What credit score do I need to buy a home?

by Lisa Mehlhoff

What Kind of Credit Score Do I Need to Buy a Home?

If you’re thinking about buying a home in Portland, one of the first questions that comes up is: What credit score do I need to qualify for a mortgage? The answer isn’t one-size-fits-all, but knowing where you stand can help you prepare for success.

The Minimum Scores for Different Loan Types

FHA Loans: Backed by the Federal Housing Administration, these are designed for first-time buyers. You can qualify with a score as low as 580 with just 3.5% down. In some cases, lenders may accept scores down to 500 if you put 10% down.
Conventional Loans: These are the most common loans and typically require at least a 620 credit score. The higher your score, the more favorable your interest rate and terms.
VA Loans: For veterans and active service members, VA loans don’t technically have a minimum credit score, but most lenders look for 620 or higher.
USDA Loans: Designed for rural areas, many lenders require at least a 640 credit score.

Why Your Credit Score Matters

Your credit score influences:

Your Interest Rate: Even a small difference in rate can save (or cost) you thousands over the life of your loan.
Loan Approval: A higher score gives you more loan options and smoother underwriting.
Buying Power: Better credit can mean lower monthly payments, freeing up room in your budget for the right Portland neighborhood.

So What? Why This Matters for You

If your score isn’t quite where it needs to be, don’t worry—there are clear steps you can take to improve it before buying. Portland’s competitive housing market rewards buyers who are financially ready, and your credit score is a big piece of that puzzle.

Tips to Boost Your Credit Before Buying

Pay down credit card balances below 30% of your limit
Avoid taking out new debt before applying for a mortgage
Make payments on time, every time
Review your credit report for errors and dispute them

Bottom Line

To buy a home in Portland, you’ll generally want a 620 or higher credit score, but the exact number depends on your loan type. More importantly, a stronger score opens the door to better rates, more options, and less stress when buying your dream home.

If you’re unsure where your credit stands—or want a step-by-step plan to boost it—let’s connect. As Lisa Mehlhoff Homes, Portland Realtor, I guide buyers through every part of the process so you’re confident, prepared, and positioned to succeed.