What Credit Score Do You Need to Buy a House? (and How Your Score Changes Your Rate)

by Brian Wittman

Someone asked it in a local first-time buyer group a few weeks ago, and the answers were all over the place. One person said 620. Somebody said 580. Somebody else said they bought with a 540.

Here's the thing. They could all be right, and it still wouldn't answer the question that actually matters to you. The minimum tells you whether you can get a loan. It doesn't tell you what that loan's going to cost.

So you'll get both here: the floor for each loan type, and what your score does to your price once you're above it.

What credit score do you need to buy a house?

It depends on the loan. FHA loans go down to 580 with 3.5 percent down, and 500 with 10 percent down. VA and USDA don't set a minimum, so the lender does. Fannie Mae and Freddie Mac have both dropped their set minimums for loans their automated systems approve, but lenders still set their own. And Illinois's IHDA down payment programs need a 640. Clearing the minimum gets you in the door. Your score keeps working on your rate after that.

What's the minimum credit score for a conventional loan?

For years, the answer was 620. That changed. Fannie Mae announced that minimum credit score requirements would no longer apply to loans submitted to Desktop Underwriter, its automated approval system, for new files created on or after November 16, 2025. Freddie Mac's guide has gone the same way for loans its system approves, leaving the floor to the lender.

So does that mean there's no minimum? Not really. The automated system still weighs your whole file, and it can still say no. Loans that get underwritten by hand still have minimums. And most lenders set their own floor on top of the program's, which is called an overlay. So in practice, you'll still hear a number, and it's often still somewhere around where it used to be.

That is why the honest answer to "what's the minimum" is "ask the lender what theirs is, and why."

What about FHA, VA and USDA loans?

Here's where each one stands, straight from the agencies:

FHA: a 580 or higher gets you the 3.5 percent down payment. From 500 to 579, you'll need 10 percent down. Under 500, an FHA loan isn't an option. (HUD Mortgagee Letter 2026-11)
VA: the VA doesn't require a minimum credit score, but it says the lender may set one.
USDA: USDA doesn't publish a minimum score either. A lot of lenders use 640 as their line for USDA loans, so expect to hear that number.

Notice the pattern. The program sets the floor, if it sets one at all. The lender decides whether to build a higher floor on top of it. That's why two lenders can give you two different answers about the same score, and neither one's lying to you.

What credit score do you need for Illinois down payment help?

IHDA, the Illinois Housing Development Authority, runs the state's down payment assistance. All five of its purchase programs need a 640 minimum: Opening Doors, Access Home, Access Forgivable, Access Deferred and Access Repayable.

So if you're counting on down payment help, 640 is your real number, even if the loan underneath it would take less. That's worth knowing early, because a score that's a few points short is a lot easier to fix in three months than in three days.

How does your credit score change your mortgage rate?

This is the part the minimum skips, and it's where the money is.

Fannie Mae charges what it calls loan-level price adjustments. They're fees based on your credit score and your down payment, and lenders usually build them into your rate instead of charging them up front. Here's what Fannie's current matrix (dated September 9, 2026) shows for a purchase with 20 percent down:

780 or higher: 0.375 percent
640 to 659: 2.250 percent

Now put that on a $300,000 loan as an illustration. At 780, that adjustment works out to about $1,125. At 640, it's about $6,750. That's a gap of about $5,600 on the exact same house and loan, and it's coming from your score. You usually won't see it as a line item, either. You'll see it in a higher rate, and you'll pay it every month.

And if you're putting less than 20 percent down, there's a second piece. Mortgage insurance is priced on your score too. Fannie Mae's own consumer site puts it simply: the higher your score, the lower your PMI cost. PMI isn't something you have to fear, and it's often not the enemy it's made out to be. But it's cheaper with a better score.

So when you ask what score you need, the better question is what score gets you the price you want. The jump from one band to the next can be worth more than a lot of the haggling people do on the house.

Which credit score do mortgage lenders actually use?

Probably not the one in your banking app. The score you see for free is often a different model than the one a mortgage lender pulls.

For a mortgage, the lender usually pulls all three credit bureaus and uses your middle score. If two of you are applying, it's usually the lower of your two middle scores, so one weaker file can set the price for both of you.

