What credit score do I need to buy a house?

What credit score do I need to buy a house?

There’s no concrete answer, but experts say that with a score of 660 can help you qualify for a home loan. Scores of 660 or lower might mean ending up with a high interest rate and poor loan terms.

To qualify for an FHA loan, which often requires only 3.5% of your purchase amount as a down payment, you’ll need a minimum credit score of 580. However, because many lenders use underwriters that assume the financial risk, you may be able to get around the minimum if the underwriter agrees to an exception if you carry minimal debt or can prove substantial savings.

Right now, the average American’s credit score is 695, which is relatively high. For top-notch rates, aim to improve your credit score to around 740 before applying for a mortgage.

• Most conventional mortgages require a credit score of 620 or higher.
• Loans backed by the Federal Housing Administration require a minimum score of 500 to qualify for a 10% down payment and a minimum 580 for 3.5% down payment.

• USDA loans require a credit score of 640 or higher
• Veteran Affairs loans require no minimum credit score.