Here’s the straight answer: you can buy a house with a credit score as low as 580 for an FHA loan (with a 3.5% down payment) or 620 for a conventional loan, but a score in the mid-600s or higher is where you start unlocking the best interest rates and the widest choice of programs. In other words, there’s a minimum to get in the door, and a much better number that saves you real money over the life of the loan.
I think the “minimum score” question gets people focused on the wrong target. Qualifying and qualifying well are two very different things, and the gap between them can cost tens of thousands of dollars in interest.
Key Takeaways
- FHA loans: 580 minimum for 3.5% down; 500–579 is possible but requires 10% down.
- Conventional loans: 620 is the typical minimum for conforming loans.
- Reality check: The average credit score for an FHA purchase loan is about 686, well above the minimum.
- Better score, better rate: Moving from “fair” to “good” credit can shave your mortgage rate and noticeably lower your monthly payment.
- It’s not just the score: Lenders also weigh your debt-to-income ratio, down payment, and job history.
Minimum Credit Scores by Loan Type
Different loan programs set different floors. Here’s how the most common options compare:
| Loan type | Minimum credit score | Typical down payment |
|---|---|---|
| FHA (3.5% down) | 580 | 3.5% |
| FHA (10% down) | 500–579 | 10% |
| Conventional (conforming) | 620 | 3%–20% |
| VA loan | No official minimum (lenders often want 620) | 0% |
| USDA loan | No official minimum (often 640) | 0% |
Lender overlays can raise these minimums, so individual banks may require higher scores than the program floor.
Why the Minimum Isn’t the Goal
Technically qualifying at 580 or 620 doesn’t mean you’ll get a great deal. According to FHA credit score data, the average score for people actually approved for an FHA purchase loan is around 686, comfortably above the 580 floor. That tells you something important: most successful buyers aren’t scraping in at the minimum.
The reason matters. Your credit score directly influences your mortgage interest rate, and even a fraction of a percentage point can add up to serious money over 30 years. Pushing your score from the low 600s into the 700s before you apply is often the single highest-return thing you can do as a buyer.
Rather go to bed without dinner than to rise in debt.”
— Benjamin Franklin, Poor Richard’s Almanack
What Lenders Look at Besides Your Score
Your credit score opens the conversation, but approval rests on more than one number:
- Debt-to-income (DTI) ratio: Most lenders want your total monthly debt to be below about 43% of your gross income.
- Down payment: A larger down payment can offset a lower score and reduce or eliminate mortgage insurance.
- Employment history: Lenders like to see steady, documentable income, usually for two years.
- Cash reserves: Money left over after closing signals you can weather a rough patch.
As mortgage lenders explain, these factors work together. A strong down payment and low DTI can sometimes make up for a score that’s a little short of ideal.
How to Raise Your Score Before You Apply
If you’re planning to buy in the next six to twelve months, a few focused moves can lift your score:
- Pay every bill on time, since payment history is the biggest factor.
- Lower your credit utilization below 30%, ideally under 10%.
- Avoid opening new credit lines right before applying.
- Check your credit report for errors and dispute anything inaccurate.
Frequently Asked Questions
Can I buy a house with a 600 credit score?
Yes. A score of 600 qualifies you for an FHA loan, and you may qualify for a conventional loan if it’s 620 or higher. You’ll likely pay a higher interest rate than someone with a 740+ score, so improving your credit first can save money.
What credit score gets the best mortgage rate?
Generally, scores of 740 and above earn the most favorable conventional mortgage rates. The jump in savings between “good” and “excellent” credit is smaller than the jump from “fair” to “good,” but every tier helps.
Does checking my own credit hurt my score?
No. Checking your own credit is a “soft inquiry” and does not affect your score. Only “hard inquiries” from lenders when you apply for credit can cause a small, temporary dip.
How much down payment do I need with a low score?
With an FHA loan, a score of 580 requires a 3.5% down payment, while a score of 500 to 579 requires a 10% down payment. A larger down payment can also help you qualify with a weaker credit profile.
The Bottom Line
You can get into a home with a 580 FHA score or a 620 conventional score, but the smarter target is the mid-600s and up, where better rates and more options live. Treat the minimum as the entry ticket, and use your actual score as a lever to lower your payment. A few months of on-time payments and lower balances before you apply can pay you back for the entire length of the mortgage.
Image: Markus Winkler; Pexels
