Quick answer: Most California buyers can qualify with a credit score of 620 or higher for a conventional loan and 580 for an FHA loan (sometimes 500 with more down). A higher score doesn’t just get you approved — it earns you a lower interest rate, which can save tens of thousands over the life of the loan.
Key takeaways
- Conventional loans generally start at a 620 score; FHA at 580.
- The higher your score, the lower your rate — and the lower your monthly payment.
- VA and USDA loans have no fixed minimum, but lenders set their own overlays.
- You can improve a score meaningfully in a few months by lowering balances and paying on time.
- Check your credit early so you have time to fix errors before applying.
Minimum credit scores by loan type
Each loan program sets a different floor. Here’s a general guide for 2026 (individual lenders may require higher):
| Loan type | Typical minimum score | Notes |
|---|---|---|
| Conventional | 620 | 3–5% down possible |
| FHA | 580 (3.5% down) | 500–579 needs 10% down |
| VA | No set minimum | Lenders often want 580–620 |
| Jumbo | 700+ | Common for higher Bay Area prices |
How your score affects your mortgage rate
Two buyers can get very different rates on the same home. A stronger score signals lower risk, so lenders offer better pricing. On a Bay Area-sized loan, even a small rate difference can change your payment by hundreds of dollars a month.
How to raise your score before buying
You often don’t need years — a focused few months can help:
- Pay every bill on time (payment history is the biggest factor).
- Lower your credit card balances below 30% of their limits.
- Avoid opening or closing accounts right before applying.
- Dispute any errors on your credit report.
What if my score isn’t there yet?
You still have paths forward. An FHA loan, a co-borrower, or a few months of credit cleanup can open the door. A lender can review your file and give you a concrete plan. we’re happy to connect you with trusted local lenders — Have questions? Book a free consultation and we’ll walk you through your options.
Frequently Asked Questions
What credit score do I need to buy a house in California?
Generally 620+ for a conventional loan and 580 for FHA (or 500 with 10% down). Higher scores unlock better interest rates.
Can I buy a home with a 600 credit score?
Often yes — an FHA loan allows scores as low as 580, and some lenders work with lower. Your rate will be higher than with a 720+ score.
Does checking my own credit hurt my score?
No. Checking your own credit is a ‘soft’ inquiry and does not affect your score. Only lender ‘hard’ inquiries have a small, temporary effect.
How much does credit score affect my mortgage rate?
A lot. Moving from a fair to an excellent score can lower your rate noticeably, saving hundreds per month on a Bay Area loan.
How long does it take to improve my credit score?
Many buyers see meaningful gains in 3–6 months by paying on time and lowering card balances. Serious issues can take longer.
Written by Surbhi Gupta, REALTOR® · CA DRE# 02314083 · eXp Realty of California, Inc. Serving Fremont, Union City, Newark, Hayward & Milpitas. This article is for general education, not financial advice — confirm current figures with a licensed professional.
