What Credit Score Do You Need to Buy a House? (2026 Minimums by Loan Type)

There’s no single “magic number” credit score to buy a house — the real minimum depends on the loan type you choose and how much you want to pay in interest. The good news: you probably don’t need the 720+ score people talk about. The better news: small improvements in your score can save you tens of thousands of dollars over the life of your mortgage.

Before you worry about your credit score, find out what you can actually afford. Our free home affordability calculator uses realistic assumptions so you can see how different credit scores and down payments impact your monthly payment.

The short answer: minimum credit scores by loan type

Here’s the 2026 cheat sheet:

That’s the lender minimum. The score you want is a different conversation — because even 40 points higher can save you hundreds of dollars a month.

Credit score tiers and what they mean for buyers

300–579: Poor

You’re not out of the game, but your options are limited. FHA loans are your best bet — they allow scores down to 500 with a 10% down payment, or 580 with 3.5% down. Expect higher interest rates and possibly tougher lender overlays. A few months of on-time payments and debt reduction can move you into the next tier.

580–669: Fair

You’re FHA-eligible and may qualify for some conventional programs. Rates will be higher than ideal. This is the biggest tier where small improvements pay off fast — even 20 points can put you into a better rate bucket.

670–739: Good

You qualify for most loan types and can start negotiating on rate. Conventional loans become a real option, and you may be able to avoid the highest PMI rates. Most buyers in this tier can comfortably shop without worrying about approval.

740–799: Very good

You’re getting best-tier pricing on most loans. Most lenders cap their discounts at 740 — meaning going higher than that won’t save you much more. If you’re in this tier, focus on down payment and DTI, not credit.

800–850: Exceptional

You’re at the ceiling. Great for bragging rights, but you won’t get meaningfully better rates than someone with 760. Enjoy the flex.

How your credit score affects your mortgage rate

Lenders use “loan-level price adjustments” (LLPAs) to charge more for lower-credit borrowers. On a conventional 30-year loan, going from a 620 to a 760 credit score can drop your rate by 0.5% to 1.0%. That doesn’t sound like a lot, but watch what it does to your payment:

On a $320,000 loan at 7.5% (lower credit): your P&I payment is about $2,237/month. At 6.5% (higher credit): $2,023/month. That’s $214/month — or $77,000 over 30 years.

Credit score is hands down the most leveraged number in your mortgage. A few months of focused improvement can save you more than years of saving extra cash.

What lenders actually check: FICO, not Credit Karma

Here’s a surprise for many first-time buyers: the credit score you see on Credit Karma, Mint, or your bank app is not the score lenders use. Mortgage lenders pull your FICO score from all three credit bureaus (Equifax, Experian, TransUnion) and use the middle score as your qualifying number.

It’s common for your “mortgage score” to be 20–40 points lower than what you see on consumer apps. Don’t panic if your Credit Karma score is 700 but your actual qualifying score is 670 — that’s normal.

What factors actually affect your credit score?

The FICO formula breaks down roughly like this:

• Payment history (35%) — the single biggest factor. One late payment can drop your score 50–100 points.
• Amounts owed / credit utilization (30%) — keep credit card balances under 30% of their limits, ideally under 10%.
• Length of credit history (15%) — how long your oldest accounts have been open.
• New credit (10%) — hard inquiries and new accounts in the last 12 months.
• Credit mix (10%) — having both revolving (credit cards) and installment (car loans, etc.) debt.

How to boost your credit score before you apply

1. Pay down credit card balances (fastest move)

Credit utilization updates every 30 days when your card statements close. Paying a $3,000 balance down to $500 on a card with a $5,000 limit can add 20–40 points in a single billing cycle. This is the single fastest lever.

2. Don’t close old credit cards

Closing a card lowers your total available credit and reduces your average account age — both hurt your score. Keep old cards open and use them once every few months to keep them active.

3. Dispute errors on your credit report

Up to 20% of credit reports contain errors. Pull your free reports from annualcreditreport.com, check everything, and dispute anything that’s wrong. Errors can be corrected in 30–60 days.

4. Pay every bill on time, every time

Payment history is 35% of your score. Even one 30-day late payment can drop you 50+ points. Set up autopay for minimums on every account and never miss a due date.

5. Don’t open new credit before applying

New credit cards, car loans, and store financing all trigger hard inquiries and add new debt that affects your debt-to-income ratio. Hit pause on all new credit 6–12 months before you plan to apply for a mortgage.

6. Become an authorized user on a family member’s card

If a family member has a long-standing, low-balance credit card in good standing, getting added as an authorized user can instantly piggyback their history onto your score. No need to actually use the card.

How long does it take to improve your score?

• 1–2 months: paying down credit card balances (can add 20–40 points)
• 1–3 months: disputing errors on your credit report
• 3–6 months: consistent on-time payments after past delinquencies
• 6–12 months: meaningful improvement if you’re rebuilding from a low score
• 1–2 years: recovering from serious events (collections, repossessions)
• 7+ years: bankruptcies and major delinquencies drop off your report

In most cases, a focused 3–6 month effort can move you a full tier and unlock better rates.

Mortgage shopping with multiple lenders: will it hurt your score?

No — as long as you do it within a 14-day window. The credit bureaus treat multiple mortgage inquiries in that window as a single hard pull, so you can (and should) get pre-approved with 2–3 lenders to compare rates and fees. It’s one of the highest-ROI moves you can make.

Rate shopping beyond 14 days starts counting each pull separately, so cluster your applications.

What if your credit score is too low right now?

Don’t give up. Here’s the realistic playbook:

1. Run the affordability math first. Use our affordability calculator to see if your income and down payment support your target home.
2. Pull your credit reports for free at annualcreditreport.com.
3. Pay down revolving debt aggressively for 2–3 months.
4. Dispute errors and wait 30–60 days for them to clear.
5. Meet with a lender for a “credit counseling” pre-app. They can tell you exactly what’s dragging your score down and what’ll move it fastest.
6. Apply when you’ve hit your target score — usually 3–6 months later.

Stretch your credit further with Beycome

Your credit score determines your rate — but your rate isn’t the only lever. When you buy with the Beycome buyer program, we rebate up to 2% of the purchase price back to you at closing. On a $350,000 home, that’s $7,000 — enough to offset higher interest payments from a lower credit score for years.

See exactly how it affects your total cost with our affordability calculator.

Bottom line: know your score, then work the loan type

You don’t need perfect credit to buy a house. You need to know your actual FICO score, match it to the right loan type, and then squeeze every basis point out of your rate by shopping lenders and improving the variables you control. A 580 score gets you an FHA loan. A 620 unlocks conventional. A 740 gets you the best rate in every category. And every 20 points you climb between those tiers is money you keep.

See exactly what you can afford at your credit score. Run the numbers on the Beycome affordability calculator — free, instant, and totally private.

Discover beycome title today!