What Credit Score Do I Need to Buy a House?
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By Carroll Harrod · Salt & Soil Realty
If you are asking what credit score you need to buy a house, the honest answer is: it depends on the loan type and the lender.
There is no single universal number for every buyer. The Consumer Financial Protection Bureau (CFPB) explains that borrowers with strong credit generally access better mortgage rates, that some loan types commonly reference thresholds around 620, and that borrowers in the 620–680 range may see fewer choices and higher rates—while government-backed programs can sometimes fit buyers in that band, especially with smaller down payments. (CFPB — Get your money situation in order)
For Jacksonville, NC and coastal North Carolina, the useful question is often: which program fits my score, savings, and timeline? Carroll Harrod with Salt & Soil Realty helps connect that financing picture to a realistic home search—see get pre-approved, first step to buying, lenders to compare, and VA loans on the coast when relevant.
Salt & Soil Realty is a brokerage, not a lender. Loan decisions belong with licensed mortgage professionals.
Quick reference by loan type
| Loan type | What buyers usually hear |
|---|---|
| Conventional | 620 is still a widely cited benchmark—especially for manual underwriting and matrix pricing—but Desktop Underwriter (DU) workflows follow current Fannie Mae Selling Guide rules your lender applies (Fannie Mae — B3-5.1-01) |
| FHA | 580+ often tied to maximum financing; 500–579 generally more restricted; under 500 not eligible for FHA insurance in typical forward purchase scenarios (HUD — ML 10-29 PDF) |
| VA | No VA-set minimum score—you must meet VA eligibility and lender credit standards (VA — Eligibility) |
| USDA Guaranteed | No agency minimum score on the program overview—creditworthiness still must be documented (USDA RD — SFHGLP) |
Conventional loans: why you still hear “620”
The CFPB notes that some loans require at least a 620 score unless you bring a large down payment, and that 620–680 can be a pricing-constrained band for many borrowers. (CFPB — Get your money situation in order)
Fannie Mae’s Selling Guide — General requirements for credit scores (topic B3-5.1-01) is the authoritative place for conventional delivery rules, including how representative scores are determined and how manual vs DU paths may differ. Fannie periodically updates credit-score policy (for example DU workflows)—so treat internet charts as background and your loan officer’s live findings as decisive.
Overlays: banks often add stricter minimums than agency baselines.
FHA loans: HUD’s score / LTV structure
FHA insurance uses minimum decision credit score rules tied to maximum financing. HUD’s Mortgagee Letter 2010-29 summarizes the enduring framework:
- 580 and above: eligible for maximum financing (commonly discussed alongside the 96.5% / 3.5% structure buyers associate with FHA purchases)
- 500–579: limited to 90% LTV (more cash required from the borrower in that scenario)
- Below 500: not eligible for FHA-insured financing under that policy summary
For consumer-friendly context on why FHA exists and how it compares to conventional, see the CFPB’s FHA loans overview. (CFPB)
VA loans: VA vs lender requirements
The VA does not set a minimum credit score for VA-backed loans in the same way program minimums appear in other handbooks—but you must meet VA eligibility and your lender’s credit, income, and occupancy standards. (VA — Eligibility)
So the right question is often: “What does my lender require for a VA loan on my file?”—not a single VA-wide FICO printed on a blog chart.
USDA Guaranteed: no scored minimum on the program page—with a practical “640” conversation
USDA’s Single Family Housing Guaranteed Loan Program overview states there are no credit score requirements, while applicants must still show they can manage debt responsibly. (USDA RD)
In practice, lenders and USDA’s HB-1-3555 technical handbook drive how thin or lower scores are documented. 640 is frequently discussed as a breakpoint for smoother automated / streamlined handling—ask your lender how GUS and manual credit review would treat your profile.
Higher credit usually means better terms—not only “approval”
The CFPB explains that higher scores generally make it easier to qualify and obtain lower interest rates in many market conditions. (CFPB — Ask CFPB on credit scores)
That is why “Can I buy with my score?” and “Is this the cheapest loan I can get today?” are different questions.
Practical score bands to use as goals (not guarantees)
- 580: key FHA planning number when you want the common low-down-payment structure
- 620: conventional conversation starter for many manual / matrix scenarios—confirm DU outcomes separately (Fannie Mae — B3-5.1-01)
- 640: helpful USDA / lender workflow breakpoint in real-world underwriting
- 680+: often a more comfortable pricing band per CFPB’s 620–680 commentary (CFPB)
Jacksonville-area lender conversation: Danielle Wiram (Movement Mortgage)
If you want a local loan officer as a starting point—not an exclusive recommendation—Danielle Wiram lists Branch Manager with Movement Mortgage, NMLS #325223, at 430 Dolphin Dr, Suite 300, Jacksonville, NC 28546, with contact options on her Movement profile. Compare multiple licensed lenders before you commit. (Movement Mortgage)
Same disclosure appears in our pre-approval guide.
If your score is lower than you hoped
The CFPB’s Prepare pathway recommends checking credit, getting finances in order, budgeting, and gathering paperwork before you shop seriously. (CFPB — Prepare)
Often-useful moves:
- Correct credit report errors—the FTC explains how to get free credit reports through the authorized AnnualCreditReport.com channel (FTC)
- Pay down revolving balances where it helps utilization
- Avoid new debt right before applications
- Match loan type to your current profile instead of forcing conventional first
HUD supports housing counseling resources for impartial help comparing options.
The bottom line
- Conventional: 620 remains a widely cited benchmark—verify manual vs DU paths via your lender and current Selling Guide.
- FHA: HUD’s score/LTV tiers (ML 10-29 PDF) drive the 580 / 500–579 / sub-500 framework.
- VA: VA eligibility + lender overlays (VA).
- USDA: No program minimum score on the USDA overview—underwriting still proves creditworthiness (USDA RD).
Contact Salt & Soil Realty to align listings with the budget and letter your lender says you can support.
Frequently Asked Questions
Can I buy a house with a 580 credit score?
Often, yes for FHA-insured financing if you meet HUD program and lender requirements—the 580+ band is tied to maximum financing under HUD’s published LTV framework (HUD — ML 10-29 PDF). Always confirm with a loan officer.
Often, yes—the CFPB discusses 620 as a threshold some loans reference, and Fannie Mae’s guide is where conventional score rules live today (CFPB; Fannie Mae — B3-5.1-01). Approval and pricing still depend on the full file.
No VA-wide minimum FICO is set the same way some other programs publish hard floors—you must satisfy VA eligibility and lender standards (VA).
USDA’s Guaranteed program overview lists no credit score requirement while expecting demonstrated ability to handle debt (USDA RD). Under 640 commonly triggers extra documentation in real lender workflows.
Usually, all else equal—because stronger credit is associated with better rate offers in many markets (CFPB — Ask CFPB).
