What is the credit score needed to buy a house? | U.S. Bank (2024)

A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.

First, let’s talk about credit scores.

Your credit score (commonly called a FICO® Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home. Credit scores are maintained by the national credit bureaus and include debt like credit cards, auto loans or student loans.

Your score is influenced by many factors, but the two biggest are whether you pay your bills on time and how much debt you owe. Having a credit score based on these factors gives lenders a quick way to see if you’re likely to pay your future bills – like your mortgage, for example.

Credit score and mortgages

Though your credit score is a big factor in the mortgage process, it doesn’t necessarily mean that you won’t be able to get a mortgage if you don’t have a great score. Lenders will also consider your income, employment history and debt, along with the amount of the mortgage you’re requesting and your down payment. If lenders review all the information and determine that you are likely to make your mortgage payments in full and on time, you may be able to get better loan terms.

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs). Ourmortgage loan officerscan help you figure out what mortgage options would best fit your situation and lifestyle.

Boosting your credit score

If you have bad credit but are a first-time homebuyer, start maximizing your score before you begin house hunting. Check your credit score so you know where you stand, review your credit history to make sure it’s accurate and remember to consistently pay your bills on time. You cancheck your credit score for free with our toolif you’re a current U.S. Bank client.

When lenders see multiple applications for credit reported in a short period of time, it can discourage them from giving you a loan. So here’s a short list of things to try to avoid when applying for a mortgage so that you can keep your options open.

  • Avoid opening new credit cards.
  • Avoid closing credit cards (since this can also impact your credit score).
  • Avoid applying for new loans.
  • Avoid co-signing on any new loans.

Looking for more ways to improve your credit score? Here are somecredit-boosting tips that can help.

You don’t have to have a top credit score to get a mortgage, but it will help you compete for the house you want by potentially giving you more financing options. So, take steps to try to boost your credit, avoid applying for credit products at the same time you’re house hunting and talk over your options with a mortgage loan officer who can help.

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What is the credit score needed to buy a house? | U.S. Bank (2024)


What is the credit score needed to buy a house? | U.S. Bank? ›

Credit score and mortgages

What credit score is needed for U.S. Bank? ›

You need a credit score of at least 750 to get most U.S. Bank credit cards, but the actual credit score requirements vary by card. One of the easiest U.S. Bank credit cards to get is the U.S. Bank Secured Visa® Card, which accepts applicants with bad credit and has a $0 annual fee.

What is the minimum credit score to apply for a house? ›

For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.

What score does the U.S. Bank use? ›

U.S Bank uses an applicant's FICO® Score to check their creditworthiness. FICO® Score is the type of credit score that's most widely used by lenders.

What credit score is needed to buy a $400,000 house? ›

Your credit score has less bearing on your ability to get a mortgage than you might think. The minimum FICO score for a conventional loan is 620. The best rate comes with a score of 740 or higher. There is no particular advantage to having a score of 800, although it is, of course, laudable.

Is U.S. Bank hard to get approved for? ›

Bank customers need to have a minimum credit score of 660 to qualify for its loans, while non-customers need a credit score of at least 720 to qualify.

Can I buy a house with a 580 credit score? ›

The Federal Housing Administration (FHA) insures FHA loans, which allows mortgage lenders to accept a credit score as low as 580 with a 3.5 percent down payment, or 500 with a 10 percent down payment.

What credit score do I need to buy a $250000 house? ›

Conventional loan | Credit score: 620

To qualify for a conventional loan, you'll need a credit score of at least 620, though some lenders may choose to approve conventional mortgage applications only for borrowers with credit scores of 680 and up.

What is a realistic credit score to buy a house? ›

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

How much can I borrow with a 580 credit score? ›

You can borrow anywhere from a few thousand dollars to $100,000+ with a 580 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Does the U.S. Bank have pre-approval? ›

Applying for pre-approval can put you one step ahead while you're shopping for your next vehicle.

Does U.S. Bank run your credit? ›

Once you submit your application, U.S. Bank will request a full credit report, which may affect your credit score.

How to build credit score U.S. Bank? ›

Pay your bills on time

Even if you have a history of missed payments, it's possible to get back on track. Try to pay at least the minimum on any credit card balances, and consider setting up automatic payments or alerts to help you keep up with due dates.

How much income do you need to buy a $250,000 house? ›

If you follow the 2.5 times your income rule, you divide the cost of the home by 2.5 to determine how much money you need to earn annually to afford it. Based on this rule, you would need to earn $100,000 per year to comfortably purchase a $250,000 home.

How much income do you need to qualify for a $300,000 mortgage? ›

How much do I need to make to buy a $300K house? To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.

How much do I need to make to afford a $200,000 house? ›

That amounts to $15,600 annually on mortgage payments. Housing-affordability guidelines suggest spending no more than about one-third of your income on housing. So, by tripling the $15,600 annual total, you'll find that you'd need to earn at least $46,800 a year to afford the monthly payments on a $200,000 home.

What is the easiest U.S. Bank card to get approved for? ›

The U.S. Bank Cash+® Visa® Secured Card is easy to get, even with poor credit or no credit, because it is a secured credit card and requires an upfront deposit. But unlike many other secured credit cards, it has a generous rewards structure.

What is the easiest U.S. Bank credit card to get approved for? ›

U.S. Bank Cash+ ® Secured Visa ® Card.

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