Can I buy a house with a 620 credit score?
As people ask it
My middle credit score is 620. I have steady income and about 5% saved. Is 620 good enough to buy a house, or should I wait and fix my credit first?
The short answer
Yes. A 620 credit score clears FHA's 580 bar for 3.5% down, and many lenders will consider you for conventional and VA loans too. The catch is cost: at 620 you will usually pay a higher rate and more for mortgage insurance than someone at 700+. Compare at least three lenders, and see if a small score bump would save you real money.
Key takeaways
- FHA loans accept a 580 or higher credit score with 3.5% down, so a 620 score clears HUD's bar with room to spare.
- Fannie Mae removed its fixed 620 minimum for loans run through Desktop Underwriter, but lenders and mortgage insurers can still set their own minimums.
- VA does not publish a minimum credit score; VA and your lender both set credit standards.
- At 620 you will usually pay a higher interest rate and more for mortgage insurance than a borrower with a 700+ score.
- Mortgage lenders usually use your middle score from the three credit bureaus, so check all three reports before you apply.
- Credit checks from several mortgage lenders within 45 days count as a single inquiry, so shopping around costs little.
Run your own numbers with our Debt-to-Income Ratio Calculator.
In this answer
Yes, you can buy a house with a 620 credit score. In 2026, a 620 score meets the bar for an FHA loan with 3.5% down, and many lenders will also look at you for a conventional or VA loan. So the real question is not “can I buy a house with a 620 credit score?” but “how much will a 620 score cost me, and which loan fits best?”
A 620 score is often treated as the edge of “fair” credit. You can get approved, but you will usually pay more each month than a buyer with a 700 or 740 score. This guide walks through the rules for each loan type, what a 620 score does to your payment, and the quickest ways to strengthen your file before you apply.
Is 620 a good enough credit score to buy a house?
A 620 score is good enough for most mainstream loan types, but it is not a strong score. It clears FHA’s minimum easily and sits at the line many lenders have long used for conventional loans. Expect to qualify with the right lender, but at a higher price than borrowers with stronger credit.
The Consumer Financial Protection Bureau (CFPB) explains that a credit score is a prediction of how likely you are to repay a loan on time. In its words, “Usually a higher score makes it easier to qualify for a loan and may result in a better interest rate or loan terms” (CFPB). Most scores run from 300 to 850.
A 620 score tells a lender you have some risk in your history. That might be a past late payment, a high card balance or a short credit history. The lender’s job is to weigh that against your income, savings and debts.
Which loan types accept a 620 credit score?
FHA, conventional and VA loans can all work at 620. FHA is usually the most forgiving on credit, conventional loans can be cheaper if the rest of your file is strong, and VA loans are open to eligible service members and veterans. Each one has its own rules, and lenders can add stricter ones.
Here is how the main programs treat a 620 score as of October 2026.
| Loan type | Official credit score rule | Minimum down payment | What 620 means for you |
|---|---|---|---|
| FHA | 580+ for maximum financing; 500–579 limited to 90% loan-to-value | 3.5% (at 580+) | Comfortably eligible under HUD rules |
| Conventional (Fannie Mae, automated) | No fixed minimum score in Desktop Underwriter | Varies by program | Eligible if the full file passes; lender limits may apply |
| Conventional (Fannie Mae, manual) | 620 for fixed-rate, 640 for ARMs | Varies by program | Right at the fixed-rate minimum |
| VA | No published VA minimum; VA and lender set standards | Often $0 if price is not above appraised value | Depends on the lender’s own floor |
FHA loans
FHA loans are insured by the Federal Housing Administration, part of HUD. HUD’s handbook says a borrower with a score “at or above 580” is eligible for maximum financing, while a score “between 500 and 579” is limited to a 90% loan-to-value ratio. Below 500, the borrower is not eligible (HUD Handbook 4000.1). The minimum down payment at 580+ is 3.5% of the home’s adjusted value.
FHA loans carry mortgage insurance premiums (MIP). There is an upfront premium of 1.75% of the base loan, which most buyers roll into the loan. Under the annual rates HUD set in March 2023, most 30-year FHA loans with less than 5% down pay 0.55% per year for the life of the loan (HUD Mortgagee Letter 2023-05). Importantly, FHA’s premium does not change with your credit score.
Conventional loans
Conventional loans are not insured by the government. Most are sold to Fannie Mae or Freddie Mac. For years, 620 was Fannie Mae’s firm minimum. For loan files created on or after November 16, 2025, Fannie Mae removed that fixed minimum for loans run through its Desktop Underwriter (DU) system. Its Selling Guide now says DU loan casefiles have no minimum score and that DU instead weighs its own risk factors (Fannie Mae Selling Guide). Manually underwritten loans still need a 620 for fixed-rate loans and 640 for adjustable-rate mortgages (ARMs).
