What credit score do you actually need to buy a house?
The official minimums and what you'll actually find available in the market aren't the same number. Here's the honest breakdown, and what to do if you're not there yet.
Official minimums vs. what lenders actually approve
FHA's own published guidelines allow scores as low as 500 with a larger down payment, and 580 for the standard 3.5%-down option. In practice, many lenders — including wholesale lenders I work with — layer their own stricter requirements ("overlays") on top of FHA's rules, often wanting 620 or higher before they'll actually approve the loan, even though FHA itself would allow lower.
| Loan type | Official floor | What's typically actually available |
|---|---|---|
| FHA | 500 (10% down) / 580 (3.5% down) | 580–620+ in practice, depending on lender |
| Conventional | 620 | 620, with meaningfully better pricing above 680–740 |
| VA | No official VA-set minimum | Most lenders still require 580–620 |
| Home Plus / Home in Five (DPA) | 620 / 640 respectively | Same as stated — these are firmer program requirements, not lender overlays |
Lender overlays vary and change — I'll confirm which of my wholesale lenders can actually approve your specific score before we go further, rather than assume the official minimum applies.
If your score isn't where it needs to be yet
This is one of the most common conversations I have, and it's rarely as slow a fix as people expect. A few of the fastest-moving levers:
- Paying down revolving balances (credit cards) — this is usually the single fastest lever, sometimes moving a score meaningfully within one billing cycle.
- Disputing errors on your credit report — inaccurate late payments or accounts that aren't yours are more common than people assume, and correcting them can help quickly.
- Becoming an authorized user on a family member's older, well-maintained credit card, in some cases.
- Simply waiting out a specific negative item's aging, when nothing else can be done faster.
I map out the fastest realistic path for your specific credit file — usually a matter of months of targeted steps, not years.
Why your score affects more than approval
Above the minimum qualifying score, a higher credit score generally means a better interest rate — not just a "yes" instead of a "no." On a 30-year loan, the difference between a good score and a great one can be worth tens of thousands of dollars over the life of the loan, which is why I look at rate-improvement thresholds, not just the pass/fail line, when I review your file.
Frequently asked questions
What credit score do I need to buy my first home?
Most FHA loans work with scores as low as 580, and conventional loans typically start around 620, though individual lenders can require more. If you're not there yet, I map out the fastest realistic path to qualifying, usually a few months of targeted steps.
Can I still buy a house with a 580 credit score in Phoenix?
Often yes, through FHA financing, though not every lender will approve exactly at that floor. I'll match you to a lender whose overlays fit your actual score rather than assume the official minimum guarantees approval everywhere.