What Is A Good FICO Score To Buy A House

Thinking about buying a house but unsure if your credit score is good enough to qualify? You’re not alone. One of the most common questions for first-time homebuyers is what kind of FICO score makes lenders say “yes” — or “we’ll need to see more.” The short answer: it depends. Not just on the score itself, but on the type of loan you’re going after, your down payment, even where you live.

A “good” credit score isn’t some magical number. For some folks it means crossing 620 just to get through the door. For others, it’s hitting 740+ to scoop up the best possible rates. And in the current year’s tighter credit climate? There’s even more going on behind the curtain. Lenders are adding stricter rules, leaning heavier on past payment history, and weighing things like debt-to-income before making a call.

So what does “good” really mean for home buying today? Let’s break it down tier by tier, looking at what matters to lenders — and what gets you the kind of financing that doesn’t keep you awake at night.

Why “Good” Isn’t One-Size-Fits-All

FICO scores fall into five main brackets:

• 300–579: Poor
• 580–669: Fair
• 670–739: Good
• 740–799: Very Good
• 800–850: Excellent

But here’s the twist — mortgage lenders don’t always agree with that scale. What’s considered “good enough” can shift depending on loan type, the lender’s policies, and even the local market. Some lenders will approve you at 620 for a conventional loan, while others might decline unless you’re closer to 660.

Let’s take 620 as an example. Technically, that’s the minimum for a lot of loans. But getting approved isn’t guaranteed. At that level, your debt-to-income ratio, recent credit activity, or past delinquencies could easily tip the decision the other way.

The truth? “Good” doesn’t start at a fixed number — it starts where your overall profile starts telling lenders, “This borrower’s solid.”

The Minimum Score To Get In The Door

Every loan type sets its own baseline. And while lenders sometimes go lower with strong financials elsewhere, these are the typical score floors:

These are entry points — just enough to apply. If you’re sitting just at the threshold, be ready to provide extra documentation, lower your debts, or prove savings. Lenders want to know you’re not walking on a credit tightrope.

What Score Gets You Better Rates (And Less Stress)?

If you want to sleep well at night — and pay less across decades of mortgage payments — getting your FICO into the 700s is a smart move. There’s a big shift once you hit 700, and another leap at 740. These aren’t subtle discounts either — even a 20-point bump can shave hundreds off your monthly payment.

Here’s why it matters:

• 740+: Lenders view you as “super prime” — best fixed rates, lowest private mortgage insurance (PMI), and more loan approval power
• 700–739: Still strong, opens up conventional loans with lower fees
• 680–699: Acceptable for many mortgage products, but your rate may come with some padding

The closer your score gets to these rate “trigger” levels, the more negotiating power you have on everything from points to closing costs. That’s real money staying in your pocket — money you can put back into your house (or save for emergencies).

Your Debt-to-Income Ratio (DTI): The Silent Deal-Breaker

Most people think a high credit score is the golden ticket to loan approval—but even a 750 won’t save you if your debt-to-income ratio is out of whack. Lenders care just as much (and sometimes more) about whether your income can actually support a mortgage payment.

Your DTI compares your total monthly debts (including student loans, credit cards, car payments, and the new mortgage) to your gross monthly income. Do the math like this:

• DTI = Total Monthly Debt ÷ Gross Monthly Income (before taxes)

Here’s what most lenders want to see:

• Conventional loans: Below 43%, though under 36% gets you the best shot
• FHA loans: Up to 50% is sometimes accepted, especially with good reserves or a stable job

Bottom line—if your paycheck’s already stretched thin by credit card debt, adding a mortgage might break the deal. Even if your FICO is looking pretty, lenders won’t greenlight a loan if their formulas say “not affordable.”

Late Payments, Collections, and Charge-Offs

One 30-day late payment won’t ruin your life, but three of them in the last 12 months could tank your mortgage chances—fast. Especially with FHA or VA loans, recent delinquencies scream “risky,” no matter what your credit score says.

Derogatory marks like charge-offs or accounts in collections stick around for up to 7 years. But how recently they happened matters just as much. A collection from six years ago? Probably ignored. A fresh one from 3 months ago? Might be a dealbreaker.

If your past looks a little rough, it’s not over:

• Get current and stay that way—seriously, on-time payments matter more than anything else in recovery.
• If you’re close to applying, write a short letter of explanation. Lenders hate surprises but respect honesty.

It’s not about being perfect—it’s about being consistent, stable, and ready to take on a mortgage with clear eyes.

Credit History Beyond the Number

Two people with the same score can get very different answers from lenders. Why? Because your credit report tells a story—not just a number.

Things like the age of your accounts, the types of debt you’ve used, and recent credit pulls all shape the lender’s impression. If you’ve only had credit for a year or opened three new cards in the past 90 days, that raises eyebrows.

Even with a 700 FICO, a thin file or too many inquiries might suggest you’re stretching. And lenders want stability—longevity beats shininess in this game.

If you’re getting denied with a “good” score, don’t assume the number is wrong. The context behind it matters just as much.

What Actually Happens at 700+?

Crossing the 700 line feels like a breath of fresh air—for good reason. You usually unlock better mortgage rates, reduce your loan costs, and skip some of the underwriting drama.

But here’s the catch: lenders still care about your debt, job security, and payment history. A 705 doesn’t make you untouchable if your DTI is 52% or you missed two car payments last quarter.

It’s a key milestone—but not a hall pass. Think of 700 as opening the door, not guaranteeing the welcome mat.

Getting from 590 to 680: Payoffs That Matter

When you’re starting below 600, every point counts. The good news? Strategic changes can move your FICO quickly—sometimes in just a few weeks.

• Pay down credit cards below 30% of their limit—under 10% is even better.
• Fix errors on your credit reports. Disputing just one faulty $200 collection can make a visible difference.
• Don’t open new accounts unless absolutely necessary—it can slice points fast, especially if your file’s short.

One late payment usually stays on your report for 7 years, but its sting is strongest in the first 12–24 months. Time doesn’t erase it, but distance helps.

And about rapid rescoring—yes, it’s real, but only available through mortgage lenders. It won’t boost bad credit overnight, but if you’ve paid off debts and need to show that now—not in 30 days—it can bridge that gap in crunch time.

Lender Belts Are Tightening — What Now?

the current year brought big shifts. Rising defaults, inflation pressure, and tighter margins mean lenders aren’t giving as much grace as before.

“Okay” credit—think 620s or low 600s—feels a lot shakier now. Automated underwriting systems flag borderline files faster, and human underwriters aren’t always stepping in to help.

Trying to buy with a barely-over-the-line score? Strengthen your case:

• Save up for a bigger down payment.
• Cut monthly debts aggressively in the months before applying.
• Show income stability—longer job time helps more than you think.

You don’t need perfection—but in this climate, scraping by isn’t getting many green lights. Stronger files win the house. Every piece counts.