What Credit Score Do I Need to Buy a House?

"What credit score do I need to buy a house" is one of the first questions people ask before they even think about touring homes, and it's a good one to ask early. Darya Ghomeshi, a Compass agent in Sacramento and El Dorado Hills who began her career in mortgage lending, breaks down what actually matters.

There's No Single Magic Number

I get asked this constantly, and the honest answer is that it depends on the loan type. Conventional loans typically want to see a credit score of 620 or higher, though better rates usually kick in above 740. FHA loans can allow scores as low as 580 with a smaller down payment, and sometimes lower with a larger down payment. I always tell clients their score is one piece of the puzzle, not the whole picture.

Your Score Affects More Than Approval

Even if you qualify with a lower score, it can mean a higher interest rate, which adds up significantly over the life of a 30 year loan. I've seen buyers save real money over time just by spending a few months improving their score before applying. It's one of the first conversations I have with buyers who aren't in a rush.

What Actually Moves Your Score

From my time in lending, the things that tend to move the needle fastest are:

• Paying down credit card balances, especially getting utilization under 30 percent
• Making every payment on time, even small ones
• Not opening new credit accounts or making large purchases right before applying
• Correcting any errors on your credit report

Should You Wait to Improve Your Score Before Buying?

Sometimes, yes. If your score is close to a threshold that would meaningfully change your rate, I might suggest waiting three to six months and working with a lender on a credit improvement plan. Other times, the market conditions or a specific home make moving forward now the better call. I walk through this trade-off individually with every buyer, because it's rarely a one size fits all answer.

Frequently Asked Questions

What is the minimum credit score to buy a house? It depends on the loan type. Conventional loans generally require 620 or higher, while FHA loans can go as low as 580, or lower in some cases with additional down payment.

Does my credit score affect my interest rate? Yes, significantly. Higher credit scores generally qualify for lower interest rates, which can save you a substantial amount over the life of the loan.

How can I improve my credit score before buying a house? Pay down credit card balances, make all payments on time, avoid opening new credit accounts, and check your credit report for errors. I connect clients with lenders who can build a specific improvement plan if needed.

Should I talk to a lender before or after I start house hunting? Before. I always recommend getting pre-approved first so you know exactly where you stand. Reach out through darya916.com and I can connect you with a trusted local lender.

Darya Ghomeshi | CA DRE# 01935449 | Compass California II, Inc. | CA DRE# 01527235. This content is educational and not a substitute for advice from a licensed mortgage lender.