What Credit Score Do You Need to Buy a House in 2026?
The short answer: you can buy a house with a credit score as low as 500 — but the price of doing so is brutal, and the smart move is usually a few months of repair first. Here are the actual program minimums, and — more useful — what each score band does to your payment.
Program minimums (2026)
| Loan type | Typical minimum score | Notes |
|---|---|---|
| Conventional | 620 | Under 640 often means tighter terms and higher PMI |
| FHA | 580 (3.5% down) | 500–579 possible with 10% down; lenders may overlay higher |
| VA | No official minimum | Lenders typically want 580–620+ |
| USDA (rural) | 640 (streamlined) | Below 640 requires manual underwriting |
| Jumbo | 700+ | Often 720+ for the best pricing |
Two caveats matter as much as the minimums. First, lenders add their own overlays — a program might allow 580 while the lender you applied to wants 620, so being rejected by one lender doesn't mean rejection everywhere. Second, the minimum gets you approved; it does anything but get you a good price.
What each band costs you: the real numbers
Mortgage pricing is scored in bands (LLPAs). The payment difference between bands is where years of credit repair pay off. Illustrative example — $300,000 loan, 30-year fixed:
| FICO band | Illustrative rate | Monthly P&I | vs top band, per month |
|---|---|---|---|
| 760+ | ~6.25% | ~$1,847 | — |
| 700–719 | ~6.50% | ~$1,896 | +$49 |
| 660–679 | ~6.85% | ~$1,964 | +$117 |
| 620–639 | ~7.35% | ~$2,069 | +$222 |
The bottom band pays roughly $2,700 more per year and about $80,000 more over 30 years than the top band — before counting higher PMI, which also prices by score. Model your own band in the mortgage calculator to see the payment at different rates.
The fastest score moves before applying
- Pay revolving balances below 30% of limits — ideally under 10%. Utilization is the second-heaviest score factor and updates within a month or two of a payoff. A maxed $5,000 card dropping to $500 can move a score 20–50 points.
- Dispute reporting errors. Roughly a fifth of reports contain material errors; a removed late-payment or collection can jump a score. Free weekly reports at annualcreditreport.com.
- Don't open or close accounts in the 3–6 months before applying. New credit dings the score; closing old cards raises utilization. Both are self-inflicted wounds.
- Become an authorized user on a family member's old, well-paid card if your file is thin — a legitimate, fast history boost.
- If you're near a band edge, fight for the higher band. Moving from 715 to 720+ matters more than 715 to 759, because pricing steps are by band. Ask a lender which band you're in — see how lenders price your rate.
Two things people get wrong
- Waiting for "perfect" credit. Above ~760 the pricing bands flatten — chasing 800 saves almost nothing over 760. If you're at 740 with a stable income, you're shopping from strength; don't rent for two more years chasing a number that changes nothing.
- Shopping with one lender after being pre-qualified once. Whatever your score, quotes vary enormously between lenders — multiple inquiries within a two-week window count as one for scoring purposes. Score + shopping together is where the real savings are.
Credit score sets your price. Rate shopping sets your lender. You need both — and only one of them takes months.
Bottom line
620 opens the conventional door and 580 opens FHA, but the bands between 620 and 760 are where tens of thousands of dollars live. Six months of utilization repair and error disputes is frequently worth more than a year of extra saving — and both together are the ideal setup. Then price the whole picture in the mortgage calculator before you fall in love with a listing.
Informational only — not financial or credit advice. Program rules and pricing change; confirm with lenders.