Jon Tennant
Broker · Raleigh-Durham
Hey friends. Credit score is one of the most misunderstood parts of the home buying process. Buyers either think their score is too low to qualify, or they assume any score above 700 is plenty without realizing how much a few points can affect their rate. Here is what you actually need to know in 2026.
There is no single answer to "what credit score do I need" because it depends on which type of loan you are using. Here is the breakdown:
Conventional loan
620 minimum for most lenders, though some require 640. A score of 740 or above puts you in the tier for the most competitive rates and lowest fees.
FHA loan
580 minimum for the 3.5% down payment option. Scores between 500 and 579 may still qualify but require 10% down. Some NC lenders set their own floor at 620 or 640 even for FHA loans.
VA loan
The VA does not set a minimum score. Most Triangle lenders require 620 to 670 in practice for VA purchase loans.
USDA loan
No official minimum from USDA, but most lenders want 640 or above for streamlined processing. Lower scores may be considered through manual underwriting with a more detailed file review.
NC Housing Finance Agency (NCHFA) down payment assistance programs
Minimum 640 for most programs, 660 for manufactured homes.
Meeting the minimum gets you in the door. It does not get you the best deal.
Mortgage rates are tiered by credit score. On a conventional loan, the difference between a 680 score and a 760 score can be 0.5% to 0.75% or more in interest rate. On a $400,000 loan that spread translates to roughly $110 to $175 more per month, and over $40,000 to $60,000 more in interest over the life of the loan.
The tiers that matter most on conventional loans are generally: below 620 (may not qualify), 620 to 639, 640 to 659, 660 to 679, 680 to 699, 700 to 719, 720 to 739, 740 and above. Every tier up improves your rate. The biggest jumps are usually at 680 and 740.
Payment history (35%)
Whether you pay bills on time. This is the biggest factor. One 30-day late payment can drop your score significantly.
Amounts owed (30%)
How much of your available credit you are using. Keeping balances below 30% of your limit (ideally below 10%) helps. Paying balances down before applying is one of the fastest ways to improve your score.
Length of credit history (15%)
How long your accounts have been open. Older accounts help. Closing old accounts can hurt.
Credit mix (10%)
Having a variety of credit types (credit cards, auto loans, student loans) helps modestly.
New credit (10%)
Opening new accounts shortly before applying for a mortgage can temporarily lower your score. Do not apply for new credit cards, car loans, or financing of any kind in the months before you plan to buy.
If you are 60 to 90 days from wanting to make an offer, focus on what moves fast: pay down balances and fix errors. If you are six to twelve months out, you have more room to build a stronger profile.
A lot of buyers talk themselves out of buying because they assume their credit will not qualify. A lender can pull a soft inquiry pre-qualification that does not affect your score and give you a real picture of where you stand. Do that before you assume.
If your score is lower than you want it to be, a good lender can also give you a specific action plan for what to do and how long it will take. That is a free conversation worth having.
Reach out if you want me to connect you with a lender who does this well in the Triangle.
Want me to connect you with a Triangle lender who can pull a soft inquiry pre-qualification and build you a specific credit action plan? No pressure — just information.
The questions I hear most from Triangle buyers about credit scores.