing.
No down payment required.

Why Credit Score Matters

Your credit score affects more than just loan approval—it also impacts:

Your interest rate (even a small difference can save or cost thousands over the life of your loan)
Your monthly payment
Mortgage insurance costs
Loan options available to you