While credit score requirements vary based on loan type, lenders generally require a credit score of at least 620 to buy a house with a conventional mortgage.
To buy a house, you may need a credit score of at least 500, but it will depend on the type of mortgage loan you’re applying for and the lender. You can get a mortgage even if you have bad credit, but to get the best terms, you usually need good or excellent credit.
Read on to learn what credit score youll need to buy a house and how to improve your credit leading up to a mortgage application.
When your credit score is 757, it means you have excellent credit, which means you should be able to get a mortgage to buy a house. But there are a few important things to remember.
What Credit Score Is Needed to Buy a House?
Most of the time, you need a credit score of at least 620 to get a conventional mortgage with good rates. However, requirements vary depending on the mortgage program .
- Conventional loans – 620 minimum credit score required in most cases. 760+ recommended for the very best rates.
- FHA loans – 500 minimum credit score if you make a 10% down payment. 580 minimum with 3.5% down.
- VA loans – No official minimum but most lenders require 620+ scores.
- USDA loans – No defined minimum but scores of 580-620 typically required.
- Jumbo loans – Due to higher loan amounts, you’ll generally need at least 700.
While the minimum can be as low as 500 for certain government-backed mortgages, your interest rates improve significantly once you reach the mid-700s.
How Does a 757 Credit Score Fare for Mortgage Rates?
If your credit score is 757, the FICO scoring model says it is “very good.” This means that most lenders should be able to offer you good interest rates.
Take a look at these average 30-year fixed mortgage rates broken down by credit score range as of July 2024.
- 760-850 – 6.237% APR
- 700-759 – 6.459% APR
- 680-699 – 6.636% APR
- 660-679 – 6.85% APR
- 640-659 – 7.28% APR
- 620-639 – 7.826% APR
With a score of 757, you’d likely fall into the 700-759 range above, qualifying you for an average rate of 6459% right now That’s over 1.3 percentage points lower than if you had a bottom-tier score of 620-639.
This difference can save you tens of thousands of dollars in interest charges over the life of your mortgage.
Other Factors Lenders Consider With Mortgage Applications
While your credit score plays a significant role, lenders will look at other criteria when reviewing your mortgage application, including:
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Down payment amount – The more you can put down, the lower your rate may be. 20% down avoids private mortgage insurance (PMI).
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Debt-to-income ratio – Your total monthly debt divided by gross income. Most want this below 43%.
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Credit history – Foreclosures, bankruptcies, and other major issues can outweigh your high credit score.
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Work history – Stable income sources and longer job tenure may help your case.
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Assets and reserves – Extra assets and cash reserves show financial stability.
A higher credit score can help offset other application weaknesses, but underwriters still examine your full financial picture.
Can I Get a Mortgage With a Score Lower Than 757?
Absolutely. Here are some tips for getting approved if your credit score is below 757:
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Shop for lenders willing to approve lower scores. Online lenders tend to be more flexible than banks.
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Apply for an FHA loan. They only require 500+ credit scores.
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Make a larger down payment if possible. This offsets the higher risk of a lower score.
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Reduce other monthly debts to improve your debt-to-income ratio. Pay down credit cards and other balances.
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Add a co-signer with better credit, but make sure they recognize the obligation.
While mortgage lenders have become more flexible with credit requirements in recent years, you’ll always pay a price for having less-than-perfect credit. Make it a priority to improve your score before applying if you can.
How to Improve Your Credit Score Before Buying a House
If you have time before you need to buy a house, take steps to boost your credit score even more. This can help you land better mortgage rates and terms. Here are some tips:
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Review your credit reports and dispute any errors you find. Mistakes can drag down your score.
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Pay all bills on time each month. Payment history is the biggest factor in your credit score.
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Pay down credit card and other revolving balances. High balances hurt your credit utilization ratio.
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Limit new credit applications in the months preceding your mortgage application. Too many can be seen as riskier.
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Set up automatic bill payments so you never miss deadlines. Even one late payment can damage your score.
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Monitor your credit score regularly so you can catch issues before they grow.
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Maintain low credit card balances and avoid unnecessary debt.
Patience and diligently building your credit history over time is rewarded when you go to buy a home. Don’t wait until the last minute to check on your credit score status.
