What is the minimum credit score to buy a house?

The minimum depends on the loan type: FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans typically require 620+. VA loans have no official minimum but most lenders require 620+. USDA loans typically require 640+.

How much does my credit score affect my mortgage rate?

Significantly. Going from a 620 to a 760 score can lower your mortgage rate by 1.5% or more. On a $300,000 30-year mortgage, that difference saves approximately $90,000 in total interest. Even a 40-point improvement can save $20,000–$40,000 over the life of the loan.

Should I pay off all debt before applying for a mortgage?

Not necessarily all debt — but you should reduce credit card utilization to under 30% (ideally under 10%) before applying. Paying off collections and reducing revolving debt will improve your score and your debt-to-income ratio, both of which affect mortgage approval.

How long before applying for a mortgage should I start improving my credit?

Ideally, start 6–12 months before you plan to apply. This gives time for dispute results to post, utilization improvements to reflect, and new positive accounts to build history. If you have collections or late payments, start 12–18 months in advance.

Does getting pre-approved for a mortgage hurt my credit score?

A mortgage pre-approval requires a hard inquiry, which typically lowers your score by 2–10 points. However, if you apply to multiple lenders within a 45-day window, FICO counts all mortgage inquiries as a single inquiry. Shop multiple lenders within 45 days to minimize the impact.

What Credit Score Do You Need to Buy a House in 2026?

Your credit score is one of the most important factors in getting approved for a mortgage — and in determining what interest rate you will pay. A 100-point difference in your score can mean $50,000–$100,000 in additional interest over the life of a 30-year loan.

This guide covers the minimum credit score requirements for every major loan type in 2026, how your score affects your mortgage rate, and the exact steps to get mortgage-ready as fast as possible.

Minimum Credit Score Requirements by Loan Type

FHA Loan

500–580

Down payment: 3.5% (580+) or 10% (500–579)

Rates: Competitive

Best for first-time buyers with lower scores. Requires mortgage insurance.

Conventional Loan

620+

Down payment: 3–20%

Rates: Best rates at 740+

No mortgage insurance with 20% down. Best rates for high scores.

VA Loan

620+ (lender)

Down payment: 0%

Rates: Very competitive

For veterans and active military. No down payment required. No PMI.

USDA Loan

640+

Down payment: 0%

Rates: Competitive

For rural and suburban areas. Income limits apply. No down payment.

How Your Credit Score Affects Your Mortgage Rate

The following table shows estimated monthly payments and total interest on a $300,000 30-year fixed mortgage at different credit score ranges. These are illustrative estimates based on 2026 market rates.

Score Range	Est. Rate	Monthly Payment	Total Cost
760–850	6.25%	$1,847/mo	$664,920
700–759	6.45%	$1,882/mo	$677,520
680–699	6.60%	$1,909/mo	$687,240
660–679	6.85%	$1,954/mo	$703,440
640–659	7.25%	$2,046/mo	$736,560
620–639	7.85%	$2,163/mo	$779,280

*Estimates based on $300,000 30-year fixed mortgage. Actual rates vary by lender and market conditions.

How to Get Mortgage-Ready: 6-Step Credit Preparation Plan

Pull All Three Credit Reports

12 months before

Start at AnnualCreditReport.com. Review every account, every balance, every late payment. Identify every disputable item before a lender sees your report.

Dispute All Errors Immediately

11–12 months before

File disputes for every inaccurate item. Bureau investigations take 30 days. Start early so results post before your mortgage application.

Pay Down Credit Card Balances

6–12 months before

Get every card under 10% utilization. This is the fastest way to improve your score — results show in one billing cycle.

Resolve Collections Strategically

6–12 months before

Negotiate pay-for-delete agreements on any collections. Do not pay without a written deletion agreement — paying without deletion does not help your score.

Avoid New Credit Applications

6 months before

Do not apply for new credit cards, auto loans, or personal loans in the 6 months before your mortgage application. Each hard inquiry can lower your score.

Keep All Accounts Current

Ongoing

Not a single late payment. Set up autopay for every account. One missed payment can drop your score 60–110 points and delay your mortgage timeline by months.

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