Credit score needed to buy a house: minimums by loan type, and what it costs to be average

The minimum score gets you in the door. The score 60 points higher gets you a cheaper house — same price, lower payment, for thirty years.

Minimums by program

Program	Official minimum	What lenders commonly require
FHA	580 with 3.5% down; 500–579 with 10% down	Many set 600–620 overlays
Conventional	620	620; meaningful pricing breaks at 680, 720, 740, 760
VA	None set by VA	Typically 580–620
USDA	None set by USDA (640 for streamlined automated approval)	Typically 640
Jumbo	Lender-specific	Often 700–720+

Which score they use

Mortgage lenders pull all three bureaus and use the middle of your three scores (the lower middle score if there are two borrowers, under most current rules). The models are the older FICO versions specified by Fannie Mae and Freddie Mac, which often differ by 20 to 40 points from the score your credit card app shows. Ask the lender for the actual tri-merge numbers.

What each band costs

Conventional pricing uses loan-level price adjustments by score and loan-to-value; the gap between a 640 and a 760 score at 95% LTV can be a full percentage point or more in rate-equivalent cost, plus PMI that is two to three times more expensive. On a $300,000 loan that can exceed $300 a month. FHA pricing is much flatter across scores, which is why FHA wins for lower-score buyers.

Raising your score before you apply

Utilization: pay credit card balances below 30% of limits (below 10% is better) before the statement closes — the fastest lever, visible within a cycle.
Errors: dispute genuine mistakes through the bureaus; about one in five reports has an error. Do not pay “credit repair” companies for what you can do free.
Do not close old cards — length of history helps.
Rapid rescore: once under contract, some lenders can request an updated score within days after you pay down a balance.
Collections: paying a small collection may not raise older-model scores; medical collections under $500 are no longer reported by the major bureaus.

Frequently asked questions

Can I buy a house with no credit score?

Yes, with non-traditional credit — 12 months of rent, utility and insurance payment history — on FHA and, increasingly, conventional loans through automated underwriting that considers rent history. Expect more documentation and a manual review.

How long after a bankruptcy or foreclosure can I qualify?

FHA: two years after a Chapter 7 discharge, three years after a foreclosure (one year into a Chapter 13 with court permission). Conventional: four years after Chapter 7, seven after foreclosure (less with documented extenuating circumstances). VA: two years for both.

Does checking my own credit lower my score?

No. Checking your own report is a soft inquiry. Only applications for credit create hard inquiries, and mortgage inquiries within a shopping window count as one.