What is a good credit score to get a good mortgage rate?

A credit score of 740 or above qualifies you for the best mortgage rates from most lenders. The difference between a 640 and 740 score on a $300,000 mortgage can mean paying $100-150 more per month and $40,000-60,000 more in total interest over 30 years.

Finance May 27, 2026 8 min read

What Credit Score Do You Need to Buy a House in 2025?

Q: What credit score do you need to buy a house in 2025?

The minimum credit score to buy a house depends on the loan type: Conventional loans require 620+, FHA loans require 580+ (or 500 with 10% down), VA loans have no official minimum but lenders prefer 620+, and USDA loans typically require 640+. For the best mortgage rates, aim for 740 or higher.

Q: Can I buy a house with a 580 credit score?

Yes — with an FHA loan, you can buy a house with a 580 credit score and 3.5% down payment. With a score between 500-579, FHA requires 10% down. Keep in mind FHA loans require mortgage insurance premiums (MIP) for the life of the loan in most cases.

Q: How much does credit score affect mortgage rate?

Significantly. On a $300,000 30-year mortgage, the difference between a 620 and 760 credit score can be 1.5-2% in interest rate, translating to $250-350 more per month and over $80,000 more in total interest paid.

The minimum credit score to buy a house is 500 — but that doesn't mean you should. Here's the exact score you need for each loan type, how your score affects your monthly payment, and what to do if you're not there yet.

🏠 See How Your Credit Score Affects Your Payment

Use our mortgage calculator to see exactly how different interest rates (driven by your credit score) change your monthly payment and total cost.

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Minimum Credit Score by Loan Type — 2025

Loan Type	Minimum Score	Down Payment	Best For
Conventional	620	3–20%	Good credit buyers, avoid PMI with 20%
FHA Loan	580 (3.5% down) 500 (10% down)	3.5–10%	First-time buyers, lower credit scores
VA Loan	No official min (lenders prefer 620+)	0%	Veterans, active military, surviving spouses
USDA Loan	640	0%	Rural/suburban buyers, income limits apply
Jumbo Loan	700–720	10–20%	High-cost areas, loans above $766,550

How Much Does Credit Score Actually Affect Your Mortgage?

This is where it gets real. Here's what different credit scores mean for a $350,000 home purchase with 20% down ($280,000 loan) on a 30-year mortgage:

Credit Score	Est. Rate	Monthly Payment	Total Interest (30yr)	vs. 760 score
760–850	6.4%	$1,748	$349,300	—
700–759	6.6%	$1,790	$364,400	+$42/mo, +$15,100 total
680–699	6.8%	$1,827	$377,700	+$79/mo, +$28,400 total
660–679	7.1%	$1,882	$397,500	+$134/mo, +$48,200 total
640–659	7.5%	$1,958	$424,900	+$210/mo, +$75,600 total
620–639	8.0%	$2,054	$459,500	+$306/mo, +$110,200 total

A 620 vs 760 score on a $280,000 mortgage costs you $306 more every single month — and over $110,000 more over the life of the loan. That's the real cost of a low credit score.

What Is a Good Credit Score for a Mortgage?

740+ — Excellent: Best rates from all lenders. This is the target.
700–739 — Very Good: Near-best rates, easy approval.
680–699 — Good: Good rates, all loan types available.
660–679 — Fair: Higher rates, still conventional eligible.
620–659 — Below Average: Minimum conventional, consider FHA.
580–619 — Poor: FHA only with 3.5% down.
Below 580 — Very Poor: FHA with 10% down, or wait and rebuild.

How to Improve Your Credit Score Before Buying

If you're 6–12 months from buying, these moves have the biggest impact:

Fastest Ways to Raise Your Score

1Pay down credit card balances below 30% utilization. This is the fastest win — utilization is 30% of your score. Below 10% is ideal.
2Dispute errors on your credit report. Get your free report at AnnualCreditReport.com. One in five Americans has an error. Dispute any inaccuracies with the bureaus.
3Never miss a payment. Payment history is 35% of your score. Set up autopay for at least the minimum on every account.
4Don't close old credit cards. Length of credit history matters — keep old accounts open even if you don't use them.
5Avoid opening new credit accounts. Each hard inquiry drops your score 5–10 points. Don't open new cards or loans in the 6 months before applying for a mortgage.
6Become an authorized user. Ask a family member with excellent credit to add you as an authorized user on their oldest card. Their history can boost your score.

Should You Wait to Buy or Buy Now with Lower Credit?

This depends on your local market and how much you can improve your score. The math:

If you can raise your score from 640 to 720 in 6 months, you'd save $150+/month for 30 years — worth waiting
If home prices are rising 5–8% annually in your area, waiting 6 months could cost more than the rate difference
FHA loans allow refinancing later — you can buy now with FHA, then refinance to conventional once your score improves

There's no universal answer. Run the numbers with our mortgage calculator using different rate scenarios to see what makes sense for your situation.

📊 Calculate Your Mortgage Payment at Any Rate

Plug in your home price and try different interest rates to see exactly how much your credit score will cost or save you over 30 years.