What Credit Score Do You Need to Buy a House in 2027?
It depends on the loan. FHA accepts 580 with 3.5% down and 500 with 10% down. VA sets no minimum, and since November 16, 2025, Fannie Mae's Desktop Underwriter no longer requires a 620, so on those loans your lender sets the floor. A higher score mainly lowers your cost: on a conventional purchase with 20% down, Fannie Mae's credit-score fee runs from 0.375% of the loan at 780+ to 2.75% at 639 or below (matrix dated September 30, 2026). Here is what each program requires heading into 2027 and how to reach a better tier.
Key takeaways at a glance
- FHA: 580 for 3.5% down, 500 for 10% down.
- VA: no VA minimum; the lender sets one.
- Conventional: no fixed minimum in Fannie Mae's DU since Nov. 16, 2025; 620 for manual underwriting.
- 780+ gets Fannie Mae's lowest credit fee.
- Lenders can now pull VantageScore 4.0 or Classic FICO; FHA adds VantageScore 4.0 and FICO 10T on Jan. 1, 2027.
| Loan Type | Program Minimum | What Else Applies |
|---|---|---|
| FHA (3.5% down) | 580 | Maximum financing (96.5% LTV); lender may require more |
| FHA (10% down) | 500 | Scores 500–579 capped at 90% LTV; below 500 ineligible |
| VA | None set by VA | Each lender sets its own floor |
| Conventional (Fannie Mae DU) | None since Nov. 16, 2025 | DU risk assessment decides; lenders and mortgage insurers can set floors |
| Conventional (manual underwriting) | 620 fixed / 640 ARM | Plus LTV and DTI limits in Fannie Mae's Eligibility Matrix |
| USDA Guaranteed | 640 for standard review | Below 640: cautious, detailed manual review |
| Jumbo (over $832,750 in 2026) | No program minimum | Set by each lender or investor |
In this guide
Minimum credit scores by loan type
- FHA: HUD uses the lowest qualifying score among all borrowers. At 580+ you can finance up to 96.5%; at 500–579 the cap is 90% LTV; below 500 FHA is out. Those thresholds carry into 2027 under HUD Mortgagee Letter 2026-11. See our FHA loan guide.
- VA: no VA minimum, though the lender may set one. VA reports its average purchase-loan applicant scored 721 in 2023. See our VA loan guide.
- Conventional: Desktop Underwriter now weighs the whole file instead of a score cutoff. Manual underwriting still needs 620 (fixed) or 640 (ARM).
- USDA: 640+ meets USDA's minimum credit reputation absent red flags such as a foreclosure or Chapter 7 discharge in the past three years; below 640 gets a cautious manual review. See our USDA loan guide.
- Jumbo: above the 2026 conforming limit of $832,750 (one unit, every Hampton Roads locality), each lender sets the score. FHFA usually announces the 2027 limit in late November. Read how jumbo loans work.
How credit score affects your cost
On conventional loans, the clearest price signal is Fannie Mae's loan-level price adjustment (LLPA), a one-time fee set by score and loan-to-value that lenders usually pass on as a higher rate or points. Freddie Mac charges a similar credit fee.
At the Virginia Beach median sold price of $442,500 (VaHome analysis of REIN MLS data, September 2026), 20% down leaves a $354,000 loan. The fee is about $1,328 at 780+ and about $9,735 at 639 or below, roughly $8,400 more for the same house. Below 20% down, private mortgage insurance is also priced partly on score. See the Virginia Beach market report for current prices.
Fannie Mae waives LLPAs on HomeReady loans and for first-time buyers earning up to 100% of area median income. FHA's annual mortgage insurance premium depends on loan amount, LTV and term, not score.
What "lender overlays" actually mean
An overlay is a lender's own rule on top of the program's. VA says it directly: "the lender may set a credit score limit." FHA and Fannie Mae work the same way, and the investor buying the loan or the mortgage insurer can add requirements too. With Fannie Mae's DU floor gone, the program rule and a lender's rule can be far apart. If one lender says no, ask what score it needs and try two others; our list of Hampton Roads mortgage lenders is a starting point.
How to improve your score before applying
Our credit-building guide and 8 steps to boost your score cover the full playbook. The highest-impact moves:
- Pull all three reports at AnnualCreditReport.com (free weekly from each bureau) and dispute errors early; the bureau has 30 days to investigate.
- Pay card balances down before the statement date, since that balance is usually the one reported.
- Skip new cards and car or furniture financing; the CFPB warns new credit can lower your score and raise your rate.
- Keep old accounts open and every payment on time.
Which credit score lenders use in 2027
The score in your banking app may not be the one your lender pulls. For Fannie Mae and Freddie Mac loans, lenders choose Classic FICO or VantageScore 4.0 loan by loan, with one model for all borrowers on the loan:
- July 8, 2025: FHFA announced lenders could use either model, keeping the three-bureau report.
