# What Credit Score Do You Need to Buy a House?

By Mark Karetskiy (@markkaretskiy) · Published 2026-08-29 · Updated 2026-08-29

Canonical: https://voce.com/@markkaretskiy/what-credit-score-to-buy-house-pm4ncs

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One of the first questions I hear from future homebuyers is:

"What credit score do I need to buy a house?"

Usually followed by:

"Mine isn't great."

Here's the good news.

Your credit does not have to be perfect to buy a home.

You also don't need an 800 credit score, despite what the internet may have led you to believe.

But your credit score does matter.

It can affect which mortgage programs are available, how much you need to put down, your interest rate, mortgage insurance, and sometimes whether the loan works at all.

The mistake is treating your credit score like a simple pass-or-fail number.

Mortgage credit is a little more complicated than that.

So instead of asking only:

**"Is my credit score high enough?"**

I want to know:

**"What mortgage options does my current credit profile give me, and is there anything worth improving before I buy?"**

Those are much better questions.

## There Isn't One Minimum Credit Score to Buy a House

Let's get this out of the way first.

There is no universal minimum credit score that applies to every mortgage.

Different loan programs have different requirements.

Individual lenders can also have their own guidelines beyond the underlying program requirements.

Your credit score is only one part of the approval.

We may also be looking at your:

Income.

Employment.

Monthly debts.

Down payment.

Cash reserves.

Property type.

Loan amount.

Overall credit history.

A buyer with a 640 credit score, stable income, manageable debt, and money in the bank may have a very different mortgage profile from another buyer with the exact same score.

That's why I don't like making mortgage decisions based on one number.

## What Credit Score Do You Need for a Conventional Loan?

Conventional loans generally reward stronger credit.

A score around 620 is commonly associated with the lower end of eligibility for many Conventional mortgage scenarios, but that doesn't mean every borrower with a 620 automatically qualifies.

The entire file still matters.

And there's another important distinction:

**Being eligible for a mortgage and getting attractive financing aren't necessarily the same thing.**

Credit can have a meaningful impact on Conventional loan pricing.

Two buyers purchasing the exact same house with the same down payment could receive different financing terms because their credit profiles are different.

Mortgage insurance can also be affected when you're putting less than 20% down.

So if someone tells me:

"Mark, I have a 640. Can I get a Conventional loan?"

My answer isn't going to stop at yes or no.

I want to see what the Conventional option actually looks like.

Then I want to compare it with the alternatives.

[\[Learn more: FHA vs. Conventional Loans: Which Is Better for a First-Time Buyer?\]](https://voce.com/@markkaretskiy/fha-conventional-loans-better-first-time-buyer-amcnjk)

## What Credit Score Do You Need for an FHA Loan?

FHA financing can be more forgiving for borrowers with lower credit scores.

Under FHA guidelines, a 580 credit score is commonly associated with the ability to use the program's 3.5% minimum down payment, while scores between 500 and 579 can require at least 10% down.

But there's an important catch.

Individual lenders may establish higher minimum credit requirements.

And once again, meeting a minimum score doesn't guarantee approval.

Your overall credit history, debt-to-income ratio, income, assets, automated underwriting findings, and other factors can still matter.

This is why you'll sometimes hear one lender say:

"We need a 620."

Then another lender says:

"We can potentially work below that."

They may both be telling the truth.

They're just working with different lending requirements.

## FHA Isn't Just for Buyers With Bad Credit

This is another misconception worth clearing up.

FHA isn't the "bad credit mortgage."

I've recommended FHA financing to buyers who could qualify for Conventional financing.

Why?

Because sometimes the FHA structure is simply better for that particular buyer.

Maybe the interest rate is more attractive.

Maybe the debt-to-income flexibility helps.

Maybe the overall payment works better.

Maybe the buyer's credit profile causes Conventional mortgage insurance or pricing to become expensive.

On the other hand, a borrower with stronger credit may find Conventional financing significantly more attractive.

The loan program should fit the borrower.

I'm not interested in putting someone into Conventional just so we can say they qualified for Conventional.

I want the better mortgage.

## What About VA Loans?

VA loans deserve a separate conversation because they're one of the best mortgage benefits available to eligible veterans, active-duty service members, and certain surviving spouses.

VA guidelines don't establish a single universal minimum credit score in the same way people often expect.

Lenders may establish their own credit requirements, and the borrower's overall credit profile still matters.

That's important because I've spoken with veterans who assumed they couldn't use their VA benefit because their credit wasn't perfect.

Don't make that decision yourself.

If you're eligible for VA financing, let someone who actually understands VA loans review the scenario.

