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20 Jan 2026 • 22:42
8 min read
What credit score do you need to buy a house in 2026? If you’re wondering whether your number will stop you from owning a home, you’re not alone. I’ll walk you through the real thresholds lenders use today, how government programs differ from conventional loans, and practical steps to improve your odds fast.
First, a quick reality check: a credit score is one of several inputs lenders use. It’s not the whole story—income, down payment, debt-to-income (DTI) ratio, savings, and recent payment history matter too.
Why the score matters: lenders use credit scores to price risk and decide whether to approve your loan. Higher scores typically mean lower interest rates and fewer hurdles. Lower scores increase scrutiny and can require larger down payments or co-signers.
In 2024–25 regulators and the major mortgage buyers (Fannie Mae and Freddie Mac) moved the market toward newer scoring models like VantageScore 4.0 and updated FICO variants. That shift, and subsequent changes in late 2025, mean the industry is more flexible on strict cutoffs than it used to be. Still, lenders set their own rules (called "overlays") and investor requirements vary.
Different loan programs have different typical thresholds. Below I summarize the most common paths to homeownership and what credit score ranges lenders typically look for.
Conventional (Fannie Mae / Freddie Mac) loans: Historically, many conventional loans required a 620 minimum. As of November 16, 2025, Fannie Mae removed a hard minimum in its DU automated system, giving lenders more discretion. That doesn’t mean lenders won’t require 620+ in practice; many still do. For jumbo loans, expect 700+ requirements and higher reserves. Source: HousingWire coverage of Fannie Mae’s update.
FHA loans (Federal Housing Administration): FHA program rules still allow borrowers with scores of 580+ to qualify for the standard 3.5% down payment and may permit scores between 500–599 with a 10% down payment. Lenders, however, often require higher scores to reduce risk. Source: FHA guidance on credit scores.
VA loans (Veterans Affairs): The VA does not set a minimum credit score; private lenders do. Many lenders prefer 620+, but VA-backed loans can be approved with lower scores if compensating factors exist. Source: Veterans United on VA credit benchmarks.
USDA loans (rural): USDA program rules do not specify a strict minimum score, but lenders commonly require scores in the mid- to high-600s or sometimes 580-620 depending on the lender and the overall file strength.
Bottom line: There is no single, universal minimum in 2026. Government programs are still more forgiving than many conventional lenders, and the GSEs’ move away from rigid cutoffs gives lenders room to approve lower scores when other parts of the file are strong.
Several regulatory and industry updates between 2024 and late 2025 reshaped how scores are used:
VantageScore 4.0 accepted by the FHFA for use on loans sold to Fannie and Freddie, promoting competition with FICO-based models and potentially changing which consumers show higher or lower scores. See FHFA announcement.
Fannie Mae removed a strict 620 minimum for loans processed through its DU system (effective November 2025). That lets automated underwriting consider more factors than just a single cutoff. Coverage example: HousingWire.
Lenders still set overlays: even after these changes, banks and mortgage companies often keep their own minima to manage risk, so you’ll see variation in practice.
Key stat: Fannie Mae’s removal of a 620 floor (effective November 16, 2025) gives lenders more flexibility, but many still use 620 as a practical benchmark.
Here are practical categories and what you can expect when you apply for a purchase mortgage in 2026.
760+ (Excellent): Likely the best rates and access to most loan products including low-rate conventionals and jumbo financing.
700-759 (Very good): Strong offers, competitive rates; minimal documentation friction.
660-699 (Good): Qualify for most conventional loans; slightly higher rates. FHA and VA still welcome borrowers here with good terms.
620-659 (Fair): Conventional lenders may require compensating factors; FHA or VA may be better options depending on down payment and history.
580-619 (Below average): FHA is often the most realistic path, with possible higher down payment if under 580. Some lenders may approve conventional loans if other factors are strong and Fannie Mae/Freddie flexibility applies.
<500-579 (Poor): FHA allows 500-579 with 10% down; VA and USDA may still be possible with strong compensating factors and manual underwriting. Expect higher rates and limited product choices.
