What Credit Score Do You Need to Buy a House?

A 580 credit score can buy a house in Onalaska — here’s how. I’m Jeff Thompson, a senior loan officer and sales manager at Granite Bank’s Onalaska branch, NMLS# 256028. The credit score you need in the Coulee Region depends entirely on the loan program, and the floor is lower than most buyers assume: Granite Bank approves FHA and VA loans at a 580 score, USDA loans at 600, and conventional loans with no set minimum at all — what a low score costs you instead is a higher rate and mortgage insurance.

FHA, VA, USDA, and Conventional: Score Minimums at a Glance

Below is Granite Bank’s quick reference for the Coulee Region in 2026. These are the floors we use internally every day at our Onalaska branch — not the theoretical national minimums you’ll see quoted online, which often hide the real barriers behind them.

Conventional Loans Have No Set Minimum Score

Unlike FHA or USDA, conventional loans are priced rather than gated. At Granite Bank we don’t set a floor — we price every application individually through Fannie Mae and Freddie Mac, which spread the risk spread across the whole loan pool. The lower your credit score, the higher the interest rate you’ll be quoted and the longer you’ll pay private mortgage insurance (PMI) before your equity reaches about 20%.

Here’s what your score actually changes in practice. A buyer at 620 with 3% down gets a workable rate and PMI that drops off when they hit 20% equity. The same buyer at 720 locks in a meaningfully lower rate and a smaller monthly payment. And a buyer below 620 isn’t turned away — they’re quoted a higher rate and more PMI, and in many cases an FHA loan ends up cheaper despite its lifetime insurance. That’s why I run the numbers both ways before recommending a path.

FHA and VA Loans: 580 Score Minimum

As a mortgage professional who’s watched the Coulee Region for years, I tell first-time buyers that an FHA loan at Granite Bank accepts a 580 score with just 3.5% down — the most forgiving program around for someone who has rebuilt credit after a rough patch. The trade-off: FHA charges an upfront mortgage insurance premium plus an annual premium that continues for the life of the loan, so it’s not automatically the cheapest option — it’s the most accessible.

VA loans are a great option for military families in Onalaska. Veterans, active-duty service members, and many National Guard and Reserve members can get a VA loan with a credit score of 580 and no down payment. This program is one of the best in the Coulee Region because it doesn’t require private mortgage insurance. Veterans with a service-connected disability also don’t have to pay the funding fee.

VA loans are flexible because the government backs them. This means lenders can be more forgiving with credit scores than they are for conventional loans. Another key factor is residual income—the money left after paying for housing, debts, and living expenses. A veteran with a 600 credit score and manageable debt is often in better shape than someone with a 700 score but heavy financial burdens.

USDA Loans: 600 Score Minimum With 100% Financing

A USDA loan at Granite Bank requires a 600 score and funds 100% of the purchase price for properties in eligible rural areas — which is precisely where the Onalaska market pays off. Much of La Crosse County’s surrounding land, including stretches toward Holmen and the rural edges of the village, falls inside USDA-eligible boundaries, letting buyers skip a down payment entirely. Eligibility follows the US Department of Agriculture’s property map and income limits, which shift year to year, so I always confirm the address and the household income before recommending a USDA file over a conventional one.

The catch is that USDA loans are need-tested: income limits and location boundaries both apply, and the property must be your primary residence. In our trade area that often means accelerating from a starter home to a place with land, because the 600 floor and zero-down structure beat a conventional path once you’re inside the eligible map.

Beyond the score: debt, income, and the local market

The biggest error first-time buyers make isn’t chasing a number — it’s assuming the credit score sets the whole story. Your debt-to-income (DTI) ratio — what your new housing payment plus existing debts take out of your gross income — often decides a loan at any score. A buyer at 620 with a 30% DTI is easier to approve than someone at 720 carrying 50% of income in car and card payments.

On the market side, Onalaska and the wider La Crosse area have stayed notably in demand through 2026. Redfin reports the median sale price in Onalaska reached $357K over the three months ending August 2026, up 4.5% year over year, with homes selling after about 6 days on market. That competition reinforces the main point: a strong score widens your options, but a realistic score with a clean debt load and a solid down payment plan is what actually closes a house.

Next step: find your real number

Start with a 580 floor in mind for FHA and VA, a 600 for USDA, and no gate for conventional — then find out where you actually stand. Your score alone doesn’t decide this; the score plus your income, debts, and the property itself does. A quick preapproval conversation with a local loan officer turns a guess into a plan.