Credit score to buy a house: Minimums by loan type

Securing the right credit score to buy a house is one of the most impactful steps you can take on your journey to homeownership. Your score gives lenders a clear snapshot of your financial reliability, directly influencing your loan eligibility and interest rates. Whether you have a robust credit history or you’re working to rebuild your standing, understanding minimum score requirements across different mortgage programs empowers you to make confident, informed choices.

Key takeaways:

• Minimum credit score requirements vary significantly by mortgage type, starting at 500 for select FHA loans and ranging up to 700+ for jumbo loans.¹
• Higher credit scores unlock better interest rates, lower monthly payments, and lower private mortgage insurance (PMI) costs.
• Lenders look at your entire financial profile, meaning strong income, low debt-to-income (DTI) ratios, and solid cash reserves can help balance out lower scores.

What’s the minimum credit score to buy a house?

The minimum credit score needed to purchase a home depends entirely on the mortgage program you select and the guidelines established by individual lenders. While major agencies like Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) establish foundational benchmarks, mortgage lenders can set their own minimum credit score standards (often called lender overlays) based on their assessment of credit risk.

Conventional loan credit score requirements

Traditionally, conforming conventional loans backed by Fannie Mae and Freddie Mac required a minimum FICO^® Score of 620. However, automated underwriting system enhancements implemented in November 2025 eliminated this fixed baseline score requirement for conforming loans. Instead of relying strictly on a rigid credit score barrier, automated systems evaluate a borrower's complete financial picture under federal Ability-to-Repay standards. While many lenders still use 620 as a general operational threshold, approval now depends on a holistic risk assessment balancing credit history, down payment, debt-to-income ratio (DTI), and cash reserves.

FHA loan credit score requirements

FHA loans are government-backed mortgages designed to expand access to homeownership, offering more flexible credit guidelines than standard conventional loans. Under federal FHA guidelines, borrowers with a credit score of 580 or higher may qualify for a mortgage with a down payment of just 3.5%. If your score falls between 500 and 579, FHA guidelines permit qualification with a 10% down payment. Rocket Mortgage accepts credit scores down to 580 on FHA loans with a 3.5% down payment.

VA loan credit score requirements

Guaranteed by the Department of Veterans Affairs, VA loans offer incredible benefits, including 0% down payment options and competitive rates, for eligible active-duty service members, reservists, veterans, and surviving spouses. The VA doesn’t set an official minimum credit score requirement for VA loans. However, private lenders establish their own score baselines to manage risk, with many industry lenders requiring a 620. Rocket Mortgage offers VA loans for qualifying clients with credit scores as low as 580.

USDA loan credit score requirements

Backed by the U.S. Department of Agriculture, USDA loans help low- to moderate-income buyers purchase homes in designated rural and suburban areas with no down payment. Similar to VA loans, the USDA does not impose a mandatory government-wide minimum credit score. Most lenders participating in the program require a score of 640 or higher to utilize streamlined automated underwriting processing. Rocket Mortgage does not offer USDA loans at this time.

Jumbo loan credit score requirements

Jumbo loans are nonconforming mortgages that exceed the annual loan limits set by the Federal Housing Finance Agency (FHFA). Because these large loan amounts cannot be purchased or guaranteed by Fannie Mae or Freddie Mac, lenders absorb significantly higher financial risk. As a result, jumbo loans carry much stricter credit standards. Most lenders require a minimum credit score of 700 – 740+, along with low DTI ratios and substantial liquid asset reserves. Thinking about buying an investment property using a jumbo loan? Rocket Mortgage offers a Jumbo Smart loan with flexible rate options to finance homes up to $3.5 million.⁴

What’s a good credit score to buy a house?

When evaluating your mortgage application, lenders group credit scores into standard scoring ranges established by major credit reporting models. While you can secure home financing across multiple tiers, higher credit scores give you access to lower rates and broader program options.

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

Is 700 a good credit score to buy a house?

Yes, a 700 credit score falls comfortably within the "good" credit tier and positions you well for a mortgage. With a 700 score, you’ll easily meet the credit threshold for conventional, FHA, and VA loan programs. Lenders view a 700 score as a strong indicator of financial stability, allowing you to secure competitive interest rates and favorable loan terms.

What credit score gets the best mortgage rates?

To unlock the absolute best interest rates and lowest loan fees, home buyers generally need a credit score of 740 to 760 or higher. Lenders reserve their top-tier pricing for borrowers in the "very good" and "exceptional" ranges because these scores represent minimal default risk. For conventional loans, higher credit scores also significantly lower your monthly private mortgage insurance (PMI) premiums, saving you money both monthly and over the life of your loan.

Why your credit score matters when buying a house

Mortgage lenders view your credit score as a primary tool to measure financial responsibility and assess loan risk. Your score reflects years of debt management, repayment reliability, and overall credit interaction.

