Credit Score Requirements by Loan Type
There is no single answer to "what credit score do I need to buy a house?" because different loan programs have different standards — and individual lenders can set their own minimum requirements above the program minimums. Here is a complete breakdown:
Conventional Loans
- Minimum: 620 (most lenders)
- Good rates: 680+
- Best rates: 740-760+
- Notes: Score has significant impact on pricing. Fannie Mae and Freddie Mac use loan-level price adjustments (LLPAs) that directly translate credit score into rate/fee differences.
FHA Loans
- FHA minimum: 580 (3.5% down), 500 (10% down)
- Lender overlays: Many lenders require 620-640 minimum
- Best rates: 660+
- Notes: Mortgage insurance is required regardless of credit score
VA Loans
- VA minimum: None (VA does not set a minimum)
- Lender minimum: 580-620 typical
- Best rates: 660+
- Notes: No down payment or mortgage insurance required; best program for eligible veterans
USDA Loans
- Minimum: 640 for automated underwriting; lower possible with manual underwriting
- Notes: Geographic restrictions apply (rural/suburban areas); income limits apply
Jumbo Loans
- Minimum: Typically 700-720+
- Best rates: 740-760+
- Notes: Stricter requirements overall; larger down payments (10-20%+ typical)
The FICO Scoring Models Lenders Use
Most mortgage lenders use FICO scoring models rather than the newer models you see in consumer credit monitoring services. Specifically:
- Equifax: FICO Model 5
- Experian: FICO Model 2
- TransUnion: FICO Model 4
Lenders pull all three scores and typically use the middle score (not the average) for qualification and pricing. If you have a co-borrower, lenders use the lower of the two borrowers' middle scores.
Your consumer credit scores (from Credit Karma, Experian app, or your bank) may differ significantly from your mortgage credit scores. Request mortgage credit scores specifically if you want an accurate picture of how lenders will see you.
Improving Your Score Before Applying
Even small credit score improvements can have significant financial impact. Key strategies:
- Pay down credit card balances to below 10% of credit limits — this is the fastest score lever
- Dispute any errors on all three credit bureau reports
- Do not open new credit accounts in the 6-12 months before applying
- Keep all accounts current — one 30-day late payment can drop scores by 60-100 points
See our full credit scores and mortgage approval guide and credit repair guide for detailed strategies.