Credit & Home Loans: What You Really Need to Qualify

Your credit score decides two things when you buy a home: whether you qualify at all, and what interest rate you pay if you do. But the score a lender pulls is often not the one you see on your phone, and the number is only part of what an underwriter reviews. This guide covers the real credit-score minimums by loan type, why your mortgage score can come back lower than expected, and what to clean up before you apply.

Credit score minimums by loan type

Each loan program sets its own floor, and individual lenders often add stricter requirements on top (called lender overlays). Program minimums as of 2026:

• FHA loan: 580 to put down 3.5%. Scores of 500–579 can technically qualify with 10% down, but most lenders overlay a minimum around 580–620.
• Conventional loan: 620 minimum. Pricing improves in tiers as you climb; the best rates generally start around 740+.
• VA loan: the VA sets no minimum score, but most lenders look for roughly 580–620. See credit repair for VA loan approval.
• USDA loan: no program minimum, but lenders typically want about 640 for streamlined approval.
• Jumbo loan: because the loan exceeds conforming limits, expect stricter standards — commonly 700–740+. See credit repair for conventional and jumbo loans.

Clearing a minimum gets you in the door. The rate you’re offered — and the total interest you pay over the life of the loan — keeps improving as your score rises, which is why it’s worth arriving with the strongest profile you can.

Why your mortgage score looks lower than your app score

The scores you see on Credit Karma or a banking app are usually FICO 8 or VantageScore. Mortgage lenders don’t use those. They pull the older “classic” mortgage FICO models:

• FICO Score 2 on Experian
• FICO Score 5 on Equifax
• FICO Score 4 on TransUnion

A lender pulls all three (a “tri-merge”) and uses your middle score — not the highest, not an average. If two people apply together, the lender generally uses the lower of the two applicants’ middle scores. Because these models are older and stricter, the mortgage number frequently comes back lower than the free score you’ve been watching. Plan around the mortgage score, not the app score.

What lenders check besides the score

Even with a qualifying score, an underwriter can decline a file over the details behind it. They’re looking at:

• Debt-to-income ratio (DTI): your monthly debt payments versus gross income. Many programs want the total housing-plus-debt figure under about 43%, though automated underwriting can approve higher with strong compensating factors.
• Recent late payments: a 30-day late in the last 12 months carries far more weight than one from years ago.
• Collections, charge-offs, and public records: these may need to be paid or explained before approval.
• Recent credit activity: new accounts and hard inquiries right before applying make lenders nervous.
• Credit age and mix: a thin file with little history can be as much of an obstacle as a low score.

What to fix before you apply

• Pull all three reports and check them for errors. You can get them free at AnnualCreditReport.com. Inaccurate late payments, accounts that aren’t yours, or already-paid collections still showing a balance can each drag your mortgage score down. Disputing genuinely inaccurate items with the bureaus is your right under the FCRA — and it’s the work we do at Online Credit Repair.
• Lower your utilization before the statement cuts. Card balances usually report on the statement date, not the due date. Paying revolving balances down before the statement closes is one of the faster ways to present a stronger number.
• Don’t open or close accounts. New accounts add inquiries and lower your average account age; closing an old card can raise utilization and shorten history.
• Keep money movements clean. Underwriters source your down payment. Large, unexplained deposits in the months before applying create paperwork headaches — keep your accounts steady.

Important: no one can lawfully remove accurate negative information, and legitimate credit repair only disputes items that are inaccurate, unverifiable, or incomplete. Be wary of anyone who promises to erase a real late payment or guarantee a specific score.

How early should you start?

If your reports are already clean and your score qualifies, you may be ready now. If you have inaccurate items to dispute or utilization to bring down, give yourself three to six months — disputes run on the bureaus’ investigation timelines (generally up to 30–45 days each), and paying down balances takes a billing cycle or two to show up. Starting before you fall in love with a house is always better than scrambling once you’re under contract.

For the full step-by-step timeline, see our Credit Repair Before Buying a House (2026 Playbook) and complete home-buyer guide.

Frequently asked questions

What credit score do I need to buy a house?

The practical floor is 580 for an FHA loan with 3.5% down or 620 for a conventional loan. VA and USDA loans have no program minimum, but most lenders want roughly 580–640. Higher scores unlock better interest rates.

Why is my mortgage score lower than the score on my app?

Lenders use older “classic” FICO models (FICO 2, 4, and 5) rather than the FICO 8 or VantageScore shown on most free apps, and they use your middle of three scores. Those models are stricter, so the mortgage number is often lower.

Can I still buy a home with collections or late payments?

Often yes, depending on the loan program, how recent the items are, and your overall profile. Recent lates and unresolved collections are the biggest obstacles; inaccurate ones can be disputed. Accurate items generally can’t be removed but can be offset by an otherwise strong file.