What Credit Score Do I Need to Buy a House?
You do not need perfect credit to buy a house. Some qualified buyers may be eligible for an FHA loan with a credit score of 580 and a 3.5% down payment. Other loan programs evaluate credit differently, and lenders may set requirements above the program’s published minimums.
The important part is this: your credit score helps determine your options, but it does not decide mortgage approval by itself.
Your income, monthly debts, payment history, down payment, and available savings also matter.
I’m Paul Mattos with Refine Mortgage and Carolina Home Financing. I help buyers throughout North Carolina and South Carolina understand where they stand before they start making offers.
Here’s how credit scores fit into the homebuying process.
What Credit Score Is Needed for Each Loan Type?
There is no single minimum credit score that applies to every mortgage. Requirements depend on the loan program, lender, and how the application is underwritten.
FHA Loans: 580 Can Allow 3.5% Down
Under FHA’s published guidelines:
A minimum decision credit score of 580 or higher can allow a down payment as low as 3.5%.
Scores from 500 to 579 may be eligible with at least 10% down.
Borrowers with a decision credit score below 500 are generally ineligible for FHA financing.
Those are FHA’s baseline rules. An individual lender may require a higher score or apply additional restrictions.
For example, a buyer with a 590 score still needs acceptable income, debt levels, payment history, and an eligible property. Meeting the score threshold does not automatically produce an approval.
Learn more about FHA home loans in North Carolina and South Carolina.
Conventional Loans: 620 Is Not a Universal Minimum
You may have heard that every conventional mortgage requires a 620 credit score. That is no longer an accurate blanket statement.
Fannie Mae removed the fixed minimum credit score requirement for new loan casefiles created in its Desktop Underwriter system beginning November 16, 2025. Desktop Underwriter, often called DU, evaluates the application’s overall credit risk.
That does not mean credit stopped mattering or that every applicant below 620 will qualify.
Lenders may still have their own minimums. Manually underwritten loans and other conventional lending channels have separate requirements. Credit scores also remain relevant to loan pricing.
For a buyer, the practical takeaway is simple: we need to evaluate the actual loan file rather than assume a particular score automatically qualifies or disqualifies you.
My conventional home loan guide explains other factors that affect the available options.
VA Loans: The VA Does Not Set a Minimum Score
The Department of Veterans Affairs does not establish a minimum credit score for its home loan benefit.
However, the lender providing the mortgage can set its own credit requirements. The lender must also evaluate the borrower’s credit history, income, debts, and ability to repay.
Eligible veterans, service members, and surviving spouses should have their complete situation reviewed rather than assume that one lender’s minimum applies everywhere.
USDA Loans: Lender and Underwriting Requirements Matter
USDA does not use one universal minimum credit score for its Guaranteed Loan Program. Lenders and investors can impose their own minimums, and the underwriting result matters.
You may hear 640 mentioned as a lender guideline, but it should not be presented as an absolute USDA requirement for every borrower.
USDA financing also has income and property eligibility requirements. A suitable credit profile alone does not establish eligibility.
Jumbo and Specialty Loans: Requirements Vary
Jumbo loans, bank statement loans, and other specialty programs have requirements that differ by lender and product.
The required score may depend on the down payment, loan amount, property use, and reserves. A program that offers flexibility with income documentation still has credit standards.
Why Do Different Lenders Give Different Answers?
A loan program establishes its underlying rules. A lender can add requirements of its own, often called lender overlays.
For example, FHA guidelines may permit a particular credit score, while a lender chooses to require a higher one.
That is one reason two lenders can reach different conclusions about the same buyer. Differences can also involve debt limits, recent late payments, or the types of properties they finance.
As a mortgage broker, I can compare available wholesale lender options. That provides more possibilities to evaluate, although every application still has to meet the chosen lender’s requirements.
Why Is My Mortgage Credit Score Different From My App?
The score you see in a banking app or credit monitoring service may differ from the score used for your mortgage.
Credit scores can vary because of:
The scoring model used.
The credit bureau providing the information.
When account balances and payments were reported.
The date the score was calculated.
