What credit score do I need to buy a house in 2026?

Your credit score is one of the first things lenders look at when you apply for a mortgage. It tells them how you've managed debt in the past and helps them decide whether to approve your loan (and at what rate). The good news: you don't need perfect credit to buy a house, and there are programs designed for buyers at different score levels.

Minimum credit scores by loan type

Different mortgage programs have different credit requirements. Here's what you need to qualify:

Conventional loans typically require a minimum credit score of 620. These loans aren't backed by the government, so lenders set their own standards. If your score is above 740, you'll usually get the best rates and terms.

FHA loans are more flexible. The Federal Housing Administration allows scores as low as 500, but most lenders require at least 580 to qualify for the 3.5% down payment option. If your score is between 500 and 579, you'll need to put down at least 10%.

VA loans don't have an official minimum score set by the Department of Veterans Affairs. However, most lenders require a score of at least 580 to 620. If you're a veteran or active-duty service member, this program offers 0% down with no mortgage insurance.

USDA loans help buyers in eligible rural and suburban areas. The program doesn't set a hard minimum, but most lenders want to see at least 640. Like VA loans, USDA loans offer 0% down for qualifying buyers.

Pro tip: Your CityWorth advisor can check your score and tell you exactly which programs you qualify for before you start shopping. They'll also explain how a few extra points could save you thousands over the life of your loan.

How your credit score affects your mortgage rate

Your score doesn't just determine approval. It also affects the interest rate you'll pay, and even small differences add up fast.

Lenders use your score to assess risk. A higher score signals that you're more likely to make on-time payments, so they offer better terms. A lower score means higher risk, which translates to a higher rate or stricter conditions.

The good news: even if your score isn't perfect, you can still buy a home. You might just pay a bit more in interest until you have a chance to refinance later.

What to do if your score is below the minimum

If your credit score falls short of what you need, you have options. You're not stuck waiting years to become a homeowner.

Consider an FHA loan. With a minimum score of 580 (or even 500 with a larger down payment), FHA loans open the door for buyers who don't qualify for conventional financing. Your CityWorth advisor can walk you through the numbers and show you what your monthly payment would look like.

Add a co-borrower. If a family member with good credit is willing to co-sign, their score can help you qualify. Just know that they'll be equally responsible for the loan, so this step requires trust and clear communication.

Work on your score for a few months. Sometimes a short delay makes a big difference. Paying down a credit card balance or disputing an error on your report can boost your score faster than you think.

Ask about manual underwriting. Some lenders will consider your full financial picture, not just your credit score. If you have steady income, low debt, and a strong payment history on rent or utilities, manual underwriting might help you get approved.

Common credit mistakes that hurt homebuyers

Many buyers accidentally damage their credit right before applying for a mortgage. Here are the mistakes to avoid:

• Opening new credit cards. Every new account triggers a hard inquiry, which can drop your score by a few points. Even worse, it lowers the average age of your credit, which also hurts your score.
• Closing old accounts. You might think closing unused cards will help, but it actually reduces your available credit and can raise your utilization ratio. Keep those old cards open, even if you don't use them.
• Making large purchases on credit. Financing a car or buying new furniture before closing can spike your debt-to-income ratio. Lenders pull your credit again right before closing, and a new loan can derail your approval.
• Missing payments. Even one late payment can drop your score significantly. Set up autopay for all your bills during the homebuying process.
• Ignoring errors on your report. Mistakes happen. Check your credit report from all three bureaus (Equifax, Experian, TransUnion) and dispute anything that looks wrong. Correcting an error can add points to your score in a matter of weeks.

Your CityWorth advisor will give you a clear game plan before you apply, so you know exactly what to avoid and what steps to take.

How long it takes to improve your credit score

If you need to raise your score before buying, the timeline depends on where you're starting and what's holding you down.

Paying off a maxed-out credit card can boost your score within one to two billing cycles. Credit utilization (how much of your available credit you're using) makes up 30% of your score, so dropping from 90% utilization to 30% can add 20 to 50 points.

Disputing an error can take 30 to 45 days. The credit bureaus have to investigate and respond, and if the item is removed, your score can jump quickly.

Building a payment history takes longer. If you're recovering from late payments or collections, you'll need at least six months of on-time payments to show lenders you're back on track. The impact grows over time as the negative marks age.

Recovering from serious issues (bankruptcy, foreclosure) can take one to two years before you qualify for most programs. FHA loans allow buyers to apply two years after a bankruptcy discharge or three years after a foreclosure, as long as you've rebuilt your credit in the meantime.

The key is to start early. Even if you're not ready to buy today, working on your credit now means better rates and more options when you are ready.

Frequently asked questions

Will checking my credit score hurt my credit?

No. When you check your own credit (called a soft inquiry), it doesn't affect your score at all. Hard inquiries happen when a lender pulls your credit to make a lending decision, and those can ding your score by a few points. Mortgage shopping is different: multiple mortgage inquiries within a 45-day window count as a single hard pull, so you won't be penalized for getting pre-approved.

How much does a co-signer help my credit score?

A co-signer doesn't change your credit score, but their score can help you qualify for a loan you wouldn't get on your own. Lenders will consider the co-signer's income and credit alongside yours, which can offset a lower score or higher debt-to-income ratio. Just remember that the co-signer is equally responsible for the loan.

Should I wait to buy a house until my credit score is perfect?

Not necessarily. If you're at or above the minimum for the loan type you want, buying now might make sense. Waiting a few months to improve your score can save you money on interest, but waiting years could mean missing out on home price appreciation or rising rates. Your CityWorth advisor can help you run the numbers and decide whether it's smarter to buy now or wait.

How CityWorth makes homebuying simple

At CityWorth, your mortgage advisor and real estate agent work together under one roof. That means no coordination headaches, faster answers, and a smoother path to closing. Your advisor will pull your credit, explain your options, and help you get pre-approved with confidence.

Ready to find out what you qualify for? Start your pre-approval at /get-started or call the CityWorth team at 571-520-8688. We'll review your credit, talk through the loan programs that fit your situation, and connect you with a CityWorth Agent who can start showing you homes right away.