You don’t need perfect credit to buy a house, but there’s no single credit score that guarantees a mortgage. Your options depend on the loan program, the lender’s requirements, and the rest of your finances.
We checked mortgage-program guidance to separate official requirements from the additional conditions lenders can set. This guide compares credit score requirements, explains how your credit score affects borrowing costs, and shows what to check before you apply.
What Credit Score Do You Need to Buy a House in 2026?
The minimum credit score depends on the mortgage you choose and how the lender reviews your application. Some programs set specific thresholds, while others leave more of the decision to the lender and its underwriting process.
| Mortgage Type | Program Credit Score Requirement | Minimum Down Payment | Main Conditions |
|---|---|---|---|
| Conventional | No single minimum across all conventional loans; Fannie Mae’s Desktop Underwriter doesn’t impose a minimum third-party credit score | As low as 3% for eligible borrowers | Underwriting approval and lender requirements still apply |
| FHA | 580 or higher for maximum financing | 3.5% | Lenders can require a higher credit score |
| FHA | 500–579 | 10% | Lenders must offer and approve loans within this credit score range |
| VA | No VA-set minimum credit score | Often 0% for eligible borrowers | Service eligibility, lender approval, and property requirements apply |
| USDA Guaranteed | No single USDA-set minimum credit score | 0% for eligible borrowers | Income limits, property location, and lender requirements apply |
These are program guidelines, not approval promises. A lender can require a higher credit score or decline an application because of income, debt, recent missed payments, or other concerns.
The reverse also matters: one lender’s rejection doesn’t necessarily mean every lender will reject you. Ask whether the obstacle comes from the mortgage program or the lender’s own rules.
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Minimum Credit Score Requirements by Mortgage Type
Each mortgage program treats credit differently. The lowest credit score requirement alone won’t tell you which loan offers the best fit or lowest total cost.
Conventional Loan Credit Score Requirements
Conventional mortgages aren’t insured or guaranteed by the federal government. Their eligibility rules depend on the loan program, underwriting method, and lender.
In November 2025, Fannie Mae removed the minimum third-party credit score requirement for loans through Desktop Underwriter. The system evaluates credit history and other application details through its own risk assessment.
That change doesn’t mean credit checks have disappeared. Credit scores still matter for loan pricing, and lenders can impose their own minimums. Manual underwriting and other conventional loan programs also have separate requirements.
Eligible borrowers can put down as little as 3% through certain conventional programs. Freddie Mac’s Home Possible mortgage and Fannie Mae’s HomeReady mortgage offer low-down-payment options for borrowers who meet their income and other eligibility requirements.
Neither program is limited to first-time homebuyers. Homebuyer education may be required, and lender approval still depends on the complete application.
FHA Loan Credit Score Requirements
FHA loans have federal insurance through the Federal Housing Administration. The credit score tiers in the table determine the maximum financing FHA permits.
Individual lenders can set stricter requirements. A lender might offer FHA loans but decline applications within the lower credit score tier, even when the borrower meets FHA’s down-payment rule.
FHA loans also include upfront and annual mortgage insurance premiums. These are different from the private mortgage insurance on conventional loans.
For most new FHA purchase loans, annual mortgage insurance lasts 11 years if you put down at least 10%. With a smaller down payment, it generally lasts for the mortgage term unless you pay off or refinance the loan.
VA Loan Credit Score Requirements
VA-backed mortgages serve eligible veterans, service members, and certain surviving spouses. The Department of Veterans Affairs doesn’t set a minimum credit score, but lenders establish their own approval standards.
The lender still reviews your credit history, income, debts, and the money left after major monthly expenses. A lack of a VA-set minimum doesn’t mean recent credit problems will be ignored.
Eligible borrowers can often purchase a home without a down payment. VA loans don’t require monthly mortgage insurance, although a funding fee may apply unless the borrower qualifies for an exemption.
Compare VA loan lenders rather than assuming their requirements are identical. Ask each lender about its credit score minimum and how it handles your specific credit history.
USDA Loan Credit Score Requirements
USDA loans can help eligible buyers purchase a primary residence without a down payment. The property must be in an eligible location, and household income must fall within program limits.
The USDA Guaranteed program doesn’t use one universal minimum credit score. Its underwriting system and the lender evaluate the application, and manual underwriting has additional documentation requirements.
Don’t assume USDA eligibility means the home must be on a farm. Some eligible locations include smaller towns and areas outside major cities.
Which Credit Score Do Mortgage Lenders Use?