- Sept. 9, 2026: VantageScore 4.0 opened to all approved lenders; Sept. 30, 2026 aligned the upfront fees for both models.
- Jan. 1, 2027: FHA accepts VantageScore 4.0 and FICO 10T alongside Classic FICO for new case numbers, with the same 500 and 580 thresholds.
FICO 10T is approved for Fannie Mae and Freddie Mac but not yet deliverable. HUD notes the newer models use trended data and can factor in rent and utility payments. Ask your loan officer which model they use.
Frequently Asked Questions
What is the minimum credit score to buy a house?
FHA's hard floor is 500 with 10% down. VA and Fannie Mae's DU set no fixed minimum, so the lender's floor applies. Compare at least three lenders.
What credit score do I need for a VA loan?
VA doesn't set one; each lender does. Full VA loan guide.
What credit score do I need for an FHA loan?
580 for 3.5% down, 500 for 10% down, unchanged when new score models arrive January 1, 2027. FHA guide.
What credit score do I need for a conventional loan?
No fixed minimum through DU; 620 (fixed) or 640 (ARM) if manually underwritten. The lowest Fannie Mae fees start at 780.
Can I buy a house with a 580 credit score?
Yes, with FHA and 3.5% down if the lender accepts it, or VA if you're eligible and the lender's floor allows. Expect higher pricing than a 700+ borrower.
Will a low credit score affect my mortgage insurance?
On conventional loans, yes: PMI varies by down payment and score, per the CFPB. FHA mortgage insurance costs the same at any score.
How long before applying should I freeze my credit activity?
Avoid new credit for a few months before pre-approval and until closing. Don't close old cards, and be ready to document large non-payroll deposits.
Does my spouse's credit affect my application?
If you apply jointly, yes. FHA uses the lower score. Fannie Mae prices on the lower score but, for DU eligibility, averages each borrower's middle score (its example: 590 and 693 average 642, priced at 590). Applying alone uses one score, but only that spouse's income counts.
Have a question about your home purchase?
Talk to a Hampton Roads buyer's agent or loan officer who can walk through your specific situation - no pressure, no obligation.
Sources & further reading
- FHFA: Credit scores
- Fannie Mae Selling Guide B3-5.1-01
- Fannie Mae Selling Guide B3-5.1-02
- Fannie Mae SEL-2025-09
- Fannie Mae LLPA Matrix
- HUD Mortgagee Letter 2026-11
- VA Loan Guaranty quick reference
- USDA HB-1-3555, Chapter 10
- FHFA: 2026 conforming loan limits
- CFPB: Mortgage insurance
- FTC: Free credit reports
- VA: Loan eligibility
- myFICO: What is a credit score
- HUD: Buying a home
Rules and figures as of October 29, 2026. Always confirm current details with the relevant agency, lender, or licensed professional before relying on any specific figure or rule.
About the Author
Tom & Dariya Milan are a husband-and-wife team of licensed Virginia real estate agents serving Hampton Roads since 2005. Tom handles listing strategy, pricing and negotiation; Dariya handles buyers, contract-to-close and relocations. Their closings and reviews, pulled from the MLS, are on the About page. Brokered by LPT Realty. Call (757) 777-7577 or email tom@vahome.com.
About the Hampton Roads Real Estate Market
Hampton Roads is one of the most dynamic real estate markets on the East Coast, anchored by the largest naval complex in the world at Naval Station Norfolk and home to roughly 120,000 active-duty, reserve, and civilian Department of Defense personnel. The region spans seven cities — Virginia Beach, Norfolk, Chesapeake, Suffolk, Portsmouth, Hampton, and Newport News — plus the Peninsula communities of Williamsburg, Yorktown, and Poquoson, with each market carrying its own personality, school district, and price profile.
Buying or selling here means thinking about more than just a house. Tidewater geography means flood zones, hurricane preparation, and waterfront premiums matter. Military presence means BAH affordability, PCS season inventory crunches (May through August), and VA loan eligibility are top of mind for a meaningful share of every neighborhood. School quality varies block by block, especially across the seven independent city school divisions, and is often the deciding factor for relocating families.
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Whether you are buying your first home with a VA loan, moving up while your kids transition between school districts, or selling a Hampton Roads property to relocate to your next duty station, the resources on this site are organized around the questions you are actually asking. Browse listings filtered by base proximity, paygrade-aware BAH cap, and commute time. Read neighborhood guides for Virginia Beach, Norfolk, Chesapeake, Suffolk, Hampton, Newport News, Williamsburg, and the Peninsula communities. Use the mortgage calculator to compare conventional, FHA, VA, USDA, and jumbo loan scenarios side by side. When you are ready to talk, the contact form goes directly to a specialist who knows the area, the lenders, and the timing.