What Credit Score is Good to Buy a House?

What Credit Score is Good to Buy a House

Your credit score plays a pivotal role in the mortgage application process and could make or break your dream of homeownership, saving thousands in interest charges over its lifespan.

Conventional lenders usually require at least 620 to be considered for home loans, although loan programs may have lower minimum credit score requirements.

Buying a Home

The minimum credit score you need to buy a house depends on the lender and mortgage type you select. Still, in general, most conventional loan providers require at least a FICO score 620 for conventional loans – the most frequently chosen mortgage option.

Your credit report provides an overall snapshot of how you have handled debt over time, such as payment history, outstanding amounts owed, and account ages.

Check your credit report early in the home-buying process, at least six to twelve months ahead, to identify any errors and improve your score before applying for a mortgage loan.

Keep new credit accounts open only after your mortgage closes since each application triggers a hard inquiry that could temporarily lower your scores. Instead, focus on paying down existing balances and maintaining an optimal utilization-to-credit-available ratio.

FICO Scores

Credit scores are three-digit numbers lenders use to assess your risk for repaying borrowed money. FICO scores use different variables on credit reports from Equifax, Experian, and TransUnion to calculate this score, which ranges from 300 to 850. A higher score makes it easier for you to secure loans with favorable terms; factors that impact this include payment history, account age, and mix. Typically, FICO rewards borrowers with retail accounts, credit cards, installment loans, or mortgages in their financial portfolio.

Though you may see various credit scores advertised, only the Fair Isaac Corporation’s FICO score (known by many lenders as simply FICO) is used by 90% of top lenders. Checking your FICO scores early can help identify any issues you can address to enhance your profile before applying for a mortgage loan; having a high FICO score could save money and open doors to future financial opportunities.


Credit scores are among the key criteria lenders use when making mortgage loans; however, other aspects, such as debt-to-income ratio and employment history, also play a part.

Establishing an excellent credit score can result in lower mortgage rates, potentially saving thousands over the life of your loan. Achieve this by consistently paying bills on time and maintaining a manageable debt-to-income ratio.

To qualify for a conventional home loan, you will require at least 620 as your minimum credit score; however, FHA or government-backed mortgages may allow for lower eligibility requirements. A strong credit score is essential in getting the best mortgage rate; having at least 620 means being sure you can afford your monthly mortgage payments without incurring more costs than necessary.

Down Payment

The minimum credit score required to purchase a home varies by mortgage type and lender; for most conventional loans, at least a 620 FICO score will usually be necessary to be considered eligible; government-backed home loan programs may allow borrowers with lower scores. A significant down payment can help mitigate poor credit and help secure you an attractive rate loan.

Your mortgage lender will consider your income, debts, and savings to assess how much you can borrow. Your credit score is only one element of this equation; however, it can significantly impact interest rates and terms, which could save thousands over time. Starting early—six to twelve months before planning to buy a home – allows time for problems that could hinder eligibility to be addressed; additionally, pre-approval from lenders provides insight into what to expect when it’s time to apply for your loan application.


In conclusion, understanding what credit score is good for buying a house is pivotal for prospective homebuyers. At Advance Capital Now, we recognize the significance of credit in home-buying. Our commitment is to clarify credit score requirements, offering personalized guidance to empower you in achieving your homeownership goals.

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