| Loan Type | Minimum Score | Ideal Score | Down Payment |
|---|---|---|---|
| Conventional | 620 | 740+ | 3-20% |
| FHA Loan | 500 (10% down) / 580 (3.5% down) | 680+ | 3.5-10% |
| VA Loan | No minimum (lender sets 580-620) | 720+ | 0% |
| USDA Loan | 640 | 700+ | 0% |
| Jumbo Loan | 700 | 760+ | 10-20% |
Your credit score doesn't just determine if you get approved — it determines how much you pay. Here's the real impact on a $300,000 mortgage over 30 years:
| Credit Score | Estimated Rate | Monthly Payment | Total Interest |
|---|---|---|---|
| 760–850 | 6.5% | $1,896 | $382,560 |
| 700–759 | 6.8% | $1,953 | $403,080 |
| 680–699 | 7.2% | $2,038 | $433,680 |
| 660–679 | 7.8% | $2,154 | $475,440 |
| 640–659 | 8.5% | $2,307 | $530,520 |
| 620–639 | 9.2% | $2,463 | $586,680 |
The difference between a 760 and a 620 score: $567/month more and $204,120 more in total interest over the life of the loan. Your credit score is worth working on before you buy.
| Action | Potential Score Increase | Timeline |
|---|---|---|
| Pay down to 10% utilization | 20-50 points | 1-2 months |
| Fix credit report errors | 10-100 points | 1-3 months |
| Authorized user on old account | 10-30 points | 1-2 months |
| 12 months on-time payments | 40-100 points | 12 months |
| Pay off collections | 10-50 points | 1-3 months |
If your score is 660 and you could improve to 740 in 6 months, here's the calculation:
6 months of waiting could save you nearly $93,000. Unless home prices rise significantly during that time, improving your score first is almost always worth it.
Credit score is important, but lenders also evaluate:
Before shopping for homes, get pre-approved by 2-3 lenders. This tells you exactly what rate you'll get and how much you can borrow. Multiple mortgage inquiries within 14-45 days count as one hard inquiry — so shopping around doesn't hurt your score.
Enter your home price, down payment, and interest rate to calculate your exact monthly payment.
Use Free Mortgage Calculator →The minimum credit score to buy a house is 500 for FHA loans (with 10% down payment) or 580 for FHA loans with 3.5% down. For conventional loans, the minimum is typically 620. However, getting a good interest rate requires a score of 700-740 or higher.
Yes, you can buy a house with a 600 credit score using an FHA loan. However, your interest rate will be significantly higher than someone with a 740+ score. On a $300,000 mortgage, a 600 score could cost you $300-400 more per month and over $100,000 more in total interest compared to a 740 score.
If your score is in the 600-650 range, you can typically improve it to 680-700 in 3-6 months by paying down credit card balances and fixing any errors. Getting from 650 to 740+ usually takes 12-24 months of consistent on-time payments and low utilization.
A mortgage application results in a hard inquiry that may lower your score by 5-10 points temporarily. However, if you shop with multiple lenders within a 14-45 day window, all those inquiries count as just one. Your score typically recovers within a few months.
The minimum credit score for a conventional loan is 620. However, to avoid paying Private Mortgage Insurance (PMI) and to get the best rates, you typically need a score of 740 or higher. With 20% down and a 740+ score, you'll qualify for the most competitive mortgage rates available.