One of the most common worries I hear from people who are thinking about buying a home is:
“My credit isn’t perfect—can I still qualify for a mortgage?”
It’s an honest concern, and for a lot of families, it’s the one thing keeping them from even starting the conversation about homeownership. Maybe you had a late payment years ago. Maybe your credit history is thin because you haven’t used much credit in the past. Or maybe your score just isn’t where you’d like it to be.
Here’s the good news: You don’t need a perfect credit score to buy a home. Far from it.
Let’s talk through how credit scores actually work in the mortgage world. Because the truth is, whether your score is in the 700s, the 600s, or even the 500s, there are loan programs that can help you buy a home.
Why Credit Scores Matter in the First Place
When a lender looks at your mortgage application, your credit score is one of the biggest pieces of the puzzle. It’s essentially a snapshot of how you’ve handled debt in the past. A higher score tells lenders you’ve been reliable with credit; a lower score signals more risk.
That’s why your score influences a few things:
- What types of loans you qualify for
- What kind of interest rate you’ll get
- Whether you’ll need additional documentation or compensating factors
But here’s the key point: A lower score doesn’t automatically disqualify you. It just shapes which loan programs are the best fit.
What Scores You Actually Need
This surprises a lot of buyers:
- For a conventional loan, you only need a 620 credit score to qualify.
- For an FHA loan, you can technically qualify with a score as low as 500—though in practice, most lenders look for at least 580.
- For VA loans (for veterans and active-duty military), the VA doesn’t set a minimum, but most lenders prefer around 580–620.
- For USDA loans, the preferred minimum is usually around 640, but there are exceptions.
So while higher credit scores will give you better interest rates and terms, the idea that you need to be in the high 700s or 800s to buy a home is a complete myth.
What If You Don’t Have Any Credit History?
This is another concern I hear a lot:
“I’ve never had a credit card or loan—does that mean I can’t qualify?”
Not at all. If you don’t have a traditional credit history, there are still ways to establish your ability to repay. For example, lenders can look at things like:
- Rent payment history
- Utility bills
- Car insurance payments
- Cell phone bills
These are called non-traditional credit lines, and they can be used to help demonstrate reliability. I’ve helped plenty of buyers with little or no credit history get approved for conventional or FHA loans.
How Your Score Impacts Your Rate
Here’s where your score does make a difference: Your interest rate.
A borrower with a 760 score is going to get a lower rate than someone with a 620 score. That’s just how the system works. But that doesn’t mean the 620 borrower is out of luck—it just means their monthly payment might be a little higher.
And here’s the thing: once you own the home, you can improve your credit and refinance later into a better rate. Many buyers choose this path—buy now, build equity, work on their credit, and then refinance once their financial picture has improved.
Quick Wins to Boost Your Credit Before Buying
If you’re close to qualifying—or if you just want to position yourself for the best rate possible—there are some relatively quick ways to give your score a bump:
- Pay down credit card balances. Keeping balances low compared to your limits can have a big impact.
- Avoid opening new lines of credit right before applying. New accounts can ding your score temporarily.
- Make all payments on time. Even one late payment can hurt, so set up autopay if needed.
- Dispute errors on your report. You’d be surprised how often credit reports have mistakes.
- Don’t close old accounts. Length of credit history matters—closing accounts can shorten your profile.
Sometimes, even small changes can move the needle enough to qualify for a better program. I often review credit reports with my clients and suggest targeted steps—so you’re not just guessing what will help.
The Cost of Waiting for the “Perfect” Score
Just like the 20% down myth, waiting for a “perfect” credit score can backfire.
Here’s why:
- Home prices may rise. Even if your score improves, the home you want could cost more later.
- Rates may go up. A slightly higher score won’t help if rates rise by half a percent.
- You lose out on equity. Every month you’re renting is a month you’re not building wealth through homeownership.
Sometimes the smarter move is to buy now with the score you have, then refinance later once your credit is stronger.
How I Help Clients with Credit Concerns
I never want someone to feel like their credit score disqualifies them from the dream of homeownership. That’s why I take the time to:
- Review your credit report with you (line by line, if needed)
- Identify what loan programs you’re eligible for right now
- Suggest clear, actionable steps to improve your score if you’re just shy of qualifying
- Connect you with down payment assistance programs that can offset upfront costs
In other words, I don’t just tell you “yes” or “no.” I walk you through the path to “yes.”
The Bottom Line
Your credit score matters—but it’s not the dealbreaker most people think it is. What you should remember:
- Conventional loans start at 620.
- FHA loans can go down to 500 (with most lenders looking for 580).
- VA and USDA loans have flexible requirements.
Even if you don’t have traditional credit, there are still options.
You don’t need perfect credit. You don’t need to wait years. And you definitely don’t need to let a three-digit number hold you back from buying a home.
Let’s Talk About Your Credit Goals
If credit is the only thing stopping you from exploring homeownership, let’s talk. I’ll walk you through your options, give you honest feedback, and show you the real numbers for your situation. Contact me to learn more.
I’m not a 9-to-5 loan officer—I’m here mornings, evenings, weekends, whenever you need me. My job is to make sure you feel confident and supported, whether you’re ready today or a year from now.
Because the truth is simple: You don’t need perfect credit to buy a home—you just need the right plan.