The credit score in your banking app might differ from the credit score your mortgage lender uses. Different credit score models and differences among your credit reports can produce different results.
Classic FICO credit scores remain in use for mortgages. Approved Fannie Mae lenders can also choose VantageScore 4.0 credit scores for eligible loans through Desktop Underwriter, so it’s no longer accurate to say every mortgage lender uses only FICO credit scores.
Ask the lender which credit score model it uses and which credit score applies to your application. Our guide to which credit scores mortgage lenders use explains the model differences.
For a single borrower, a common approach is to use the middle of three credit scores or the lower of two. Joint applications need closer attention because the rules for loan eligibility and pricing aren’t always the same.
For example, Fannie Mae generally uses the lowest applicable borrower credit score for loan pricing. Adding someone with a higher credit score doesn’t automatically replace your credit score.
How Your Credit Score Affects Mortgage Costs
A good credit score can help you qualify for better mortgage terms. The benefit can include a lower interest rate, lower pricing adjustments, or lower private mortgage insurance costs on a conventional loan.
There isn’t one credit score that guarantees the best rate. The lender also considers your down payment, loan type, property, loan amount, and other details.
A small interest-rate difference can still affect your budget. Here’s an illustration for a $300,000 fixed-rate mortgage over 30 years:
| Interest Rate | Monthly Principal and Interest | Total Interest Over 30 Years |
|---|---|---|
| 6.50% | $1,896.20 | $382,633 |
| 6.75% | $1,945.79 | $400,486 |
The lower interest rate saves about $50 a month and $17,852 in interest over the full term. These are illustrative interest rates, not current offers or rates tied to particular credit scores.
The calculation assumes scheduled payments for all 30 years. It excludes loan fees, property taxes, homeowners insurance, mortgage insurance, and HOA dues.
Compare those other costs before choosing a mortgage. A lower interest rate with expensive upfront fees may be less attractive if you expect to sell or refinance soon.
What Else Do You Need to Qualify for a Mortgage?
Your credit score is only one part of mortgage approval. Lenders also need evidence that you can afford the payment and that the property meets the loan program’s requirements.
Income and Employment Documentation
Lenders review your income and whether it’s likely to continue. Employees may need pay stubs and W-2s, while self-employed borrowers may need tax returns and additional business documentation.
Ask about documentation before you start making offers. A recent job change, variable income, or self-employment can affect how the lender calculates qualifying income.
Debt-to-Income Ratio
Your debt-to-income ratio compares monthly debt obligations with gross monthly income. Gross monthly income means income before taxes and other deductions.
For example, suppose you earn $6,000 a month before taxes. If your proposed housing payment is $1,750 and your other monthly debt payments total $650, your debt-to-income ratio would be 40%.
The proposed housing payment should include the costs the lender counts for qualification, such as property taxes and required insurance. The maximum permitted debt-to-income ratio depends on the program, underwriting result, and lender.
Down Payment, Closing Costs, and Savings
Your down payment is only part of the cash you may need. Closing costs, prepaid expenses, and any required cash reserves also affect whether you can complete the purchase.
A larger down payment can reduce your loan amount and may improve certain loan terms. It doesn’t automatically overcome recent missed payments or other underwriting problems.
Property Condition and Appraisal
The home must meet the lender’s property requirements. Some loans require repairs before closing, while renovation-loan programs have separate rules.
A low appraisal can also change your financing. You may need to renegotiate the purchase price, contribute more cash, or reconsider the purchase if the lender won’t finance the original amount.
A lender can review many of these requirements during mortgage preapproval. Preapproval helps you set a purchase budget, but final approval still depends on the property and any remaining conditions.
Can You Buy a House With Bad Credit or No Credit History?
Bad credit and no credit history create different challenges. The first involves negative information in your credit history, while the second may leave the lender with too little information to evaluate.
Mortgage Options With Bad Credit
You may still have options to buy a house with bad credit. FHA loans and certain other mortgage programs can offer more flexibility, but the lender must still approve your complete application.
Ask what specifically prevents approval. A credit score below the lender’s minimum requires a different response from excessive monthly debt or recent missed mortgage payments.
A larger down payment, lower debt, or additional savings may help in some cases. An explanation letter can provide context, but it doesn’t erase negative information or override program requirements.
Our comparison of mortgage lenders for bad credit can help you identify lenders to contact. Confirm their current requirements before you apply.
If you plan to buy a house after bankruptcy, ask about the waiting period for your loan program and bankruptcy type. The event that starts the waiting period also matters.
