It’s easy to get excited about buying a home, but if you’re planning to take out a mortgage—which most buyers do—you’ll probably need to boost your credit score first.

Your credit score, often called a FICO score, is basically a quick snapshot of how well you’ve managed your debts and made your loan payments on time. When you’re looking to borrow money for a home, mortgage lenders use this score to gauge how likely you are to repay them as agreed. It’s a simple way for them to check the risk before approving your loan.

Here’s a quick guide to this crucial number and tips on how to get it in top shape for buying a home.

What credit score do you need to buy a house?

The Federal Housing Administration sets a minimum credit score of 580 to qualify for a 3.5% down payment. Most major lenders usually want to see a score of at least 620, sometimes even higher. While a few might accept scores as low as 500, it’s not something you should rely on.

There are three main credit bureaus in the U.S.—Experian, Equifax, and TransUnion—and each one provides its own credit scores and reports. These reports give a detailed look at your credit history, which is what they use to calculate your score. While their scores are generally similar, they pull information from different places. For instance, Experian looks at your on-time rent payments, while TransUnion includes detailed info about your past employers.

Financial planner Bob Forrest from Mutual of Omaha suggests checking out AnnualCreditReport.com to get your credit reports for free once a year from each of the credit bureaus. Keep in mind, this site doesn’t give you your credit score—you’ll need to visit each credit bureau individually to get your score, and there’s usually a small fee involved.

You can also reach out to your credit card company—many card issuers provide free access to your credit scores and reports, says Michael Chadwick, owner of Chadwick Financial Advisors in Unionville, CT. Once you have your report, take the time to go through it carefully, especially the “adverse accounts” section where you'll find details about late payments and any other issues.

 Best way to boost your credit for homebuyers

Improving your credit score can take some effort, but it’s definitely worth it in the long run. The first step is figuring out what’s causing your score to stay low. It could be anything from missed payments to mistakes on your report that you might not even know about. Once you identify the issue, you can start working on fixing it.

Credit score error disputes

A 2021 Consumer Reports study showed that about one in three people noticed at least one mistake on their credit report. If you find errors on yours, the best thing to do is send a dispute letter to the credit bureau. Make sure to include as much supporting documentation as you can, following the FTC’s recommendations.

You'll want to get in touch with the source that gave the incorrect information, like a bank or a medical provider, and ask them to update the details with the credit bureau. This process can take some time, and you might have to provide paperwork to support your request. But once the wrong info is fixed, you should notice an improvement in your credit score.

Erase one-time mistakes

““If you had an oopsy and missed just a payment or two, most companies will indeed tell their reporting division to remove this from your credit report,””

— Bob Forrest of Mutual of Omaha

So you’ve made a late payment or two — it happens. Just call the company that reported it and ask if they can remove it from your record. It won’t work if late payments are a pattern, but for one-off mistakes or small slip-ups, it’s a quick way to give your credit score a boost.

Increase your limits

An easy way to boost your credit score is to pay off your debt. If that’s not doable right now, here’s a neat trick: ask your credit card companies to raise your credit limit. This helps improve your debt-to-credit ratio, which is just the balance between what you owe and how much credit you have available.

““Having $1,000 of credit card debt is bad if you have a limit of $1,500. It isn’t nearly as bad if your limit is $5,000,””

— Bob Forrest of Mutual of Omaha

The math is simple — your balance may be the same, but now you’re using a much smaller chunk of your available credit, and that makes your borrowing habits look a whole lot better.

Pay on time

If you find yourself frequently missing payment deadlines, it's a good idea to make a change now. You actually have the ability to boost your credit score on your own. Make a commitment to pay your bills on time every month. To make it easier, you might want to set up automatic payments so you never have to worry about forgetting.

Give yourself time

Negative marks on your credit report, like late or missed payments, can stick around for up to seven years. But here’s the bright side: improving how you manage your payments can really boost the “payment history” portion of your credit score—that’s a big deal since it makes up about 35% of your overall score. So, getting into good habits early puts you in a great spot when you’re ready to shop for a home you’ll love.

Credit score needed to buy a house by loan type

When it comes to the five most common loans new homebuyers use to purchase a house, here’s a quick look at the credit scores you’ll typically need:

 Conventional Loans Minimum Credit Score: 620

If you’re looking into the most common type of mortgage loans, you’ll usually need a credit score of at least 620. Some lenders might ask for 660 or higher, while others may accept scores as low as 500. Just keep in mind, these loans aren’t backed by government agencies like Fannie Mae or Freddie Mac.

Jumbo Loans Minimum Credit Score: 700

A jumbo loan is just what it sounds like—it lets lenders offer a larger loan amount while still sticking to the usual rules of a conventional loan. The catch? Because it’s for more money, you'll typically need a credit score of 700 or higher.

 FHA Loans Minimum Credit Score: 500

If you’re using an FHA loan backed by the Federal Housing Administration, you’ll need a minimum credit score of 500 if you’re putting down 10% or more. But if your down payment is less than 10%, your credit score should be at least 580.

VA Loans Minimum Credit Score: 620

The U.S. Department of Veterans Affairs doesn’t have a set minimum credit score for VA loans, but most lenders prefer to see a score of 620 or above. These loans are meant for military members, veterans, their spouses, and a few other eligible individuals.

 USDA Loans Minimum Credit Score: 580

USDA loans, supported by the U.S. Department of Agriculture, are designed for buyers with low to moderate incomes who want to buy a home in rural locations. Typically, lenders prefer a credit score in the range of 580 to 620.