What Credit Score Do I Need to Buy a House?

Your credit score is one of the prime factors in determining if you are qualified for a loan and the interest you will pay. Credit scores can fall into the range of 300 to 850.

There are a variety of loans to meet the needs of borrowers with credit scores as low as 580 to as high as 760 and above. The minimum credit score required will depend on the type of loan you get and what entity is insuring the loan.

Buyers with credit scores of 580 to 619 can qualify for an FHA or VA loan with minimum down payments. For a USDA loan, the minimum score is 640. Higher than the minimum credit scores and larger down payments will typically benefit the interest rate you will pay on the loan.

Since conventional loans are not insured by the government, credit scores of at least 620 or higher are required by most lenders. Larger loans will fall into the jumbo loan category, where a credit score of at least 700 is needed. As the loan amount increases so may the credit score requirement.

The best credit score to buy a house is 760 and higher according to the FICO credit bureau statistics. The higher the credit score, the more optimal the interest rate that you will pay.

Please give me a call or email me and we can see how your credit score and other qualifying factors affect what type of loan and interest rate best benefits you.