Conventional loans with less than 20% down need private mortgage insurance (PMI). Unlike FHA, PMI pricing usually rises as your score falls. That is the main reason a 620 buyer often finds FHA cheaper. For a full side-by-side, see our guide to FHA vs conventional loans.
VA loans
VA-backed loans are for eligible service members, veterans and some surviving spouses. The Department of Veterans Affairs does not post a numeric minimum score. Instead, it says you must “meet our—and your lender’s—standards for credit, income, and any other requirements” (VA). VA loans often need no down payment and have no monthly mortgage insurance, though most borrowers pay a one-time funding fee. Many lenders set their own floor, so ask each one.
| Loan | Minimum score | Down payment |
|---|---|---|
| FHA | 580 | 3.5% |
| FHA | 500–579 | 10% |
| Conventional (Desktop Underwriter) | No fixed minimum | From 3% |
| Conventional (manual underwriting) | 620 fixed rate / 640 ARM | From 3% |
Source: HUD Handbook 4000.1; Fannie Mae Selling Guide B3-5.1-01 (as of October 18, 2026).
What does a 620 credit score cost you?
A 620 score usually costs you through a higher interest rate and, on conventional loans, higher mortgage insurance. Over 30 years, even half a percentage point adds up to tens of thousands of dollars. That gap is why it often pays to raise your score a little before you lock a rate.
The CFPB’s rate tool compares scenarios side by side and shows that a 700 score can get a meaningfully lower rate range than a 625 score (CFPB Explore interest rates). We do not quote today’s rates here. For current national averages, check Freddie Mac’s weekly Primary Mortgage Market Survey.
On a conventional loan, the score also drives your PMI premium and certain lender pricing fees. On an FHA loan, the MIP rate stays the same at 620 or 760, but the interest rate a lender offers can still vary with your score.
- more a month at 7.0% than at 6.5%
- About $100
- more interest over 30 years
- About $35,900
View data as table
| Monthly payment | |
|---|---|
| Example rate 6.5% | $1,896 |
| Example rate 7% | $1,996 |
Source: Mortgage Advice Daily calculation (worked example) (as of October 18, 2026). Worked example, not a quote
- 30-year fixed
- 15-year fixed
View data as table
| Week of | 30-year fixed | 15-year fixed |
|---|---|---|
| October 16, 2025 | 6.27% | 5.52% |
| October 23, 2025 | 6.19% | 5.44% |
| October 30, 2025 | 6.17% | 5.41% |
| November 6, 2025 | 6.22% | 5.5% |
| November 13, 2025 | 6.24% | 5.49% |
| November 20, 2025 | 6.26% | 5.54% |
| November 26, 2025 | 6.23% | 5.51% |
| December 4, 2025 | 6.19% | 5.44% |
| December 11, 2025 | 6.22% | 5.54% |
| December 18, 2025 | 6.21% | 5.47% |
| December 24, 2025 | 6.18% | 5.5% |
| December 31, 2025 | 6.15% | 5.44% |
| January 8, 2026 | 6.16% | 5.46% |
| January 15, 2026 | 6.06% | 5.38% |
| January 22, 2026 | 6.09% | 5.44% |
| January 29, 2026 | 6.1% | 5.49% |
| February 5, 2026 | 6.11% | 5.5% |
| February 12, 2026 | 6.09% | 5.44% |
| February 19, 2026 | 6.01% | 5.35% |
| February 26, 2026 | 5.98% | 5.44% |
| March 5, 2026 | 6% | 5.43% |
| March 12, 2026 | 6.11% | 5.5% |
| March 19, 2026 | 6.22% | 5.54% |
| March 26, 2026 | 6.38% | 5.75% |
| April 2, 2026 | 6.46% | 5.77% |
| April 9, 2026 | 6.37% | 5.74% |
| April 16, 2026 | 6.3% | 5.65% |
| April 23, 2026 | 6.23% | 5.58% |
| April 30, 2026 | 6.3% | 5.64% |
| May 7, 2026 | 6.37% | 5.72% |
| May 14, 2026 | 6.36% | 5.71% |
| May 21, 2026 | 6.51% | 5.85% |
| May 28, 2026 | 6.53% | 5.87% |
| June 4, 2026 | 6.48% | 5.79% |
| June 11, 2026 | 6.52% | 5.84% |
| June 18, 2026 | 6.47% | 5.81% |
| June 25, 2026 | 6.49% | 5.84% |
| July 2, 2026 | 6.43% | 5.79% |
| July 9, 2026 | 6.49% | 5.82% |
| July 16, 2026 | 6.55% | 5.93% |
| July 23, 2026 | 6.58% | 5.96% |
| July 30, 2026 | 6.66% | 6.04% |
| August 6, 2026 | 6.69% | 6.01% |
| August 13, 2026 | 6.67% | 5.96% |
| August 20, 2026 | 6.65% | 5.95% |
| August 27, 2026 | 6.66% | 5.98% |
| September 3, 2026 | 6.71% | 6.04% |
| September 10, 2026 | 6.76% | 6.09% |
| September 17, 2026 | 6.95% | 6.26% |
| September 24, 2026 | 7.03% | 6.42% |
| October 1, 2026 | 7.28% | 6.6% |
| October 8, 2026 | 7.4% | 6.73% |
| October 15, 2026 | 7.4% | 6.71% |
Source: Freddie Mac Primary Mortgage Market Survey (via FRED) (as of October 15, 2026).
