What Credit Score Do You Really Need to Buy a Home?

By Team Prosper · Updated July 2026

People assume mortgage credit requirements are far higher than they are, and that assumption keeps qualified buyers on the sidelines for years. Here are the actual thresholds, what your score does to your rate, and the moves that raise it fastest.

The Real Minimums by Loan Type

These are guidelines, not guarantees, and the rest of your file matters. But notice what is not on that list: 700, 750, or "excellent credit." A 580 score with steady income has real options, especially FHA. See how the programs compare in our FHA vs conventional guide.

What Your Score Does to Your Rate

Minimum qualifying and best pricing are different things. Conventional pricing improves in tiers roughly every 20 points, with the biggest jumps between the low 600s and 740+. Moving from 640 to 720 can save real money every month on the same house. This is why "wait 60 days and fix two things" is sometimes the most profitable advice a lender can give, and we give it when it is true.

The Fastest Legitimate Score Boosters

1. Pay credit cards below 30 percent of their limits (below 10 percent is even better). Utilization updates fast; this is the single quickest lever.
2. Do not close old cards. Age of credit helps you.
3. Dispute genuine errors on your reports at all three bureaus.
4. Become an authorized user on a family member's old, clean, low-balance card.
5. No new credit in the months before and during your home purchase. No cars, no furniture financing, no store cards at the register.

Buying With Bruised Credit

Collections, medical debt, a past bankruptcy or foreclosure: none of these are automatic dead ends. FHA in particular has defined waiting periods after major events, often shorter than people assume, and many collections do not need to be paid off to close. The only way to know is to let a professional read the actual report, not the free-app estimate of it.

The Bottom Line

You need less credit than you think to buy, and more credit than the minimum to get the best deal. Wherever you are on that spectrum, the right move is the same: get your real report reviewed, get a plan, and stop guessing. It costs nothing, and it is the first step of the path to your first home.