To evaluate your credit, lenders pull a tri-merge credit report combining files from the three major credit bureaus: Experian^®, Equifax^®, and TransUnion^®. Because each bureau collects information independently, your credit score may vary slightly across all three. Lenders typically use the median (middle) score among the three reporting agencies as your official qualifying credit score.

Your qualifying credit score impacts three fundamental areas of your mortgage:

• Loan program eligibility: Determining which mortgage products (conventional, FHA, VA, jumbo) you qualify for.
• Interest rates: Directing your interest rate tier, where higher scores yield lower interest rates and reduced monthly costs.
• Mortgage insurance costs: Influencing risk-based pricing for private mortgage insurance on conventional loans.

Major factors affecting your credit score

Credit scoring models rely on proprietary formulas, but credit bureaus weigh five main financial habits to calculate your score:

• Payment history (35%): Your track record of making on-time payments across credit cards, installment loans, and mortgages. Consistent on-time payments build a strong score, while late payments 30 days or more past due cause noticeable credit damage.
• Amounts owed / Credit utilization (30%): The total balance you owe across all credit accounts, specifically relative to your total revolving credit limits. Keeping revolving balances low relative to your limits shows lenders you manage credit responsibly.
• Length of credit history (15%): The average age of all your credit accounts and the age of your oldest active account. A longer history gives lenders more data to evaluate your long-term reliability.
• New credit (10%): The frequency of recent hard credit inquiries and newly opened accounts. Applying for multiple new lines of credit in a short window can temporarily lower your score.
• Credit mix (10%): The variety of credit accounts you maintain, including revolving lines (credit cards) and installment loans (auto loans, student loans, existing mortgages).

Can you buy a house with a lower credit score?

Having a lower credit score doesn't mean homeownership is out of reach. Modern underwriting guidelines look at your entire financial profile, allowing you to position your application strategically even with past credit hiccups.

Look into FHA loans

If your credit score sits in the ”fair” range (580 – 669), government-backed FHA loans provide an accessible avenue to homeownership. Because the government insures these loans against default, lenders can offer competitive terms and flexible credit requirements.

Strengthen other qualification factors

Lenders often evaluate compensating factors to offset a lower credit score. You can balance out a lower score by presenting strengths in other areas of your application:

• Larger down payment: Putting down 10% or 20% reduces the lender's overall risk.
• Low DTI ratio: Demonstrating that your total monthly debts consume a small percentage of your gross monthly income shows cash flow reliability.
• Substantial liquid reserves: Holding several months' worth of mortgage payments in savings or investment accounts offers reassuring financial back-up.

Consider a co-signer

Adding a creditworthy co-signer or co-borrower, such as a spouse or family member, can strengthen your mortgage application. A co-signer agrees to share legal responsibility for repaying the loan, allowing the lender to factor in their credit strength and income.

Credit scores for first-time home buyers

Navigating home financing for the first time brings unique questions, especially if you have a shorter credit history. Fortunately, loan programs and underwriting models account for first-time home buyer circumstances.

Is there a different minimum score for first-time buyers?

There are no separate, higher minimum credit score rules for first-time home buyers. First-time buyers must meet the standard credit thresholds established by specific loan programs (such as 580 for an FHA loan or general conventional risk standards). In fact, automated underwriting systems often view first-time home buyer status favorably, treating it as a positive mitigating factor when evaluating applicants with limited credit depth.

How first-time buyers can strengthen an application

First-time buyers with limited credit files can boost their overall profile by demonstrating solid financial stability. Documenting 12 consecutive months of on-time rent payment history provides tangible evidence of housing payment reliability. Furthermore, maintaining steady employment and accumulating savings for a down payment and closing costs demonstrates financial maturity.

How to increase your credit score before buying a house

Improving your credit score prior to submitting a mortgage application can yield significant interest savings. Implementing focused credit habits helps optimize your score over time.

Pay your bills on time

Because payment history accounts for 35% of your credit score, making every payment on or before its due date is essential. Setting up automatic payments for credit cards, utility bills, and student loans ensures you avoid late reports.

Pay off outstanding debts

Reducing your revolving credit balances directly lowers your credit utilization ratio. To maintain strong scores, financial experts recommend keeping your overall credit utilization below 30% of your total limit, with lower ratios providing even greater benefit.

For example, if you carry a $2,500 total credit card balance across accounts with a combined $10,000 credit limit, your utilization ratio is 25% ($2,500 / $10,000).

Limit new inquiries

When you apply for new credit cards or personal loans, lenders perform a hard credit pull, which can temporarily decrease your score by a few points. Avoid applying for new credit accounts in the months leading up to your mortgage application.

When shopping for a mortgage, loan inquiries within a 45-day window are bundled together as a single inquiry by credit bureaus, protecting your score while you compare rates.

