You Need a 700 Credit Score to Buy a House

by Tony Tiller

Myth #7 of 30

Ask a group of renters what credit score you need to buy a house, and you'll hear "700" over and over. It sounds like a rule. It isn't. A credit score is a three-digit number, usually between 300 and 850, that tells a lender how likely you are to pay back what you borrow. A lender is the bank or company that gives you a mortgage, which is the loan you use to buy a home.

So where does 700 come from? The New York Fed found the average first-time buyer had a credit score of 734 in 2024. That's an average, not a minimum. Plenty of people buy with scores under 700 every year, and the loan rules spell it out.

What credit score do you actually need to buy a house?

For most home loans, the real floor is somewhere between 580 and 640, not 700. It depends on the type of loan:

FHA loan. This is a loan backed by the Federal Housing Administration, a government agency. A score of 580 or higher lets you put down 3.5%. Scores from 500 to 579 can still qualify with 10% down.
Conventional loan. This is a regular loan that isn't backed by the government. For years the cutoff was 620. In November 2025, Fannie Mae dropped that hard minimum from Desktop Underwriter, the computer system lenders use to approve its loans. Now the system looks at your whole picture instead of one number. Most lenders still look for about 620, though.
VA loan. This is a loan for veterans and service members. The VA doesn't set a minimum score at all. Most VA lenders look for about 620.
USDA loan. This is a no-money-down loan for homes in eligible rural and small-town areas. USDA doesn't publish a minimum either, but many lenders want about 640.

Each lender can add its own rules on top of these. That's why one lender might say no at 600 while another says yes.

Does a higher credit score still matter?

Yes. A higher score usually gets you a lower interest rate and a cheaper monthly payment. The interest rate is what the lender charges you to borrow, shown as a percentage. On a 30-year loan, even a small difference in rate can add up to thousands of dollars.

So 700 isn't the line between "yes" and "no." It's closer to the line between a good deal and a better deal. To be honest with you, the New York Fed's numbers show very few mortgages lately go to people under 620. That doesn't mean it can't happen. It means a lower score needs a lender who really knows the programs, and sometimes a little more time.

What credit score do you need for down payment help in Missouri?

You need at least a 640 for down payment help from the Missouri Housing Development Commission, or MHDC. MHDC is the state agency that runs Missouri's first-time buyer programs. In the St. Louis area, which includes St. Charles County, its 2026 income limits are $113,500 for households of 1 or 2 people and $130,525 for 3 or more. It can cover up to 4% of your loan. We walked through how it works in Myth #4.

So if you're sitting at 610 or 620, getting to 640 could open the door to help with your down payment and closing costs. For a lot of buyers, that's the best reason to work on their score before they buy.

How long does it take to raise your credit score?

It can take a few weeks to a few months, depending on what's pulling your score down. These moves tend to help the most:

Pay down credit card balances. How much of your card limits you're using is a big part of your score. Lower balances can help fast.
Pay every bill on time from now on. Late payments hurt the most. Every on-time month helps rebuild.
Fix mistakes on your report. Errors happen. You can pull your reports for free and dispute anything that's wrong. Myth #8 covers how to check without hurting your score.
Don't open new credit cards or loans right before you buy. New accounts can drop your score for a while.

A good lender can look at your credit report and tell you which moves would help you most. Some can even show you how much paying off one certain card might raise your score.

Should you wait until you hit 700 to start?

No. Start talking to a lender now, even if you're not ready to buy. If you're at 650, you may already qualify for FHA, a conventional loan or MHDC help. Waiting for a number you don't need could cost you another year or more of rent. If you're at 560, a lender can map out a plan to get you to 580 or 640, so you know exactly what you're working toward.

Here in St. Charles, Warren, Lincoln and St. Louis counties, people with all kinds of scores buy homes. The ones who get there fastest are the ones who stop guessing and find out where they really stand.