Credit Score for Home Buying: What You Need by Loan Program
The minimum score to qualify is not the score you want. Here's what each mortgage program actually requires, and the 6–12 month plan to get there before you apply.
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Minimum Credit Scores by Loan Program
| Program | Minimum Score | Ideal Score | Notes |
|---|---|---|---|
| FHA Loan | 580 (3.5% down) / 500 (10% down) | 620+ | Most flexible on collections and past derogatories. |
| Conventional Loan | 620 | 740+ for best rates | Fannie Mae / Freddie Mac. Rate tiers jump at 660, 700, 740, 760. |
| VA Loan | No official minimum (lenders set 580–620) | 660+ | For eligible service members. No PMI. |
| USDA Loan | 640 (automated underwriting) | 680+ | Rural properties only. Income limits apply. |
| Jumbo Loan | 700 | 760+ | Above conforming loan limits. Stricter DTI and reserves. |
Score thresholds reflect published program guidelines as of 2025. Individual lenders may overlay stricter requirements ("lender overlays"). Not legal or financial advice.
The 6–12 Month Pre-Mortgage Plan
A realistic timeline to move a fair score into "best rate" territory before you apply.
Why 40 Points Matter More Than You Think
FAQ
What credit score do I need to buy a house?
The minimum depends on the loan program: FHA starts at 500–580, Conventional at 620, VA at ~580 (lender-set), USDA at 640. For the best interest rate on a Conventional loan, you want 740+ — the difference between a 640 and a 740 score can be $200+ per month on a typical mortgage.
How long does it take to fix credit to buy a house?
Most buyers can move a fair score (620–680) into good (700+) in 6–12 months with a disciplined plan: dispute inaccuracies, drop utilization below 10%, and add positive tradelines. Deeper repair after collections or charge-offs may take 12–18 months.
Can I buy a house with bad credit?
Yes — FHA loans allow scores as low as 500 with 10% down, and some lenders will work with 580 at 3.5% down. Expect higher rates, larger down payments, and stricter debt-to-income requirements. Fixing your score first almost always saves more than it costs.
Do mortgage lenders use FICO or VantageScore?
Mortgage lenders use a specific set of FICO models: FICO 2 (Experian), FICO 5 (Equifax), and FICO 4 (TransUnion). They pull all three and use the middle score. This is why your Credit Karma VantageScore can differ 20–80 points from your mortgage score.
Should I pay off collections before applying for a mortgage?
It depends. FHA underwriting often ignores collections under $2,000 total. Conventional lenders may require you to pay or settle them. Never pay a collection without a pay-for-delete agreement in writing — paying a collection can re-age it and hurt your score.
Get the Free Credit Blueprint Before You Apply
A 5-step plan built around The 700 Score System™ — the framework thousands have used to prepare their credit for major financing decisions.
Educational resources only. Strategic Credit Institute provides consumer-law-based credit education and is not a credit repair organization or law firm. Nothing here is legal, financial, or tax advice. Individual results depend on your unique credit profile and effort — we make no guarantees of specific score changes, deletions, or funding outcomes.