What Credit Score Do First-Time Buyers Need for a Mortgage?

If you’re a first-time homebuyer, this is probably one of the first questions you’ve asked, or at least one of the most stressful. The short answer is that there isn’t one single credit score that magically unlocks homeownership. 

There’s No Single Credit Score That Qualifies Every Buyer

Different loan programs have different requirements, and many buyers qualify sooner than they expect. Let’s break it down in a way that actually makes sense: 

Credit Score Requirements Vary by Loan Program

Most mortgage programs start considering buyers with credit scores in the low 600s, and some programs allow even lower scores with the right overall financial picture. 

Conventional loans typically look for higher scores, while government-backed options are often more flexible. What matters most is not just the number, but how your credit profile looks as a whole, your payment history, current debts, and how consistently you manage credit.

How Credit Scores Influence Loan Costs and Monthly Payments

One thing first-time buyers often don’t realize is that your credit score affects more than just approval. It can also influence your interest rate and monthly payment. In general, higher scores give you access to better pricing, while lower scores may still be approved but often come with higher costs. 

That doesn’t mean you need perfect credit to buy a home; it just means there’s value in understanding where you stand.

Small Credit Changes Can Make a Big Difference

If your score isn’t where you want it to be, that doesn’t mean you’re out of options. In many cases, small changes can lead to meaningful improvements in a relatively short amount of time. 

Paying down credit card balances is one of the fastest ways to help your score, especially if your cards are close to their limits. Even bringing balances below 30% of the limit can make a difference. 

Making every payment on time, even the minimum, is also critical. One late payment can hurt more than most people expect.

Why Consistency Matters More Than a ‘Perfect’ Credit Cleanup

Another common misconception is that you should close old accounts or avoid using credit altogether before applying for a mortgage. Keeping older accounts open and using them lightly can help your credit history. Consistency is more important than perfection.
It’s also important to avoid major financial changes while you’re preparing to buy. Opening new credit cards, financing a car, or making large purchases can lower your score or increase your debt in ways that impact approval. 

If you’re thinking about buying soon, hitting pause on new credit is usually a smart move.

One of the best things a first-time buyer can do is talk to a lender early, even before you start house hunting. A lender can review your credit, explain what loan options fit your situation, and give you clear guidance on what to improve, if anything. 

This isn’t a commitment to buy right away. It’s a way to create a plan so there are fewer surprises later.

Your Credit Score Is a Starting Point, Not a Verdict

At the end of the day, your credit score is a tool, not a verdict. It helps determine your options, but it doesn’t define whether homeownership is possible. Many first-time buyers qualify with less-than-perfect credit, especially when they take a little time to prepare and work with the right lender. 

If buying a home is your goal, understanding your credit is simply the first step, and it’s one you don’t have to take alone.

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At Gershman Mortgage, communities, families, and homes are at the heart of what we do. Built on the core values of honesty, integrity, entrepreneurial spirit, and customer-first service, we’re committed to providing an exceptional homebuying experience. Our goal is simple: to exceed expectations and build lifelong relationships.

NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender. Serving borrowers in: Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin

Written by Kaylee Larson for Gershman Mortgage