What FICO Score is Needed to Buy a House Today?

Reader Question: "I want to buy a house next year, and was wondering what FICO score is needed to get a loan. Is there a certain number I need to have, or does it just depend on the situation and the lender?"

These are all good questions, and I promise to answer them as best I can. But first, I want to provide some basic definitions for people who are unfamiliar with this subject. Let's talk about what a FICO score is in the first place, and then we'll discuss what score is needed to get a mortgage loan these days.

The FICO Score Defined

FICO is an acronym for Fair Isaac Corporation. This is the company that developed the scoring model used by most mortgage lenders. There are actually many different types of scores and scoring systems, but the FICO credit score is the most common and widely used of all of them. The range goes from 300 to 850. Higher is better. So when you hear somebody talk about having "good credit," they are talking about a high number.

Lenders and creditors will use your FICO score to determine your "creditworthiness" -- or in other words, the level of risk posed by lending you money. And that's brings us up to the question you asked.

What Score is Needed to get a Mortgage?

When it comes to buying a home and getting a mortgage loan, there are two "cutoff" points for your FICO score "cutoff" points. The exact number will vary from one lender to the next. But before we talk numbers, you need to understand what these two levels are.

1. You will need a certain FICO score just to get approved for a home loan. In other words, you need to meet a certain criteria just to get your foot in the door. This minimum cutoff point will vary from one mortgage company to the next, but it's safe to say that a FICO score of 650 or above will open a lot of doors for you.
2. If you want to qualify for the best interest rates on a home loan, you will need an even higher number. Once again, this varies based on many factors. In the current economy, I would say that a FICO credit score of 760 or above is needed to get the lowest / best rates a lender has to offer.

Keep in mind there are other factors that will determine whether or not you get approved, and what kind of interest rate you get. The size of your down payment also plays a role, as does the size of the loan.

You asked what FICO score is needed to buy a house these days. I've provided some general ranges for you above, but these numbers are certainly not set in stone. These are just the scores most often cited by lenders. If you really want to know if you can get a mortgage, the best thing to do is apply for one. That's the only way you'll know for certain.

Where to Learn More

Here are some related articles on this subject. This might give you a more well-rounded view of the credit industry in general, and the types of qualifications you need to get a home loan these days. If you plan to buy a house in the near future, these articles are worth a read:

• Credit Score Needed to Buy a House in 2009
• Minimum Score is Needed to Get a Mortgage Loan

I hope this answers your question about FICO ranges and home loans, and I wish you all the best in your home-buying process. If you have additional questions on this topic, try using the search box at the top of this website. There are hundreds of articles and Q&A sessions on this blog, and you can find even more on our main website.

Disclaimer: This website provides general information for a wide audience. We do not provide specific financial advice, nor should you treat it as such. This article explains the basic FICO score that might be needed to qualify for a loan and buy a house in today's economy. It provides general score ranges only. These numbers are not set in stone, and they vary from one mortgage lender to another.