The credit score you need for a home loan varies on the type of loan you apply for. Some loans specify a credit score, while others don’t. Some require a percentage of the mortgage as a down payment while others don’t. Each lender and type of loan is different.
For example, Veterans Affairs loans (specifically for veterans, active-duty service members, and surviving spouses) typically do not require a down payment but may have a minimum credit score requirement. A United States Department of Agriculture (USDA) loan does not specify a credit score, but lenders usually seek a credit score of at least 640. These loans are applicable only for properties purchased in designated rural areas. Federal Housing Administration (FHA) loans need at least a 580 FICO Score with at least a 3.5% down payment (which amounts to $10,500 on a $300,000 home). Conventional loans require a minimum FICO® Score of 620 along with a 3% down payment (which amounts to $9,000 on a $300,000 home).
Consider all your available options, build your credit score, and save up for a down payment before you buy a house so that you can get the best out of what will probably be the largest investment in your credit history.
FAQs
The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.
What credit score is needed to buy a house? ›
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
How much do you need for a 300K house? ›
Having a down payment of at least 20% increases your chances of qualifying for a $300K home. To meet a 20% down payment on a 300K home, you should have at least $60,000 saved. Remember, this total is separate from your closing costs. On average, expect to pay 3% to 6% of your loan amount in closing costs.
What credit score do I need to buy a 200 000 house? ›
Minimum credit score to buy a house by loan type
A conventional loan is a mortgage that's not insured by a government agency. Most conventional loans are backed by mortgage companies Fannie Mae and Freddie Mac. Fannie Mae says that conventional loans typically require a minimum credit score of 620.
How much do you need to make for a 300K mortgage? ›
How much do I need to make to buy a $300K house? To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.
What credit score do I need to buy a 350k house? ›
Most mortgages, including conventional loans, require a credit score of 620 or higher. It's possible to get an FHA loan with a credit score as low as 500, but many lenders require higher scores.
What credit score do I need to buy a house with no money down? ›
A USDA loan is insured by the U.S. Department of Agriculture and is meant for low- to moderate-income home buyers. The USDA doesn't require a down payment and doesn't set a minimum credit score requirement, though most lenders will want borrowers to have at least a 640.
What credit score is needed for a $250000 house? ›
Conventional loan | Credit score: 620
To qualify for a conventional loan, you'll need a credit score of at least 620, though some lenders may choose to approve conventional mortgage applications only for borrowers with credit scores of 680 and up.
Do you need 2 credit scores to buy a house? ›
How Lenders Use Two Credit Scores. Lenders use both partners' credit scores, but a common myth is that they take the scores and average them, which isn't the case. Instead, they do this: Each applicant has three credit scores (one from each major credit bureau), and the lender looks at all of them.
What is the 20% down payment on a $300 000 house? ›
A 20% down payment on a $300,000 mortgage is $60,000. The $60,000 down payment is what most lenders look for especially commercial lenders, because it helps mitigate the risk of default.
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
What type of house can I get with a 700 credit score? ›
Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.
How much down payment for a 350K house? ›
The median downpayment on a home is 13%, but if a buyer wants to avoid fees, including private mortgage insurance, they may have to put at least 20% down. If a buyer puts 20% down and takes out a $350K mortgage, they're likely putting down around $87,500.