How do lenders read your credit score?
Mortgage lenders do not use the free score on your banking app. They pull a mortgage credit report with scores from Equifax, Experian and TransUnion, then use your middle score. With more than one borrower, the lowest of those middle scores usually sets the terms for the whole loan.
HUD’s handbook describes the method for FHA loans. Where three scores are reported, the median score counts. Where two are reported, the lower one counts. With several borrowers, the lender takes the lowest of their scores (HUD Handbook 4000.1). Conventional lenders use a similar middle-score approach.
This has two practical effects:
- One bad report can drag you down. If two bureaus show 640 and one shows 600 because of an error, your middle score is still 640. But if two show 615, your score is 615.
- A co-borrower does not “average up” your score for pricing. Their extra income can help you qualify, but your 620 may still set the rate.
What else do lenders look at besides your score?
Your score opens the door, but the rest of your file decides the outcome. Lenders also weigh your debt-to-income ratio, steady income, savings, down payment and the home itself. At 620, strengths in these areas matter more, because they can offset the risk your score signals.
Here are the factors that carry the most weight:
- Debt-to-income ratio (DTI). This is your monthly debt payments, including the new mortgage, divided by your gross monthly income. A lower DTI makes a 620 score easier to approve.
- Income history. Lenders want to see stable, documented income, usually over the past two years.
- Cash reserves. Money left in the bank after closing shows you can handle a surprise bill.
- Down payment. A bigger down payment lowers the lender’s risk and can lower your mortgage insurance.
- Recent credit events. A recent late payment, collection or bankruptcy weighs more than an old one.
FHA also has a helpful rule for renters. Its handbook lets a lender submit a “Positive Rental Payment History” for a first-time buyer on a purchase when the score is 620 or higher and at least one borrower paid $300 or more in rent each month for the past 12 months, backed by a lease and proof of payment (HUD Handbook 4000.1). At exactly 620, ask your lender whether it uses this option.
To see how your DTI shapes your budget, read how much house you can afford.
Should you buy now at 620 or raise your score first?
If a few points would move you into a better price tier within one or two months, it is usually worth waiting. If raising your score would take a year or more, buying now with an FHA loan and refinancing later may make more sense. Run the numbers both ways before deciding.
Ask each lender a simple question: “What would my rate and costs be at 640 or 660?” Some lenders can run a “what-if” simulation that shows which actions would lift your score fastest.
Common quick wins include:
- Pay down credit card balances. Using less of your available credit is one of the fastest ways to raise a score. Paying before the statement date helps the lower balance show up.
- Fix report errors. A wrong late payment or a debt that is not yours can cost you real points.
- Do not open new credit. New cards and car loans add inquiries and new debt right before underwriting.
- Keep every payment on time. One new 30-day late payment can undo months of progress.
How do you shop for a mortgage with a 620 score?
Shop with at least three lenders within a short window, compare official Loan Estimates, and ask each lender about its own score floor. Mortgage credit checks within 45 days of the first one count as a single inquiry, so comparing offers costs you very little on your score.
The CFPB says multiple credit checks from mortgage lenders are recorded as a single inquiry as long as the last check is within 45 days of the first (CFPB). It adds that the small effect on your score is usually outweighed by the savings from comparing.
