The Surprising Credit Score You Actually Need To Buy a Home

If you’ve ever thought, “My credit isn’t perfect, so I probably can’t buy a house yet,” you’re not alone. According to Fannie Mae, 90% of buyers either don’t know what score lenders are looking for, or they think the minimum is higher than it really is.

That means a lot of people might be putting off their dream of homeownership for no reason at all. So, let’s clear the air about credit scores and what they mean when it comes to buying a home.

There’s No One Magic Number

Here’s the truth: there isn’t a universal “must-have” credit score to buy a home. Different loan types come with different ranges. For example, the median credit scores of recent buyers vary depending on whether they used a conventional loan, FHA, or VA loan.

What matters here is that there’s no single cutoff. As FICO explains:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

Translation? Even if your credit isn’t flawless, you may still qualify for a loan.

Why Your Score Still Matters

While there isn’t a hard-and-fast rule, your score does influence a few things:

• Loan types you qualify for

• Your mortgage rate

• The terms on your loan

And since mortgage rates affect how much house you can afford, your score does play a big role. As Bankrate puts it:

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

So no, your credit doesn’t need to be perfect—but improving it could save you serious money.

Want To Boost Your Score? Start Here

If you chat with a lender and realize you want to strengthen your score before buying, here are some practical tips from the Federal Reserve:

✅ Pay Your Bills on Time: This includes everything—credit cards, car loans, utilities, even your phone bill. Consistency is key.
✅ Pay Down Debt: The less credit you’re using compared to your limit, the better. Aim to keep balances low.
✅ Check Your Credit Report: Mistakes happen—dispute errors that may be dragging your score down.
✅ Hold Off on New Accounts: Opening too many new credit cards at once can hurt more than help.

The Bottom Line

Your credit score doesn’t have to be sky-high to buy a home. But the better it is, the more options you’ll have—and the better your loan terms will likely be.

The smartest move? Talk to a trusted lender. They can tell you exactly where you stand and what options you have today—without all the guesswork.