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What Score Do I Need To Buy A House?

Be it in the past or present, everyone dreams of purchasing their own homes, a place of their own to settle down and build their family with their special someone. It could be very thrilling but at the same time, it could also be overwhelming and frightening.

Most first-time home buyers don't have enough capital to pay for the house in one transaction. As a result, they would have to take out a loan, but you need to pass a minimum credit score requirement before you can qualify for the best mortgage rates.

Prospective home buyers should strive to reach credit scores that range from 760 or more before even considering a mortgage loan.

If you currently don't have this credit score, don't worry because the requirements vary depending on your type of loan and who insures it. Some require high scores but others, like government-insured loans don't necessarily need high scores.

If you want to know more about the minimum requirements for mortgage loans, check out the small list we have compiled.

Jumbo Loan

Minimum credit score required: 680

A jumbo loan, just like its name, is a mortgage loan that exceeds the amount set by the government-sponsored giants Fannie Mae and Freddie Mac.

If you plan to purchase a mansion or a house in an upscale neighborhood, you will need this kind of loan. However, this type of loan is riskier, and the borrowers tend to enforce stricter and higher credit score requirements.

FHA Loan

Minimum credit score required: 500 (with 10% down) or 580 (with 3.5% down)

The Federal Housing Administration is insuring this loan, and people who have low scores are the ones who usually sought this kind of loan as they are deemed high risk by other lenders. The required credit scores may vary depending on how much money you can afford to give as a down payment.

If you have a higher score, then lenders will probably let you make a lower down payment.

For example, if you have a 580 credit score, you can just put in a 3.5% down payment. But if you have a lower score, say you're only on 500, then you would have put a 10% downpayment.

Conventional Loan

Minimum credit score required: 620

Government agencies do not insure these types of loans. Instead, these loans follow the standards set by government-sponsored companies Fannie Mae and Freddie Mac. Conventional loans are secured either by a private lender or one of these companies. Compared to others, these loans are more affordable and only require a credit score of 620.

Government-insured Loans

VA Loan

Credit score required: While none is listed officially, most lenders still prefer if the borrowers have at least a credit score of 620.

These loans don't need a down payment as the U.S. Department of Veteran Affairs guarantees these loans. They are for eligible members of the military as well as their spouses.


Minimum credit score required: Again, no minimum credit score is officially listed but most lenders still prefer if you at least have a score of 620.

These loans are for low-to-moderate-income home buyers. The U.S. Department of Agriculture insured these loans, and similar to the VA loans, the USDA doesn't need a down payment, and there is no minimum credit score set but most lenders usually require borrowers a credit score of 640 or more. If you plan to purchase your own home this year, we can start by taking a look at your credit score and improve it in a way that your homeownership becomes most favorable for you. Our specialists are on standby 24/7 if you need guidance in improving your credit score.

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