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Your credit score can make or break your mortgage. It affects whether you get approved. It also affects your interest rate. A higher score can save you thousands of dollars.
Here is what you need to know about credit scores and home buying in 2026.
Rates and figures as of May 2026.
Minimum Credit Score by Loan Type
| Loan Type | Minimum Credit Score | Down Payment |
|---|---|---|
| FHA Loan | 500 (with 10% down) or 580 (with 3.5% down) | 3.5%–10% |
| Conventional Loan | 620 | 3%–20% |
| VA Loan (veterans) | No official minimum (most lenders require 620) | 0% |
| USDA Loan (rural areas) | No official minimum (most lenders require 640) | 0% |
| Jumbo Loan | 700–720 | 10%–20% |
FHA Loans: Best for Lower Scores
FHA loans are backed by the government. They allow lower credit scores than most loans. You can get an FHA loan with a score as low as 500. But you will need a 10% down payment at that score. With a 580 score, you only need 3.5% down.
See the full FHA loan requirements for 2026 to learn more.
Conventional Loans: Most Common Type
Most homebuyers use a conventional loan. You need at least a 620 credit score. The higher your score, the better your rate. A score of 740 or above gets you the best rates on conventional loans.
VA and USDA Loans: Zero Down Options
VA loans are for veterans and active military. USDA loans are for homes in rural areas. Both allow zero down payment. Most lenders want to see a 620–640 score for these loans.
Learn more in our guides to VA loan requirements and USDA loan requirements for 2026.
How Your Credit Score Affects Your Mortgage Rate
Your score does not just determine if you qualify. It also affects your rate.
| Credit Score Range | Estimated 30-Year Rate (May 2026) |
|---|---|
| 760–850 | ~6.50% |
| 700–759 | ~6.75% |
| 660–699 | ~7.00% |
| 620–659 | ~7.50% |
| 580–619 | ~8.25% |
A 0.50% rate difference on a $300,000 mortgage is about $100 more per month. Over 30 years, that is $36,000 extra. A better credit score saves real money.
How to Improve Your Score Before Applying
- Pay bills on time. Payment history is the biggest factor in your score.
- Pay down credit card balances. Keep your usage below 30% of your limit.
- Do not open new credit accounts. New accounts lower your average account age.
- Check your credit report for errors. Mistakes happen. Dispute any errors you find.
For a full guide, read how to improve your credit score in 2026.
Frequently Asked Questions
What credit score do I need to buy a house in 2026?
It depends on the loan type. FHA loans require a 580 score for 3.5% down. Conventional loans need 620. VA and USDA loans have no official minimum but most lenders want 620–640.
Can I buy a house with a 500 credit score?
Yes, with an FHA loan. But you will need a 10% down payment and will likely pay a higher interest rate.
How much does a low credit score cost on a mortgage?
A lower credit score means a higher interest rate. On a $300,000 loan, going from a 620 to a 760 score could save you $50,000 or more over the life of the loan.
How long does it take to raise your credit score to buy a house?
It depends on your starting point. Small improvements can happen in 30–60 days. Major improvements, like going from poor to good credit, may take 6–24 months.
Does getting pre-approved hurt your credit score?
A mortgage pre-approval requires a hard inquiry, which may lower your score by a few points temporarily. Multiple mortgage inquiries within 45 days count as one inquiry under the rate-shopping rule.