There's also a newer wrinkle. Since September 9, 2026, any lender can use VantageScore 4.0 on loans sold to Fannie Mae and Freddie Mac. The classic FICO score is still allowed, too. So lenders can now use either one, and your number may move a bit depending on which model they pull. FHA follows in 2027.

That's one more reason to talk to a lender before you start shopping, not after. It's also why the first step to getting pre-approved is your own number, not theirs.

What if your score's below the minimum?

Then you have a project, not a dead end. A lot of what drags a score down can be fixed: errors on your report, a collection that shouldn't be there, a balance that's too high against its limit.

If you want help with it, My Credit Guy is where people get sent. There's no payment to me for that. They don't charge until the work's done, and they're clear up front about their fees.

Here's the rule to remember with any credit repair company. Under federal law, they can't charge you before they've done the work. If someone wants money up front, walk away.

And give yourself time. The months you spend fixing a score aren't wasted. They're the cheapest months you'll have, because every band you climb is a better price on a loan you'll carry for years.

How do you protect your score while you're shopping?

Once your score's where you want it, don't let anything knock it back down before closing.

Start with rate shopping. The CFPB says multiple mortgage credit checks within 45 days count as a single inquiry for scoring. Some of the older scoring models that mortgage lenders use go by 14 days, though, so you'll be safest if you keep your shopping inside about two weeks.

Then watch for surprises. You can pull your credit reports free every week at AnnualCreditReport.com, and looking at your own report doesn't touch your score.

If you'd rather have something watching for you, Aura is what I use for credit monitoring. It includes identity theft protection, so if something happens, they'll help you get it fixed. I may earn a small referral fee; I recommend it because I've vetted it.

And don't open new credit, co-sign or finance furniture between pre-approval and closing. Those are some of the things that can disqualify you from a mortgage before closing, even after you've been approved.

The Bottom Line

The minimum credit score to buy a house depends on the loan: 580 for FHA with 3.5 percent down, no program minimum for VA or USDA, no set floor anymore from Fannie Mae or Freddie Mac on loans their systems approve, and 640 for Illinois's IHDA down payment help. Lenders can set their own number on top of any of those.

But the minimum only gets you in the door. Your score keeps setting your price after that, through your rate and your mortgage insurance. So don't just ask whether you'll qualify. Ask what your score's costing you, and whether a few months of work would change it. And remember that what you're approved for still isn't the same as what you can actually afford.

Frequently Asked Questions

What's the minimum credit score for a conventional loan?

Fannie Mae and Freddie Mac no longer set a minimum score for loans their automated systems approve. Those systems can still decline a file, though, and most lenders set their own minimums. Ask each lender what their floor is.

Can you buy a house with a 500 credit score?

With an FHA loan, yes, if you put 10 percent down. A score from 500 to 579 caps FHA financing at 90 percent of the price, and under 500 isn't eligible. Many lenders set a higher floor than FHA does, so you may need to shop.

How much does your credit score change your mortgage rate?

It can change it a lot. On Fannie Mae's current pricing matrix, a purchase with 20 percent down carries a 0.375 percent adjustment at 780 or higher, and 2.250 percent at 640 to 659. Lenders usually build that into your rate.

What credit score do you need for IHDA down payment assistance?

That's the minimum for all five of IHDA's purchase programs, as listed on ihda.org.

Does checking your own credit hurt your score?

No. Pulling your own report is a soft inquiry, and it doesn't affect your score. You can get your reports free every week at AnnualCreditReport.com.

Do mortgage lenders use FICO or VantageScore?

Both are allowed now. Since September 9, 2026, lenders can use VantageScore 4.0 on Fannie Mae and Freddie Mac loans, and the classic FICO score is still accepted. FHA lenders can start using VantageScore 4.0 in 2027.

If there's a credit question you're stuck on, send it to me and you'll get a straight answer.

Brian Wittman is a licensed real estate broker (Real Broker LLC), mortgage loan originator (NMLS #2646598, NEXA Mortgage, LLC, Equal Housing Lender), and life insurance producer (Levinson & Associates). This article is for educational purposes only and is not financial, lending, tax, or legal advice, an offer, or a commitment to lend; all loans are subject to credit approval. Information is accurate as of the publication date; for current details and full disclosures, visit https://bluejeanbroker.com/disclosures.