What Credit Score Do I Need to Buy a House?

Most lenders have a baseline credit score by which they largely make their decision to approve or deny mortgage applicants. On most scoring scales, the maximum credit score is 850, though a score of a perfect 850 is rare. Any score in the 700s or above is typically considered excellent and will most likely get you a loan with the lowest interest rate. When your score drops into the 600s, it starts getting dicey. A score of 680, for example, is still considered good, but when you get below 660, some lenders start saying no. For others, 640 or 620 is the line at which you won’t be considered for their better programs. It all just depends on that particular lender.

Can I Buy a House With ‘Bad’ Credit?

Once your credit score drops into the 500s, you are a candidate for a bad credit home loan or what the industry calls subprime loans. These loans have interest rates that are a couple of percentage points higher than those offered to prime borrowers. Subprime loans also often come with additional fees.

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