A credit challenge doesn't automatically mean your VA benefit is off the table.  
  
Learn more: \[VA Loans Explained: The Complete Beginner's Guide\]

## Your Mortgage Credit Score Might Not Be the Score You're Looking At

This causes a lot of confusion.

You check your credit through a credit card app.

It says 718.

Then your mortgage lender pulls credit and says your qualifying score is 687.

Naturally, your first reaction is:

"Mark, what did you do to my credit?"

Nothing.

Consumers can have many different credit scores.

Different scoring models are used for different purposes.

The score you see through a consumer credit monitoring service may not be the same scoring model used for mortgage lending.

That's why I don't want someone spending six months making financial decisions based entirely on the number they're seeing in an app.

It's useful information.

It just may not be the exact number we're going to use.

## We Also Have to Determine Which Borrower Score Applies

This matters when more than one person is applying for the mortgage.

Each borrower can have multiple credit scores from the major credit bureaus.

Mortgage qualification follows specific rules for determining the applicable score for each borrower and then the loan's qualifying score.

The exact treatment can depend on the loan program and transaction.

The important takeaway is simple:

If you're buying with someone else, we can't necessarily use whichever person's credit score is highest and ignore the other borrower.

If both incomes are needed to qualify, the credit profiles of both borrowers may matter.

This is one of those areas where an actual mortgage review is much more useful than an online calculator.

## Your Credit Score Isn't the Only Thing on Your Credit Report That Matters

This is probably the biggest misconception about mortgage credit.

People become obsessed with the three-digit number.

I care about the report underneath it too.

We may need to evaluate:

Late payments.

Collections.

Charge-offs.

Bankruptcies.

Foreclosures.

Revolving credit balances.

Student loans.

Auto loans.

Personal loans.

Disputed accounts.

Recent credit inquiries.

New accounts.

Authorized-user accounts.

Payment history.

The score gives us a quick measurement of risk.

The credit report tells us the story.

And sometimes the story matters just as much.

## A 680 Isn't Always a 680

Let's say two buyers both have a 680 credit score.

Buyer A has a long credit history, several established accounts, low balances, and one old late payment.

Buyer B has several recently maxed-out credit cards, multiple new accounts, recent late payments, and a thin credit history.

Same score.

Very different credit profiles.

That's another reason I don't like telling someone:

"Get to 680 and you're good."

Good for what?

Which loan?

How much down?

What debt-to-income ratio?

What's happening on the rest of the report?

Credit score targets should have a purpose.

## Higher Credit Can Save You Money

Getting approved isn't the only reason credit matters.

A stronger credit profile may improve the economics of the mortgage.

Depending on the loan program and scenario, better credit can potentially mean:

Better interest-rate pricing.

Lower mortgage insurance.

More financing options.

Better flexibility in how we structure the loan.

Potentially lower upfront costs.

This is where improving your credit before buying can have a real return.

If increasing your score from 660 to 680 materially improves the financing, I want to know.

If going from 760 to 780 changes almost nothing in the particular mortgage we're considering, that's useful to know too.

We're not chasing credit points for fun.

We're trying to improve the transaction.

## Should You Wait to Buy Until Your Credit Score Is Higher?

Sometimes.

Sometimes not.

This is where I really don't like blanket advice.

Let's say your score is 655.

Maybe you can qualify today, but getting to 680 could meaningfully improve your pricing.

Then we look at what it would take.

If paying down a credit card could potentially get us there within 30 or 60 days, waiting may be worth considering.

But what if improving the score could take a year?

What if you're already eligible for attractive financing?

What if waiting means another year of rent?

What if home prices change?

What if your lease is ending?

What if the right house is available now?

There are multiple variables.

The goal isn't to have the prettiest credit score possible before you're allowed to own real estate.

The goal is to determine whether improving your credit creates enough financial benefit to justify waiting.

## Don't Start Randomly Paying Things Off

This is where people can accidentally make their situation worse.

Someone checks their credit, sees a score they don't like, and immediately starts doing things.

They close an old credit card.

Pay off a collection.

Open a secured card.

Dispute three accounts.

Move balances around.

Pay off every credit card completely.

Take out a credit-builder loan.

Some of those actions may help in certain situations.

Some may do very little.

Some can create unintended consequences during a mortgage transaction.

Please don't turn your credit report into a weekend DIY project.

If you're planning to buy a home, let's review the mortgage strategy first.

Then we can determine which actions, if any, are actually worth taking.

## Credit Card Balances Can Make a Big Difference

One area we frequently evaluate is revolving credit utilization.

That's essentially how much of your available revolving credit you're using.

