Short answerIt depends on the loan and the lender. FHA allows 3.5% down with a 580 score and 10% down from 500 to 579. Fannie Mae removed its 620 minimum for loans run through its automated system in November 2025, but lenders and mortgage insurers may still set minimums. VA and USDA rely heavily on lender standards.
By loan type
| Loan | Program rule | What lenders often want |
|---|---|---|
| FHA | 580 for 3.5% down; 500 to 579 with 10% down | Many lenders set 580 to 620 |
| Conventional | No fixed minimum in Fannie Mae's system since Nov 16, 2025 | Lender and mortgage insurer minimums still apply; 620 is common |
| VA | No VA set minimum | Lender standards |
| USDA | Lender underwriting | Often around 640 for automated approval |
How to improve your odds
- Pay every bill on time.
- Lower card balances relative to limits.
- Fix errors on your credit reports at annualcreditreport.com.
- Avoid new credit before applying.
Loan rules and rates change and depend on your file. Your lender has the final word on what you qualify for.
Frequently asked questions
Can I buy a house with a 550 score?
Possibly with FHA and 10% down, if a lender will accept it. Expect fewer lender choices.
Does a higher score lower my rate?
On conventional loans, yes, often significantly.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- RISMedia, Fannie Mae lifts minimum credit score on Desktop Underwriter loans, November 2025
- HUD, FHA Single Family Housing Policy Handbook 4000.1
- AnnualCreditReport.com
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.