For most conventional mortgages, lenders want you to have a credit score of at least 620. However, the minimum score varies by loan type.
The minimum credit score needed to buy a house can range from 500 to 700, but will ultimately depend on the type of mortgage loan youre applying for and your lender. While its possible to get a mortgage with bad credit, you typically need good or exceptional credit to qualify for the best terms.
Read on to find out what credit score you need to buy a house and how to raise it before you apply for a mortgage.
Buying a home is an exciting milestone in life, but it also requires careful planning and preparation. One of the key factors lenders consider when approving a mortgage is the borrower’s credit score. So what credit score do you need to buy a house? Is 645 a good credit score for getting approved for a mortgage? Let’s take a closer look.
What Credit Score is Considered Good for Buying a House?
Most conventional mortgages require a minimum credit score of 620 to qualify. However, the higher your score the better your chances of getting approved and securing favorable loan terms. Here’s a quick overview of credit score tiers
- 800-850: Excellent
- 740-799: Very good
- 670-739: Good
- 580-669: Fair
- Below 580: Poor
In this case, a credit score of 645 is in the fair range and meets the requirements for most mortgages. But people whose credit scores are between good and excellent (670) will have more choices and may be able to get the best interest rates.
Mortgage Credit Score Requirements by Loan Type
While 620 is the typical minimum for conventional loans, requirements vary for different mortgage programs:
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Conventional 620 minimum
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FHA loans: 500 minimum (with 10% down), 580 minimum (with 3.5% down)
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VA loans: No set minimum but most lenders require 580+
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USDA loans: No set minimum but 640+ recommended
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Jumbo loans: 700+ required
If your credit score is 645, you might be able to get an FHA or conventional loan, but not a VA, USDA, or jumbo loan. Lenders can, of course, set their own minimums for loans that are higher than these.
Pros and Cons of a 645 Credit Score When Buying a House
A credit score of 645 has both advantages and disadvantages for potential homebuyers:
Pros:
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Meets minimum for most conventional mortgages
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Qualifies for FHA loans with 3.5% down payment
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Shows you can handle credit responsibly
Cons:
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Lower scores typically mean higher interest rates
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May need to make larger down payment
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Won’t get best mortgage rates
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VA, USDA, jumbo loans likely out of reach
There is still room for improvement, even though 645 is a good score. It can really help to raise your score before you apply for a mortgage.
How to Improve Your Credit Score When Buying a House
If your credit score is on the lower end, take steps to boost it before applying for a mortgage. Here are some tips:
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Pay all bills on time – set up autopay if needed
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Pay down revolving debt like credit cards
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Limit new credit inquiries
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Correct any errors on your credit reports
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Monitor your credit with free reports
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Become an authorized user on someone’s account
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Allow accounts to age to increase length of credit history
With diligence and patience, you may be able to improve your credit score significantly within 6-12 months.
What Interest Rate Can You Get with a 645 Credit Score?
The interest rate you can get on a loan depends on your credit score, income, assets, debts, and down payment amount, among other things. But here are some typical 30-year fixed mortgage rates for people with different credit scores:
- 800-850: 2.25% – 3.125%
- 740-799: 2.625% – 3.375%
- 720-739: 2.75% – 3.5%
- 700-719: 2.875% – 3.75%
- 680-699: 3.125% – 4.125%
- 660-679: 3.25% – 4.25%
- 640-659: 3.625% – 4.625%
- 620-639: 4.125% – 5.125%
- 580-619: 4.625% – 5.625%
With a 645 credit score, you can expect to pay somewhere around 4.25% – 5.25% for a 30-year fixed-rate mortgage. Of course, an individual lender will give you a customized rate quote based on your full credit profile and finances.
Alternatives if 645 is Too Low for a Mortgage
If your credit score is below 645, don’t lose hope. Here are some alternative options to explore:
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Apply with a lender who offers portfolio lending or non-conforming loans
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Ask if you qualify for an FHA loan with a 10% down payment
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Consider a co-signer with better credit to strengthen your application
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Work on credit repair to boost your score
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Save up for a larger down payment to offset credit risk
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Delay your home purchase 1-2 years to improve your financial profile
The most important thing is not to get discouraged. With patience and a plan, many borrowers can reach their goal of homeownership.