Score alone won’t win or lose your mortgage. Underwriters look at the whole file:
Payment history: recent 12-month behavior is weighted heavily.
DTI ratio: lenders prefer lower debt relative to income; VA uses "residual income" too.
Down payment & reserves: larger down payments and cash reserves can offset a lower score.
Employment stability: steady employment and documented income reduce perceived risk.
Manual underwriting potential: FHA and VA allow manual underwriting in many cases, which considers circumstances rather than automated thresholds.
If your score is near a typical cutoff (like 620) or below it, here’s a practical action plan you can start today.
Pull and review your credit reports: get your free reports from AnnualCreditReport.com and fix errors. Dispute any inaccurate late payments or duplicate debts.
Pay down high-interest revolving debt: reducing credit-card balances improves utilization, which often causes immediate score gains.
Avoid new credit inquiries: new accounts can lower your average account age and temporarily dip scores.
Document compensating factors: build a file that shows stable income, savings, and a clear explanation for any past derogatory items (medical bills, temporary job loss).
Consider a co-signer or larger down payment: both can make an otherwise-marginal profile acceptable to lenders.
Shop multiple lenders: overlay policies vary; one lender’s 620 minimum could be another’s 580 or manual-underwrite opportunity.
Match your credit profile to the loan that gives you the best path to approval and the lowest long-term cost.
If you have 580+ but under 620: FHA usually offers the path with a 3.5% down payment. Shop FHA-approved lenders for best service and overlays.
If you’re a veteran: check VA loans thoroughly; lenders differ, and manual underwriting can help borrowers with past credit issues. Veterans guidance: Veterans United credit benchmarks.
If you’re income-qualified in a rural area: USDA loans may allow low/zero down payment options even with imperfect credit, subject to lender requirements and income limits.
If your score is 620+: conventional loans (and the most competitive rates) are usually within reach, but compare offers because lender overlays still matter.
Interest rates often move in tiers by credit score. A difference of 40-80 points can translate to meaningful monthly payment and lifetime interest differences. Exact pricing changes daily and depend on rates, loan size, and market conditions, so get personalized rate quotes from multiple lenders rather than relying solely on published ranges.
Q: Can I get a mortgage with a 600 score in 2026?
A: Yes, often via FHA (with higher down payment flexibility) or VA/USDA in some cases. Some conventional lenders might also approve if compensating factors are strong, especially after Fannie Mae’s 2025 policy change. Always shop lenders.
Q: Does Fannie Mae’s removal of the 620 floor mean any score will work?
A: No. The change gives automated underwriting more discretion, but lenders and investors still expect responsible credit behavior. Many lenders maintain practical minimums. See Fannie Mae’s change summary reported by HousingWire.
Q: Should I wait to buy until my score is higher?
A: That depends on market timing, your housing needs, and how much your score can realistically improve. Sometimes fixing a few issues and boosting utilization can improve scores within 30-90 days and materially lower your monthly payment. I recommend getting prequalified now to see realistic rate quotes, then decide whether a short delay to improve the file is worthwhile.
Order credit reports and correct errors.
Calculate your DTI and target a DTI under 43% (many lenders prefer lower).
Save for a larger down payment to lower your odds of denial or reduce mortgage insurance.
Get prequalified with at least three different lenders to compare overlays and rates.
Ask lenders whether they use VantageScore 4.0 or FICO, and whether manual underwriting is an option.
There’s no single magic number in 2026. That said, aim for 620+ to unlock conventional pricing and wider lender choice. If you’re below 620, don’t panic: FHA, VA, and USDA programs, plus lender discretion (especially after the Fannie/Freddie updates), can create real paths to approval. Take targeted steps to reduce balances, fix errors, and document compensating factors to improve your chances quickly.
Practical takeaway: if you can move your score into the mid-600s and lower your DTI while saving a modest down payment, you’ll dramatically increase the number of lenders and loan products available to you.