The Takeaway: 757 Credit Score Is Great for Mortgage Qualification
A 757 credit score puts you well within the “good to excellent” credit range needed to qualify for a competitive mortgage rate. While it’s not a guarantee, this score means you should have a high approval probability when applying for a home loan.
Just keep in mind lenders look at all aspects of your financial profile, not just your credit score. But maintaining scores of 757 and higher will put you in a strong position as a mortgage applicant. Monitor your credit, pay bills on time, and limit new credit applications as you get ready to buy your dream home.
Conventional Loans Minimum Credit Score: 620
Conventional loans typically require a minimum credit score of 620, though some may require a score of 660 or higher. These loans aren’t backed by the government, but they do meet the requirements set by Fannie Mae and Freddie Mac, two government-backed companies. Theyre by far the most commonly used mortgage loans.
Can You Get a Mortgage With a Bad Credit Score?
Its possible to get approved for a mortgage with poor credit. You can raise your interest rate, but that doesn’t mean you should. Over the life of a mortgage loan, even a small increase can cost you tens of thousands of dollars. If youre not in a rush and can take time to improve your credit before applying for a mortgage, it could be well worth it (more on this below).
If you want to buy a house soon but have bad credit, here are some things you can do to improve your chances of getting a good interest rate:
- Consider an FHA loan. Some lenders will let you get approved with as little as a 500 score if you have at least 10% down.
- Minimize other risks. Making a bigger down payment, paying off other debts, or lowering your credit utilization rate on your credit cards are some things you can do to lower your DTI.
- Shop around. Get preapproved with a few different lenders to get an idea of what’s out there for you based on your credit. You might even want to work with a mortgage broker; they might be able to help you find a special loan program.
- Get a cosigner. You could ask someone with great or very good credit to cosign your application with you. Just make sure you talk about what will happen if you cosign a mortgage loan before you do it.
Theres no guarantee that these actions will help you qualify for a mortgage loan with good terms, but they can improve your odds.
Learn more: How to Get a Home Loan With Bad Credit
Minimum Credit Score to Buy a House | Retail Mortgage
FAQ
Is a 757 credit score good?
Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted. A 757 credit score is often considered very good — or even excellent.
Do you need a credit score to buy a house?
Before giving you a mortgage loan, one of the main things lenders look at is your credit score. Different types of loans have different minimum credit score requirements. Typically, the higher your credit score is, the lower an interest rate you will qualify for. Strictly speaking, you don’t need a credit score to buy a house.
What is the average utilization rate for a 757 credit score?
Among consumers with FICO ® credit scores of 757, the average utilization rate is 31. 8%. The best way to determine how to improve your credit score is to check your FICO ® Score. Based on certain information in your credit report, you will also get information about how you can raise your score.
What is a good credit score to buy a house?
A favorable credit score to buy a house is typically in the high 600s and 700s. Anything higher than that is considered “exceptional”, and helps borrowers get the very best mortgage rates. Certain loan types even allow you to buy a house with a credit score as low as 500.
Can you buy a house with a low credit score?
You might apply for the loan with only the applicant whose credit score is good, though, if one of them has a low score. If you omit one applicant’s credit score, you must also omit their income from the application. How much credit do I need to buy a house? You need at least 720 points to buy a house.
Can you buy a house with a 580 credit score?
Lenders may not be able to re-sell loans given to borrowers with credit scores less than 620, possibly as low as 580. So even though FHA requirements will allow 500 to 580 as a minimum credit score, a minimum range of 580 to 620 is more realistic for prospective FHA borrowers. The minimum credit score to buy a house with a VA loan is 580 to 620.
Is 757 a good credit score to buy a house?
Your credit score (commonly called a FICO ® Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.
How big of a loan can I get with a 750 credit score?
What can a 757 credit score get you?
| Type of Credit | Do You Qualify? |
|---|---|
| Credit Card | YES |
| Personal Loan | YES |
| Auto Loan | YES |
| Home Loan | YES |
What is the minimum credit score to buy a house?
You generally need a credit score of at least 620 to qualify for a conventional mortgage, though every lender is different. It’s possible to qualify for an FHA loan, which is backed by the federal government, with a credit score as low as 500.