Your Credit DOES NOT Need to be Perfect to Buy a Home

What Credit Score Do You REALLY Need?

Jenny Jones, The Jones Team at Baird & Warner  |  6 min read  |  Last reviewed: September 2026

Maybe you’ve already decided your credit isn’t good enough to buy a house.

You checked an app.

You saw a number.

You remembered that one late payment from approximately the Jurassic period.

And somewhere along the way, you heard that you need a 700...or a 720...or a 740...or possibly an 847 and a handwritten recommendation from Experian.

So you did what a whole lot of renters do:

You disqualified yourself before anybody actually qualified you.

Here’s the problem.

There is not one magical credit score that determines whether you can become a homeowner.

Yep.

Another homebuying rule that isn’t nearly as neat and tidy as the internet made it sound.

So...what credit score DO you need?

The mildly annoying but completely accurate answer is:

It depends.

Your credit score matters. Absolutely.

But mortgage approval isn’t based on your credit score alone.

Different loan programs have different guidelines. Different lenders can have different requirements. And when a lender evaluates a mortgage application, they’re looking at a much bigger financial picture that can include things like:

• ◆your credit history,
• ◆your income,
• ◆your existing monthly debts,
• ◆your available funds and assets,
• ◆the type of mortgage you’re using,
• ◆and the overall strength of your application.

In other words:

Your credit score is important.
It is not your entire financial personality.

And that distinction matters.

“But I heard you need at least a 620.”

You’ve probably heard some version of this.

And sometimes numbers like 620 are useful reference points when people talk about conventional financing.

But turning that into:

“Anyone under 620 can’t buy a house.”

is way too simplistic.

Conventional mortgages can be evaluated through automated underwriting systems that consider multiple pieces of the borrower’s financial profile.

Specific programs and lenders may also have their own requirements.

Translation?

There isn’t one universal conventional mortgage number that answers every borrower’s situation.

This is exactly why Googling “What credit score do I need to buy a house?” can produce seventeen answers before breakfast.

They’re often talking about different loans, different underwriting situations and different lender requirements.

FHA gives us a clearer example.

FHA financing is commonly used by buyers who may have less money saved or credit that isn’t perfect.

Current FHA guidelines generally allow maximum financing for borrowers with qualifying credit scores of 580 or higher, which can permit a down payment as low as 3.5%.

Scores between 500 and 579 may still fit within FHA guidelines in certain situations, but the maximum loan-to-value is lower—which generally means a larger down payment would be required.

Now before anyone takes that sentence, runs into the street and yells:

“JENNY SAID I CAN BUY A HOUSE WITH A 500!”

No.

Settle down, Sparky.

Those are program guidelines.

A lender still has to approve the loan, and lenders can have additional requirements.

Which brings us to one of the most important things to understand about mortgage credit:

Loan-program rules and lender rules are not always exactly the same.

That is why two people with similar credit scores can have very different financing conversations.

VA loans are another great example.

If you’re an eligible veteran, active-duty service member or qualifying surviving spouse, VA financing can offer some incredible benefits.

And here’s something a lot of people don’t know:

The Department of Veterans Affairs itself does not establish a minimum credit-score requirement for VA loans.

Individual lenders, however, can establish their own requirements.

Which once again proves the point:

There is no single three-digit number floating above your head that automatically decides whether you’re allowed to buy a home.

Your situation needs to actually be evaluated.

And USDA isn’t just “you need a 640” either.

USDA financing is another program where you may hear one particular credit score tossed around like it’s a universal rule.

But USDA’s automated underwriting process evaluates the overall loan file, not just one score.

That doesn’t mean credit stops mattering.

It means the answer is more nuanced than:

Score = yes.

or

Score = absolutely not, go back to renting forever.

Mortgage underwriting is rarely that dramatic.

The internet, however?

Very dramatic.

“Okay, but my app says my score is 672.”

Great.

That is useful information.

But here’s something most consumers don’t realize:

You don’t have just one credit score.

There are different scoring models.

Different lenders can use different versions.

Scores can also vary depending on which credit bureau supplied the information and when the score was calculated.

Mortgage lenders commonly use FICO credit scores pulled from the major credit bureaus as part of their evaluation.

That means the score you see in a free consumer app may not be identical to the score a mortgage lender sees.

Your app isn’t necessarily wrong.

It just isn’t sitting at the closing table holding your mortgage documents.

So if you’ve been staring at one number on your phone and using it to decide:

“Nope. I definitely can’t buy.”

you may be making a pretty large financial assumption with incomplete information.

There are actually TWO credit questions future homeowners should ask.

Most people only ask:

“Is my credit good enough to qualify?”

That’s an important question.

But there’s another one that can be just as valuable:

“Would improving my credit put me in a better buying position?”

Because credit isn’t only about getting approved.

Credit can also affect things like your mortgage options, your interest rate and ultimately how much borrowing costs you.

Generally, stronger credit can give borrowers access to better loan choices and potentially better pricing.

So imagine three future homeowners:

None of those people failed.

They just have different starting points.

And knowing which one you are is a whole lot more useful than guessing.

Please stop trying to become your own mortgage underwriter.

I say this lovingly.

You do not need to spend six months reading Reddit threads, watching TikToks and reverse-engineering FICO algorithms before you’re allowed to ask questions about buying a house.

You also shouldn’t randomly start:

• ◆paying off every account,
• ◆closing credit cards,
• ◆opening new credit,
• ◆moving balances around,
• ◆or making major financial changes

because somebody on the internet said it would “boost your score fast.”

Some financial moves can affect mortgage qualification in ways you may not expect.

That’s why the smartest first move isn’t:

“FIX EVERYTHING.”

It’s:

Find out where you actually stand.

Maybe you’re ready.

Maybe you’re close.

Maybe you need a little time.

All three answers are valuable because now you’re working from information instead of assumptions.

Where People Get Tripped Up

People commonly:

What This Doesn’t Mean

This article does NOT mean “credit doesn’t matter.” It absolutely does.

It also doesn’t mean:

Our message is much more responsible:

Your credit matters—but one number doesn’t tell your entire homebuying story.

The Future Homeowner Bottom Line

You don’t need to know today whether you’ll buy a home next month, next year or three years from now.

That’s not what the Future Homeowner Plan is about.

It’s about turning:

“I probably can’t.”

into:

“Let’s actually find out.”

Because once you know where you really stand, you can make a plan.

And plans?

Those are a whole lot more useful than imaginary rejection letters you wrote yourself.

Credit Score FAQ

Educational Note: Mortgage programs, underwriting requirements, interest rates and lender guidelines can change and may vary based on the borrower, property, loan program and lender. This article is intended for general educational purposes and is not financial, credit, lending or legal advice. A licensed mortgage professional can evaluate your individual circumstances and current financing options.

Sources

• U.S. Department of Housing and Urban Development — FHA Single Family Housing Policy Handbook
• Consumer Financial Protection Bureau — mortgage and credit-score guidance
• Fannie Mae Selling Guide — credit-score requirements
• Freddie Mac Single-Family guidance
• U.S. Department of Veterans Affairs — VA Home Loan guidance
• USDA Rural Development — Guaranteed Underwriting System guidance

Educational Note: Mortgage programs, underwriting requirements, interest rates and lender
guidelines can change and may vary based on the borrower, property, loan program and
lender. This article is intended for general educational purposes and is not financial, credit,
lending or legal advice. A licensed mortgage professional can evaluate your individual
circumstances and current financing options.

Last reviewed for program accuracy or availability: September 9, 2026