Foreclosure rules depend on the mortgage program and circumstances. You should address foreclosure errors on your credit report, but a credit report correction doesn’t necessarily eliminate an underwriting waiting period.
When a Cosigner or Co-Borrower Could Help
A cosigner or co-borrower may help if the program permits it and the additional income improves the application. Their debts and credit history also become part of the lender’s review.
This isn’t a guaranteed solution for a low credit score. Joint-application rules can still leave your credit score relevant to eligibility or pricing.
Everyone who signs the loan takes on repayment responsibility. Missed payments can damage each borrower’s credit history, so the lender should explain the obligations before anyone agrees.
Mortgage Options With No Credit History
A borrower without a usable credit score may qualify through an eligible program that accepts nontraditional credit history. Rent, utility, or other payment records may help document a history of timely payments.
Ask a lender about these options before assuming you need to delay the purchase. Requirements differ, and some applications need manual underwriting.
If you have more time before buying, you can also build credit from scratch. A secured credit card may help if the issuer sends account information to the credit bureaus and you use the credit card responsibly.
An authorized-user account may also help establish credit history, but the effect depends on the account and credit score model. Don’t assume it guarantees mortgage approval or that every lender will accept it for the same purpose.
How to Improve Your Credit Before Applying for a Mortgage
Focus on actions that address the lender’s actual concerns. The right next step depends on whether you need to correct an error, lower balances, establish credit history, or meet another requirement.
Check All Three Credit Reports for Errors
Start with free copies of your credit reports from Equifax, Experian, and TransUnion. Review account ownership, balances, payment status, and any negative information.
Dispute inaccurate or incomplete information with the appropriate credit bureau and the company that supplied it. Keep copies of your documents and check that any corrections appear before the lender reassesses your application.
Lower Credit Card Balances
Your credit utilization ratio measures how much of your credit limits you use. Lower credit card balances can help your credit score and may reduce the monthly debt payments the mortgage lender counts.
The timing matters because the lender needs updated credit information. Ask when your card issuer sends balances to the credit bureaus and when the mortgage lender plans to check your credit again.
Don’t spend all your cash on debt repayment without checking your closing needs. You may still need money for the down payment, closing costs, and reserves.
Protect Your Payment History and Existing Accounts
A consistent payment history supports your application. Set reminders or automatic minimum payments to reduce the chance of a missed due date.
Your length of credit history also matters, so discuss account closures with your lender before making changes. Although credit mix can affect your credit score, don’t take out a new loan just to add another account type.
Avoid new credit applications or major financed purchases during the mortgage process unless your lender has reviewed the effect. New debt can change your credit score, monthly obligations, and approval status.
Know What Credit Repair Can and Can’t Do
You can dispute credit report errors yourself for free. A credit repair company may help organize disputes, but it doesn’t have special authority to erase accurate, current negative information.
The FTC’s credit repair guidance explains these limits. Neither a credit repair company nor a credit report correction can guarantee a particular credit score increase or mortgage approval.
If you want paid help, compare the services and costs of credit repair companies. Keep the decision separate from any promise that you’ll qualify for a home loan by a certain date.
If you need help choosing a starting point, our free credit rebuilding plan can help organize your next steps. Discuss those steps with your mortgage lender before making changes during an active application.
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What to Ask a Mortgage Lender Before You Apply
A useful lender conversation should give you more than a minimum credit score. It should identify the programs you could qualify for, the likely costs, and any obstacles you need to address.
Ask these questions before submitting an application:
- Credit score requirements: What minimum applies to this specific loan, and is it your requirement or the program’s requirement?
- Credit score model: Which credit score model will you use, and which borrower credit score will determine pricing?
- Underwriting options: Does my application qualify for automated underwriting, or would manual underwriting be appropriate?
- Approval obstacles: What specifically needs to change before you could approve the loan?
- Cash requirements: How much will I need for the down payment, closing costs, and reserves?
- Loan costs: What are the interest rate, lender fees, mortgage insurance costs, and total estimated monthly payment?
- Next steps: Should I pay down debt, correct a credit report error, save more cash, or wait before applying?
Compare lenders within a short period and ask whether each initial credit check will be a soft or hard inquiry. Mortgage credit score models generally account for rate shopping, but the applicable time window depends on the model.
An application and a new mortgage account can affect your credit score. Our guide to whether buying a house hurts your credit explains those effects.
Start with an accurate picture of your credit history and a payment you can afford. Then choose a lender who can explain your options and give you specific steps toward approval.