If you have a credit card with a $10,000 limit and a $9,500 balance, that's a very different credit profile from carrying a $500 balance on the same card.

For some borrowers, strategically reducing revolving balances can improve their credit profile.

But even here, timing matters.

Credit reports generally reflect balances reported by creditors, which may not line up exactly with the day you make a payment.

So if we're working toward a specific mortgage timeline or credit target, I want a plan.

Not:

"I paid everything yesterday. Did my score go up yet?"

Credit bureaus, unfortunately, do not operate with the same sense of urgency as someone whose dream house just hit the market.

## Don't Close Old Credit Cards Just Because You Paid Them Off

You pay off a credit card and think:

"Great. I'm done with this thing forever."

Then you close the account.

That may not be the move we want.

Closing revolving accounts can affect your available credit and overall credit profile.

If your goal is improving mortgage qualification, don't assume closing an account helps simply because the balance is zero.

Ask first.

Especially if you're already under contract.

[\[Learn more: Why You Shouldn't Make Major Financial Changes Before Closing\]](https://voce.com/@markkaretskiy/major-financial-changes-before-closing-fb1te9)

## What About Collections?

Collections are one of the most misunderstood areas of mortgage credit.

People often assume every collection must be paid before they can qualify for a mortgage.

That's not universally true.

The treatment can depend on:

The loan program.

The type of collection.

The amount.

Whether it's medical or non-medical.

The overall credit profile.

Other underwriting requirements.

There are also situations where paying a collection immediately before applying for a mortgage may not affect your credit score the way you expected.

That's why I don't automatically tell someone to pay every collection before we've reviewed the file.

I want to know what problem we're trying to solve first.

## Late Payments Matter

Your payment history is important.

A late payment from several years ago may be viewed very differently from several late payments within the last few months.

Recent mortgage late payments can be particularly important.

But once again, context matters.

How recent was it?

What type of account?

Was it isolated?

Has credit been reestablished?

What does the rest of the file look like?

A late payment doesn't necessarily mean you can't buy a house.

It means we need to understand it.

## Bankruptcy Doesn't Mean You'll Never Buy a House Again

I've talked to plenty of people who went through bankruptcy and assumed homeownership was gone for the next decade.

Not necessarily.

Mortgage programs can allow financing after bankruptcy once applicable waiting periods and other requirements have been satisfied.

The rules can depend on the type of bankruptcy, loan program, discharge or dismissal dates, and circumstances.

The same general idea applies to previous foreclosures and other major credit events.

If you've had serious credit issues in the past, don't disqualify yourself based on something you read online.

Let's look at the actual timeline.

Sometimes you're closer to being mortgage-ready than you think.

Sometimes we need a longer game plan.

Either answer is useful.

## What If You Don't Have Much Credit?

Not having bad credit and having established credit aren't necessarily the same thing.

Some buyers simply don't use much debt.

Maybe you pay cash.

Maybe you've never had a car loan.

Maybe you only have one credit card.

Maybe your credit history is very limited.

That can create a different challenge because there may not be much information available to generate or support a traditional credit profile.

That doesn't automatically mean homeownership is impossible.

Depending on the loan program and circumstances, there may be ways to evaluate borrowers with limited traditional credit.

But this is another situation where starting early helps.

## How Early Should You Check Your Credit Before Buying?

Earlier than most people think.

If you're planning to buy six months from now, I'd rather talk today.

If you're thinking about buying next year, we can still have a useful conversation.

Why?

Because time gives us options.

If your credit is already strong, great.

Now we know.

If something needs attention, we have time to address it intelligently instead of trying to manufacture 30 credit-score points six days before you want to make an offer.

The best time to discover a credit issue is before you find the house.

[\[Learn more: Mortgage Pre-Qualification vs. Pre-Approval: What's the Difference?\]](https://voce.com/@markkaretskiy/mortgage-pre-qualification-approval-difference-9sykba)

## You Don't Need to "Fix Your Credit" Before Talking to a Lender

This is important.

I've had people tell me:

"I'm going to work on my credit for six months, then I'll call you."

My question is:

Work on what?

Maybe your credit already qualifies.

Maybe you're focusing on something that doesn't matter.

Maybe the biggest opportunity is paying down one specific account.

Maybe the credit score isn't actually the issue and we should be working on savings or debt-to-income instead.

You don't need to clean everything up before talking to me.

The conversation is how we figure out what, if anything, needs cleaning up.

## What If Your Credit Isn't Ready Yet?

Then we build a plan.

That's it.

Sometimes the best mortgage advice I can give someone today is:

"You're not quite ready yet."

That doesn't bother me.