There is no reliable rule that your mortgage score will be a certain number of points higher or lower.
Your app can help you monitor trends, but a mortgage credit review gives us the information needed to evaluate your loan options. With more than one borrower, the way scores are used also depends on the program and underwriting rules.
What Else Matters Besides the Credit Score?
Two buyers with the same score can have very different mortgage options.
A lender may review:
Payment history: Whether accounts have been paid on time, especially recently.
Monthly debts: How much of your qualifying income goes toward debt payments and the proposed housing payment.
Credit card balances: How much available revolving credit you are using.
Major credit events: Bankruptcy, foreclosure, or other events that may involve separate waiting periods.
Income: Whether it is stable, documented, and eligible for qualifying.
Savings: Funds for the down payment, closing costs, and any required reserves.
For example, a buyer with a 640 score, manageable debts, and consistent recent payments may have a different outcome than someone with the same score and several recent missed payments.
A strong credit score also cannot replace enough qualifying income to support the payment.
Does a Higher Credit Score Help?
A higher score may improve your access to lenders, loan structures, or pricing. It can also affect private mortgage insurance costs on a conventional loan.
However, there is no single score that guarantees the best rate. Your down payment, property type, loan amount, loan program, and market conditions also affect the offer.
When we compare options, I look at the estimated payment, mortgage insurance, closing costs, and savings remaining after closing. You can read more about private mortgage insurance and how it works.
What Should I Do If My Credit Needs Work?
Start with an accurate picture of your credit and a plan that fits your homebuying timeline.
Keep Payments Current
Consistent on-time payments are an important part of building and maintaining credit. Set reminders or automatic minimum payments if they help you avoid missed due dates.
Review Credit Card Balances
Reducing high revolving balances may help your credit profile and can sometimes lower the monthly debts used for mortgage qualification.
But first, consider how much money you need to preserve for closing. Paying down debt and saving for a home should be planned together.
Check for Reporting Errors
Review your credit reports for accounts that are not yours, incorrect balances, or payments reported inaccurately. You have the right to dispute errors.
If you are already applying for a mortgage, tell your lender about any disputes so the loan review can account for them.
Discuss New Accounts and Major Payoffs Before Acting
Opening a new card, financing a car, or closing an existing account can affect your credit or mortgage qualification.
Before making major changes during the mortgage process, ask how they could affect your file. There is no dependable shortcut that guarantees a specific score increase by a particular date.
The CFPB’s guide to building and maintaining good credit provides a useful starting point.
Frequently Asked Questions
Can I Buy a House With a 580 Credit Score?
Possibly. FHA guidelines allow qualified buyers with a decision credit score of at least 580 to be considered for 3.5% down financing. Lender requirements and the rest of the application still apply.
Can I Buy a House With a 620 Credit Score?
Possibly. A 620 score may fit several lending options, but the score alone does not establish approval. We also need to review your income, debts, savings, and credit history.
Do I Need a 700 Credit Score?
No. A 700 score is not a universal homebuying requirement. Higher scores may improve some options, but qualified buyers can purchase with lower scores.
Can I Buy a House Without a Credit Score?
Some programs permit eligible borrowers without a traditional credit score to qualify using documented alternative payment history. Availability and documentation requirements vary by program and lender.
Having no score and having a low score are different situations and need separate reviews.
Should I Wait Until My Credit Improves Before Talking to a Lender?
You can have a planning conversation before you are ready to buy. Sometimes it makes sense to improve credit first; other times, available options are already worth comparing.
An early review can help you identify what actually needs attention.
Find Out Where You Stand Before House Hunting
If you are planning to buy in Charlotte, Fort Mill, Rock Hill, Indian Land, or elsewhere in North Carolina or South Carolina, you do not have to figure out mortgage credit requirements on your own.
I can review your credit, income, debts, and available funds, then explain the options we can realistically explore. My mortgage document checklist can help you prepare.
Schedule a mortgage consultation so we can build a plan around your situation and buying timeline.
Paul Mattos
Mortgage Broker | Refine Mortgage
NMLS# 2339069 | Licensed in North Carolina and South Carolina
CarolinaHomeFinancing.com