Don’t close old accounts

Closing old credit accounts reduces your overall available credit limit and shortens the average age of your credit history. Even if you no longer use a specific credit card, keeping it open helps preserve your credit depth and utilization ratio.

Check your credit report for errors

Inaccuracies or fraudulent accounts on your credit report can artificially depress your score. Review your credit reports from all three bureaus regularly by visiting AnnualCreditReport.com. You can also track your score and review credit updates using the Rocket Money app.⁵ If you identify inaccurate information, file a dispute directly with the reporting credit bureau to have it corrected.

Qualification factors that lenders consider

Your credit score is a vital component of your mortgage application, but lenders evaluate several interrelated factors under federal guidelines.

Credit qualification factors

Beyond the credit score number itself, underwriters examine specific details within your credit report:

• Credit depth: Length and consistency of your historical credit activity.
• Delinquent accounts: Recent 30-, 60-, or 90-day late payments.
• Installment history: Performance on structured auto, personal, or student loans.
• Public records and collection accounts: Bankruptcies, foreclosures, tax liens, or active collection items.

Other factors lenders may look at

Lenders review non-credit financial metrics to ensure a comprehensive evaluation of your ability to repay:

• Down payment and equity: Generally speaking, the higher your down payment or home equity amount, the lower your interest rate will be.
• Debt-to-income (DTI) ratio: Total monthly debt obligations divided by gross monthly income.
• Housing expense ratio: Expected monthly housing costs relative to total gross income.
• Cash reserves: Available liquid funds remaining after closing.
• Property type and occupancy: It’s easier to qualify for homes you’ll be using as your primary residence than vacation homes or investment properties because you have the most motivation to make the payment when you need to make tough financial choices. Single-unit properties are often considered the least risky, followed by condos, co-ops, multiunit properties, and manufactured homes.
• Loan amortization: The way loans are paid off matters when judging risk level. Fixed-rate loans are considered a more reliable option than adjustable-rate ones.

FAQ

Here are the answers to some common questions about credit scores in the home buying process.

What credit score do I need to buy a $400,000 house?

Your home's purchase price does not change minimum credit score requirements, meaning you can qualify with a 580 for an FHA loan or meet conventional risk guidelines regardless of loan size. However, a $400,000 purchase price results in a higher loan amount, making higher credit scores beneficial to lower your monthly interest payment.

What credit score is needed for a $250,000 house?

Minimum credit score standards depend on the loan program you choose rather than the property price, starting at 580 for FHA loans or flexible conventional guidelines.

How can I get a 700 credit score in 30 days?

To raise your score quickly, focus on paying down revolving credit card balances below 30% utilization, disputing incorrect negative errors on your credit report, and avoiding any new credit applications.⁶

Can I buy a house with no down payment and a lower credit score?

Eligible military service members and veterans can use a VA loan to purchase a home with 0% down payment and flexible credit thresholds starting down to 580.

What’s changed in credit qualification for conventional mortgages?

In November 2025, Fannie Mae and Freddie Mac removed rigid automated credit score baseline minimums for conforming loans, allowing lenders to evaluate total credit risk holistically.

Does my credit score still matter?

Yes, your credit score remains essential because it directly impacts your interest rate, monthly loan payment, and mortgage insurance fees.

The bottom line: Credit score matters, but it’s not the only consideration

Your credit score is an essential component of the home buying process, but it is just one piece of your complete financial picture. Mortgage requirements vary significantly across conventional, FHA, VA, USDA, and jumbo loan products, offering pathways to homeownership across various credit levels. Higher credit scores unlock optimal interest rates and lower lifetime costs, but strong income, low DTI ratios, and cash reserves can help build a strong overall mortgage application. By monitoring your credit reports, practicing healthy financial habits, and exploring tailored loan options, you can move forward with clarity and confidence.

Ready to take the next step on your home buying journey? You can apply for a home loan online with Rocket Mortgage today.

¹Rocket Mortgage is not acting on behalf of FHA or HUD.

²To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12 months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

³ Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

⁴ Rate pricing and closing costs dependent on loan qualification requirements and factors including but not limited to credit, income, assets, down payment, product selection and loan amount. This is not a commitment to lend.

⁵ Rocket Mortgage, LLC, Rocket Homes Real Estate LLC, Rocket Card, LLC, RockLoans Marketplace LLC (doing business as Rocket Loans), and Rocket Money, Inc., are separate operating subsidiaries of Rocket Limited Partnership. Redfin Corporation is an affiliated business of Rocket Limited Partnership. Each company is a separate legal entity operated and managed through its own management and governance structure. Rocket Limited Partnership is an indirect, wholly owned subsidiary of Rocket Companies, Inc. (NYSE: RKT).

6 This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.