When you compare, focus on:
- The interest rate and the APR on the Loan Estimate
- Lender fees and any discount points
- The monthly mortgage insurance amount
- Whether the lender has a credit score overlay above the program minimum
A preapproval is a good first step, because it surfaces credit problems early. Learn the difference in our guide to prequalification vs preapproval. If you go conventional with less than 20% down, also read when you can remove PMI, since PMI can be canceled later while most FHA premiums cannot.
What to do next
A 620 score can get you into a home, but a little preparation can make that home cheaper to own. Use the steps below to move from “can I?” to a clear, practical plan you can start acting on this month.
- Pull your free reports from all three bureaus and dispute any errors in writing.
- Pay down card balances, then ask lenders whether a slightly higher score would change your rate tier.
- Get preapproved with at least three lenders within 45 days, including at least one FHA quote.
- Compare Loan Estimates line by line: rate, APR, fees and mortgage insurance.
- Check how much cash you need for the down payment and closing, and whether local assistance can help.
Your result
Back-end DTI (all debts)37.41%
Your back-end DTI is 37.41% and your front-end DTI is 29.65%. That is above 36% but within limits many loan programs accept.
- Front-end DTI (housing only)
- 29.65%
- What your DTI means
- Within common limits (36% to 43%)
Showing an example with default numbers. Change any field to see your own result.
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More questions on this
What is the lowest credit score for an FHA loan?
HUD's floor is 500. With a score from 500 to 579, FHA limits the loan to 90% of the home's value, so you need 10% down. At 580 or higher you can get maximum financing with 3.5% down, though individual lenders may ask for more.
Can I get a conventional loan with a 620 credit score?
Often, yes. Fannie Mae's automated underwriting no longer uses a fixed minimum score, and its manual underwriting minimum for fixed-rate loans is 620. Lenders and mortgage insurers can still set higher cutoffs, so approval and pricing vary from lender to lender.
Which credit score do mortgage lenders actually use?
Usually your middle score. Lenders pull scores from the three bureaus; if three differ, they use the middle one, and if only two are reported, they use the lower. With two borrowers, the lower borrower's score usually drives the loan.
Will shopping with several lenders hurt my 620 score?
Not much. The CFPB says mortgage credit checks made within 45 days of the first one are recorded as a single inquiry. A small dip is usually outweighed by the money you can save by comparing offers.
Is it better to wait until my score is 640 or 680?
It depends on how close you are and how fast you can get there. If paying down a card could lift your score in one or two months, waiting may lower your rate and mortgage insurance. If it would take a year, compare that against rent paid and price changes.
Can a co-borrower with better credit help me qualify?
A co-borrower adds income, which can help your debt-to-income ratio. But lenders usually use the lowest qualifying score among all borrowers, so a co-borrower with a 760 score does not erase your 620 for pricing purposes.
Does rent history count toward a mortgage approval?
It can. FHA's handbook lets lenders submit a positive rental payment history for first-time buyers with a 620 or higher score who paid $300 or more in rent each month for the past 12 months, backed by a lease and proof of payment.
Can I get a VA loan with a 620 credit score?
Possibly. VA does not post a minimum credit score; it says you must meet VA's and your lender's standards for credit and income. Many lenders set their own floor, so ask each one directly.
Sources
We link only to official and primary sources. “Checked” is the date we last confirmed each page.
- B3-5.1-01, General Requirements for Credit Scores (opens in a new tab)Fannie Mae Selling Guide · Checked
- FHA Single Family Housing Policy Handbook 4000.1 (Update 18) (opens in a new tab)U.S. Department of Housing and Urban Development · Checked
- Mortgagee Letter 2023-05: Reduction of Annual Mortgage Insurance Premium Rates (opens in a new tab)U.S. Department of Housing and Urban Development · Checked
- VA purchase loan (opens in a new tab)U.S. Department of Veterans Affairs · Checked
- What is a credit score? (opens in a new tab)Consumer Financial Protection Bureau · Checked
- What exactly happens when a mortgage lender checks my credit? (opens in a new tab)Consumer Financial Protection Bureau · Checked
- Explore interest rates (opens in a new tab)Consumer Financial Protection Bureau · Checked
- How do I get a free copy of my credit reports? (opens in a new tab)Consumer Financial Protection Bureau · Checked
- Primary Mortgage Market Survey (opens in a new tab)Freddie Mac · Checked
How we wrote this answer
Researched and written by the Mortgage Advice Daily Editorial Team, checked against the sources listed above, and reviewed on October 18, 2026. We are not a lender and we are not paid by lenders.
This answer is general education, not financial, tax or legal advice. Rules, rates and program limits change, and your lender’s requirements may be stricter. For free one-on-one help, talk to a HUD-approved housing counselor.
