You can buy a house with a credit score as low as 580 using an FHA loan with 3.5% down, or 620 for a conventional loan. But your score does more than get you approved. A lower score raises your interest rate, and the gap between top-tier and 620 credit can cost hundreds of dollars a month on the same loan.
As an accountant who bought a first home without a pristine financial profile, here is the short version: the minimums are lower than most people assume, but the price of a low score is real and worth closing.
The minimums, by loan type
| Loan type | Minimum score | Note |
|---|---|---|
| FHA | 580 | 3.5% down (500 with 10% down) |
| Conventional | 620 | Many lenders want 640+ in practice |
| VA | No set minimum | Lenders usually want 580 to 620 |
| USDA | No set minimum | Lenders usually want about 640 |
The door opens lower than the internet lore suggests. An FHA loan at 580 with 3.5% down is the most common path for first-time buyers, and it is the exact route I used to buy a small multifamily, covered in house hacking with an FHA loan. State and local help can stack on top, which I break down in first-time home buyer programs explained.
Your score sets your rate, not just approval
Getting approved is only half the story. The same loan costs very different amounts depending on your score band. Moving from the 620 to 639 range up into the 700s can save a few hundred dollars a month, which is often worth delaying a purchase by a few months to fix.
If your score is not there yet
A credit score is a lever you can actually move, usually faster than you can save a bigger down payment. Get to 580, use the FHA door, and let a tenant help carry the payment once you are in. To see how much cash a purchase really takes, run a place through the house hacking calculator and read how much money you need to buy a duplex.
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Sources
- U.S. Department of Housing and Urban Development, FHA Handbook 4000.1 (minimum credit score and down payment)
- Fannie Mae and Freddie Mac conventional loan eligibility (620 minimum)
- U.S. Department of Veterans Affairs and USDA loan guidelines (no set minimum score)
- Opendoor, credit score to buy a house (2026), rate-tier and monthly-cost estimates