The Bottom Line
A credit score of 645 is on the lower end of what lenders like to see when underwriting mortgages. While it meets the minimum requirements for most conventional loans, borrowers with 645 scores often pay higher interest rates and need to make larger down payments. Improving your credit before applying for a mortgage can help you qualify for better loan programs and save money. With diligence, a 645 score can still make homeownership possible.
Avoid Applying for New Credit
Applying for and opening new credit accounts not only impacts your credit score but can also increase your DTI. Because of this, many mortgage lenders would rather you don’t apply for credit in the months before you apply for a mortgage or while the mortgage process is going on.
If you need to apply for credit, prepare to explain your reasoning. Even with a good reason, however, it could impact your approval odds.
Cutting back on your spending can boost your savings and also help keep your credit utilization rate down. Take a look at your budget and identify areas where you can reasonably pare back on your expenses as you work to prepare for your mortgage application.
How Your Credit Score Affects Mortgage Rates
Your credit score is a crucial factor in determining your eligibility for a mortgage loan. But while meeting the minimum score requirement can help you get approved, it may not be enough to make your monthly payment affordable.
If your credit score is in great shape, you may have several different loan types to choose from, as well as a good chance of securing a low interest rate. In light of this, the following is the average mortgage rate by FICO® ScoreÎ range with Experian as of mid-July 2024:
| FICO® Score Range | Average Interest Rate |
|---|---|
| 760 â 850 | 6.237% |
| 700 â 759 | 6.459% |
| 680 â 699 | 6.636% |
| 660 â 679 | 6.85% |
| 640 â 659 | 7.28% |
| 620 â 639 | 7.826% |
Source: myFICO
Borrowers with higher credit scores also tend to take out larger loans. Heres a breakdown of consumers average mortgage balance based on FICO® Score ranges, as of September 2023:
| FICO® Score Range | Average Mortgage Balance |
|---|---|
| 800 â 850 | $256,897 |
| 740 â 799 | $256,087 |
| 670 â 739 | $236,807 |
| 740 â 799 | $194,433 |
| 800 â 850 | $180,584 |
Source: Experian
Best Home Loan for First Time Home Buyer With 700 Credit Score or Better
FAQ
Can you get a mortgage with a 620 credit score?
Generally, the higher your credit score, the more likely you’ll qualify for a mortgage loan with these lenders. Many will accept a credit score as low as 620, but they may have other requirements for those borrowers, such as a higher income or a larger down payment.
What credit score do you need to buy a house?
To buy a house, most mortgages (including the popular conventional loan) need a credit score of at least 620. A higher score puts you in better shape, though. If your score is 740 or higher, you have the most options and can get the best interest rates. If your score is below 620, you still have options.
Is a 645 credit score considered fair?
A 645 credit score is considered fair. A fair score (based on Credit Karma data from 2023) might not be the best, but it might still make it hard for you to get credit without having to pay a lot in fees and interest.
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 500 to 580 is the lowest credit score that FHA will accept, it is more likely that potential FHA borrowers will have a score between 580 and 620. The minimum credit score to buy a house with a VA loan is 580 to 620.
Can you buy a house with a low credit score?
But if one applicant has a low credit score, you may consider applying for the loan using only the applicant with a healthy credit score. If you omit one applicant’s credit score, you must also omit their income from the application. What is a good credit score to buy a house? A good credit score to buy a house is 720 or higher.
Do you need a 640 credit score to get a loan?
Borrowers generally need a minimum score of 640 to qualify for a USDA loan. In some cases, USDA lenders may consider a lower score with additional analysis of a borrower’s credit. VA loans: Guaranteed by the U.S. Department of Veterans Affairs, VA loans are offered to active and veteran military personnel and their families.
What can I qualify for with a 645 credit score?
Key Takeaways for a 645 Credit Score
Fair credit indicates a borrower may have issues with their debt obligations. Borrowers with a 645 credit score may qualify for different types of installment loans, such as personal loans, mortgages, and auto loans. However, the loan terms may be less-than-ideal.
How good is a 645 credit score to buy a house?
Buying a home with a 645 credit score may be possible, but it may be more challenging than if you had an excellent credit score. Some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms.
How much of a loan can I get with a 645 credit score?
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
What credit score is needed for a $250000 house?
What credit score do I need to buy a $250,000 house? You can buy a $250,000 house with a wide range of credit scores, from as low as 500 to as high as 800+.Mar 19, 2025