I'd rather tell you the truth and give you a path forward than force a mortgage that doesn't make sense.

Maybe we need three months.

Maybe six.

Maybe longer.

We identify what's holding the file back, determine what you can control, and work toward a specific goal.

That's very different from simply saying:

"Your score is too low. Call me later."

Later isn't a strategy.

## Don't Let Credit Keep You From Starting the Conversation

If there's one thing I wish more future buyers understood, it's this:

You don't need perfect finances to begin planning.

You don't need 20% down.

You don't need an 800 credit score.

You don't need to know which mortgage program you want.

And you definitely don't need to be embarrassed about what's on your credit report.

I've seen a lot of credit reports.

You're probably not going to shock me.

My job is to figure out what options exist today and, if today's options aren't good enough, what we can do to improve them.

## So, What Credit Score Do You Actually Need to Buy a House?

It depends on the mortgage.

I know.

Very satisfying answer.

But it's the correct one.

A score around 620 may open the door to many Conventional scenarios.

FHA financing can potentially provide options for borrowers with lower scores, subject to program and lender requirements.

VA financing can offer additional flexibility for eligible borrowers.

And the minimum score that technically qualifies isn't necessarily the score that produces the mortgage I'd recommend.

That's why I don't want you aiming for an arbitrary number.

I want to figure out:

Where your credit stands today.

Which mortgage options are available.

What those options actually cost.

Whether improving your credit would meaningfully improve the financing.

And whether waiting to improve it makes sense based on your goals.

That's mortgage planning.

If you're thinking about buying a home in Dallas-Fort Worth or anywhere in Texas and you're not sure whether your credit is ready, start the conversation early.

We'll look at where things stand, what options you may have, and whether there's anything worth improving before you start seriously shopping.

You don't need perfect credit to make a plan.

You just need to know what you're working with.

You can learn more about my team, read our client reviews, or start a secure application at:

[www.LoanOfficerMark.com](http://www.LoanOfficerMark.com)

### About Mark Karetskiy

**Mark Karetskiy**  
Mortgage Strategist | Branch Leader | Loan Originator  
Movement Mortgage  
NMLS #1254891  
Licensed in TX, NM, CA & OH

Mark Karetskiy is a Mortgage Strategist with Movement Mortgage serving homebuyers, homeowners, veterans, and real estate investors. With more than twelve years in the mortgage industry and hundreds of families served, Mark focuses on strategic mortgage planning, creative financing solutions, and helping clients understand how their mortgage fits into their bigger financial picture.

Whether it's buying a first home, using VA benefits, financing an investment property, refinancing, or solving a complicated scenario, his approach is simple: educate first, communicate clearly, and structure the financing around the client's goals instead of just selling a rate.

Movement Mortgage is licensed in all 50 states, giving Mark and his team the ability to help clients and referral partners with mortgage financing nationwide.

**Work:** 469-202-4195  
**Cell:** 857-544-3158  
**Office:** 5840 Legacy Circle, Ste 250, Plano, TX 75024  
**Website:** [www.LoanOfficerMark.com](www.LoanOfficerMark.com)**Book a Consultation:** [www.calendly.com/loanofficermark](https://calendly.com/loanofficermark)

## Continue Learning

[\[Mortgage Pre-Qualification vs. Pre-Approval: What's the Difference?\]](https://voce.com/@markkaretskiy/mortgage-pre-qualification-approval-difference-9sykba)

[\[FHA vs. Conventional Loans: Which Is Better for a First-Time Buyer?\]](https://voce.com/@markkaretskiy/fha-conventional-loans-better-first-time-buyer-amcnjk)

[\[How Much House Can I Actually Afford?\]](https://voce.com/@markkaretskiy/how-much-house-can-i-actually-afford-u929te)

[\[How Much Money Do You Really Need to Buy Your First Home?\]](https://voce.com/@markkaretskiy/how-money-to-buy-first-home-w4ifga)

[\[Down Payment Assistance: How Does It Actually Work?\]](https://voce.com/@markkaretskiy/down-payment-assistance-actually-work-mlb2p5)

[\[Why You Shouldn't Make Major Financial Changes Before Closing\]](https://voce.com/@markkaretskiy/major-financial-changes-before-closing-fb1te9)

[\[Why Putting 20% Down Isn't Always the Smartest Financial Decision\]](https://voce.com/@markkaretskiy/putting-down-more-isn-always-best-1kl0ue)

[\[Buying Your First Home: A Step-by-Step Guide from Pre-Approval to Closing\]](https://voce.com/@markkaretskiy/buying-first-home-step-guide-pre-approval-closing-raitko)