What credit score do you need to buy a house?
There is no single number. There is how each loan program and each lender treats your score — and that you can work on.
Why there is no single answer
Every loan program has its own credit guidelines, and every lender can add stricter rules of its own on top (called overlays). So the same score can be a yes at one lender and a no at another, or a yes for an FHA loan and a no for a conventional one.
Minimums also change over time, which is why this page does not promise a number. What does not change is the shape of it: higher scores get approved more easily, at lower rates and, on conventional loans, with cheaper mortgage insurance.
How each loan type tends to treat credit
If your score is borderline, ask a lender which programs it can work with and what score moves you into a better price tier. Sometimes a few points changes the rate.
| Loan type | How credit is weighed |
|---|---|
| Conventional | Score has the biggest effect on both rate and mortgage insurance cost. Best suited to stronger credit. |
| FHA | Designed to be more forgiving of lower scores and thinner histories. Lower scores may require a larger down payment. |
| VA | The VA itself does not set a minimum score; lenders set their own. Looks hard at residual income, not just the score. |
| USDA | Lenders apply their own score guidelines; weaker files may be underwritten manually with more documentation. |
What lenders read besides the score
- Payment history — recent late payments matter more than old ones, and a late mortgage or rent payment matters most.
- Collections, charge-offs and judgments — some must be paid or explained before closing, depending on the program.
- Bankruptcy or foreclosure — each program has its own waiting period from the discharge or completion date.
- Credit utilization — how much of your card limits you are using. High balances drag scores even when every payment is on time.
- Your debts as monthly payments — these feed your debt-to-income ratio, which can sink an application with a good score.
Raising your score in the months before you apply
- Pull your reports from all three bureaus (free through the official annual credit report site linked from consumerfinance.gov) and dispute anything that is wrong.
- Pay card balances down — utilization is the fastest-moving part of most scores.
- Keep every payment on time from here forward. Set up autopay on minimums.
- Do not open new accounts or close old ones right before applying.
- Ask a lender about a rapid rescore if you pay something down mid-process; they can sometimes have the bureaus update within days.
What a low score costs you, and what to do about it
A lower score usually means a higher rate, and on a conventional loan a higher mortgage insurance premium. Over a 30-year loan that difference is real money, so it can be worth waiting a few months to improve a score before you buy — or buying now with an FHA loan and refinancing later if your credit improves.
Two other levers can help: a larger down payment, and homes with an assumable FHA or VA loan, where you take over the seller's existing rate. Browse them on assumable-loan homes — the servicer still checks your credit, but you are not pricing a new loan.
Two buyers, same house
Picture two buyers making the same offer on the same Georgia home, each putting 5% down on a conventional loan. One has a high score and a long, clean history; the other has a score in the low range lenders still accept, with a couple of late payments two years ago.
Both can be approved. But the second buyer is likely to be quoted a higher rate and, because the down payment is under 20%, a noticeably more expensive private mortgage insurance premium. Added together, the difference in monthly payment can be enough to change which homes fit the budget. Asked to price an FHA loan instead, the second buyer may find FHA cheaper; the first buyer almost certainly will not.
The lesson is not that one score is "good enough". It is that your score sets the price of the loan, so ask lenders to price you at more than one program and at the next score tier up.
How the credit part of an application unfolds
- You authorize the lender to pull a tri-merge report — all three bureaus at once.
- The lender uses the middle of your three scores (with two borrowers, usually the lower of the two middle scores) to price the loan.
- Automated underwriting reviews the whole file — credit, debts, assets, income — and returns an approval with conditions, or refers it to a human underwriter.
- You explain anything the underwriter flags: an inquiry, a late payment, a collection. Short, factual letters work best.
- Shortly before closing, the lender may run a soft check to make sure no new debt has appeared. A new card or car loan here can delay or change your approval.
Georgia specifics worth knowing
Georgia Dream, the state's down payment assistance program run by the Department of Community Affairs, sets its own credit standards on top of the loan program's, so ask a participating lender how your score fits before you plan around it. And if credit stands between you and a purchase, HUD-approved housing counseling agencies in Georgia offer free or low-cost credit counseling — listed on hud.gov.
Common questions
Can I buy a house with bad credit in Georgia?
Often, yes — FHA loans in particular are built for lower scores and limited histories, and some lenders specialise in rebuilding-credit files. Expect a higher rate and possibly a larger down payment requirement.
Which credit score do mortgage lenders use?
Mortgage lenders generally pull scores from all three bureaus and use the middle one (or, for joint applicants, the lower middle score). It is often different from the score your bank app shows.
Do I need a credit score at all?
Some programs allow manual underwriting with non-traditional credit, such as rent and utility payment history, for borrowers without a score. Ask lenders specifically whether they do this.
Will checking my own credit lower my score?
No. Checking your own credit is a soft inquiry and does not affect your score.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.