Start My Answer

What is a Good Credit Score to Buy a House in 2023

Dena Standley | June 09, 2023

Edited by Hannah Locklear

Summary: Consumers feel the pinch of a hot real estate market and climbing interest rates in 2023. Those relying on conventional mortgage loans can qualify with a credit score of 620. Securing a mortgage and reasonable interest rates takes more than the minimum qualifying credit score. Let’s explore.

When securing a mortgage, lenders are bound by specific rules when it comes to credit scores and other factors. There are a variety of loan types, but the two most common types of mortgage loans are conventional and FHA. Conventional loans typically require a 620 minimum credit score. If your score is lower than 620, you may not qualify for a loan or be forced to pay a larger down payment on top of paying a high-interest rate on the loan.

The Federal Housing Administration (FHA) provides mortgages for home buyers that are backed by the government and often provide a path to homeownership with credit scores as low as 580 and looser debt-to-income ratios.

Let’s explore the difference between FHA and conventional loans and discuss the optimum credit score for getting a mortgage for your dream home.

Sued for debt? Settle your debt for good with the help of SoloSettle.

Settle with SoloSettle

Make an Offer

Conventional mortgage loans

The government does not secure conventional loans; therefore, conventional mortgage loans usually have more stringent qualification criteria. A credit score of 740 and a good debt-to-income ratio will secure you the most favorable terms offered by a lender.

Most conventional home loans conform to the requirements and limits set by the Federal Housing Finance Agency (FHFA), which follows the down payment minimum and credit score requirements of Fannie Mae and Freddie Mac. Along with a good credit score, the following items also help ensure you can get the best mortgage for your needs:

  • A down payment of at least 5% of the total cost of the house. Lenders want to know that you are invested in the property, and a higher down payment can help ensure the best terms.
  • A debt-to-income ratio below 43% is usually required. To determine your debt-to-income ratio, calculate your net monthly income and then determine what percentage of that income you use to satisfy payments on debt. Ideally, that number should be below 36%. Learn more from SoloSuit about how debt can impact your ability to buy a house.
  • You will need proof of stable income. Some lenders prefer to see that you’ve worked in the same industry for at least 18 months.
  • Lenders also want to see that you have adequate income to afford the mortgage you are pursuing.

If you are struggling with debt, SoloSuit can help you learn how to handle debt and improve your credit.

FHA makes mortgage loans more accessible

The FHA insures mortgage loans, allowing lenders to offer loans to those with lower credit scores, and often requires smaller down payments and lower closing costs. The FHA also provides mortgage loans on manufactured housing and mobile homes which are sometimes difficult to finance with a conventional loan.

If you have a credit score of 580 or higher, you can often get an FHA loan with as little as a 3.5% down payment. For credit scores from 500-579, most FHA loans will require at least 10% down. However, there is a downside to FHA loans.

FHA loans require that all borrowers buy private mortgage insurance (PMI), which can result in significant up-front fees at the time of closing, as well as a monthly premium added to your mortgage. PMI is a tool to protect the lender’s interest and does not protect you from foreclosure if you fall behind on mortgage payments.

FHA loans have established loan limits depending on where the property is located. This limit can make it hard to find a home in your price range in some markets across the country. Visit the FHA search tool to learn the maximum mortgage amount for your area.

The FHA also lacks diversity in the type of loans offered. Typically, buyers qualify for a standard 15-year or 30-year fixed-rate mortgage. While this may suit your needs, some circumstances require more flexible mortgage options.

You may qualify for other common mortgage loans

The Department of Veterans Affairs offers VA loans for those who’ve served in the military and National Guard and meet the service requirements. VA loans help veterans purchase homes with low down payments and are also a good option for those who may not meet the requirements for a conventional loan. There is no official minimum limit for a VA loan, but most lenders who offer these loans prefer to work with those that have at least a 620 credit score.

As with an FHA loan, VA loans come with PMI requirements that can add substantial costs to the overall price you pay for a home.

There are other types of mortgages available, such as adjustable-rate mortgages and jumbo loans. Do your research carefully before applying for any mortgage to ensure you understand the fine print and the pros and cons. It’s easy to get carried away when house–fever hits, but a mortgage is likely one of the largest purchases you will ever make. Educate yourself, and allow SoloSuit to help you understand and maintain your overall financial health.

Struggling with debt? SoloSuit can help

Perhaps you’ve fallen behind on your mortgage payments, and the bills keep on stacking up. If you find yourself struggling to balance all your debts, SoloSuit can help you fight off debt collectors, win your debt lawsuit, and settle your debt for good.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

We have answers

Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.

Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.

Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started