Buying
What Credit Score Do You Need to Buy a House?
How credit scores affect your mortgage, the minimums for common loan types, and what to do if your score isn't where you want it yet.
There's no single magic number
The credit score you need depends on the loan type. A higher score gets you a better interest rate, which can save tens of thousands over the life of the loan — so it's worth understanding where you stand.
Typical minimums by loan type
- FHA loans — often available with scores as low as 580 (and sometimes lower with a larger down payment). A popular path for first-time buyers.
- Conventional loans — generally want 620 or higher, with the best rates at 740+.
- VA loans — no set government minimum, though lenders typically look for around 620.
- USDA loans — common in rural areas around Lima; lenders generally look for about 640.
Why the rate matters more than the minimum
Qualifying is one thing; the rate is another. The difference between a 660 and a 760 score can be a meaningfully higher monthly payment for the same house. Improving your score before you buy often pays off.
Quick ways to strengthen your score
- Pay every bill on time — payment history is the biggest factor.
- Lower your credit-card balances relative to limits.
- Don't open new credit lines right before applying.
- Check your reports for errors and dispute them.
Talk to a local lender early
A good lender will tell you exactly where you stand and what to fix. Get this conversation going months before you plan to buy.
Frequently asked
Can I buy a house with a 580 credit score?
Often yes, through an FHA loan, though you may need a larger down payment and will pay a higher rate. A local lender can confirm your options.
What credit score gets the best mortgage rate?
Generally 740 and above unlocks the best conventional rates. Below that, you can still qualify, but the rate — and your monthly payment — will be higher.
Talk to a local expert
Jeff Dulmage and the LV5 Real Estate Team have helped 1,000+ families across West Central Ohio. Get straight answers for your situation — no pressure.