Fixing your credit to buy a house in the United States
It is the request we hear most: "I want to buy a house, but my credit will not let me." This page shows exactly what the lender looks at, what blocks it, and what to fix first.
To finance a home in the U.S., lenders look at four things: score, recent history, documentable income and cash for down payment and closing costs. FHA accepts scores from 580 with 3.5% down (500 to 579 requires 10%), and conventional usually starts at 620 — but any lender can require more than the program minimum. A report error can knock out any of those four pillars, which is why the analysis comes before pre-approval.
Minimum score by loan type
These are program floors. The lender putting up the money may be stricter — that is called an overlay, and it is why two people with the same score get different answers.
| Program | Score usually accepted | Minimum down | Note |
|---|---|---|---|
| FHA | 580 | 3.5% | Federal program designed for credit still being built |
| FHA (low range) | 500 to 579 | 10% | Allowed by rule, but few lenders operate there |
| Conventional | 620 | 3% to 5% | Below 680 the rate and insurance get notably more expensive |
| Conventional (best pricing) | 740+ | 3% to 20% | Where the cost of money really drops |
| VA | No federal minimum | 0% | For service members and veterans; lender sets its own floor |
| USDA | 640 in practice | 0% | Eligible rural areas only, with income limits |
Market references for 2026. Always confirm with the lender reviewing your file: programs and policies change.
What blocks approval most (in the order we find it)
In nearly every diagnosis we run, the problem is one of these six.
A collection that is not yours
Similar name, old address, a relative's debt or identity theft. It is the most common item and the most disputable, because the burden of verification is on the furnisher.
Wrong balance or date
A debt you paid still showing a balance, or a late payment dated differently from your statement. The debt can be real and the data still be wrong.
Maxed-out card
Using most of your limit drags the score down even when you pay on time. Often, lowering utilization moves the needle more than any dispute.
History too short
Newcomers typically have 6 months of credit and no usable score. There is nothing to dispute here: there is something to build.
Unauthorized credit inquiry
An inquiry made without a permissible purpose can be disputed. Legitimate recent inquiries, in volume, also worry underwriters.
Income that is hard to document
Cash earners, gig workers and the self-employed need organized paperwork. Credit can be fine and approval still stall here.
The plan we build for home buyers
Timelines vary with what is on the report, but the order of stages is almost always this.
Diagnosis and stopping what is wrong
Three reports, inventory and disputes filed on solid grounds. In parallel, we map the income a lender will accept.
Responses and first adjustments
Reading bureau responses, a second round where there is new information, and lowering utilization — the fastest lever there is.
Building history
Secured card, a new account where it makes sense, and payment discipline. This part has no shortcut: it is time.
Pre-approval with a lender
You enter the lender conversation with an accurate report and paperwork ready. If you want, we introduce licensed professionals who already work with Buldora.
Two details almost nobody explains
1. The app score is not the mortgage score
The number in your card app is usually a general-purpose model built for monitoring. Mortgage lending uses reports from all three bureaus at once (the tri-merge) with mortgage-specific scoring models. The gap between the two numbers is frequently more than 30 points, almost always downward.
In 2025 and 2026 the industry began accepting additional score models on loans backed by Fannie Mae and Freddie Mac, while keeping the three-bureau report requirement. It is a rule in transition — which is why the only reliable answer about "which score counts" comes from the lender reviewing your file.
2. Removing it from the report does not erase the debt
If a collection comes off the report, the financial obligation may still exist. The reverse is also true: a paid debt may keep showing a balance, and that is a real error worth correcting. These are two different tracks, and mixing them is the most expensive mistake we see.
Questions about credit to buy a house
What is the minimum credit score to buy a house in the U.S.?
FHA accepts from 580 with 3.5% down and 500 to 579 with 10% down. Conventional usually starts at 620. In practice many lenders require 620 even for FHA. Above 740 pricing improves considerably.
Can I buy a house with collections on my report?
In many cases yes, especially with FHA. What matters is the whole picture: the amount, how recent it is, whether the rest of your history is current, and your debt-to-income ratio. Some situations require payoff before closing.
How far ahead should I work on my credit?
3 to 12 months, depending on your starting point. Correcting one error can take a single cycle. Building history from zero cannot be shortened.
Can I buy with an ITIN, without a Social Security Number?
There are ITIN-specific programs, usually with a larger down payment and a higher rate, offered by lenders who work that profile. It is not the traditional FHA path. We assess case by case and tell you the truth about the cost.
Is it worth paying an old debt to raise my score?
Not always, and this is one of the trickiest questions. Paying may be required for the loan even if the score does not move, and in some cases it restarts the clock on an old collection. It is a decision that requires checking the date and the loan program first.
Do you sell the house too?
Buldora Investments works with Florida real estate, but the services are independent. You do not need to buy with us to be served on credit.
Find out how far your credit is from holding a mortgage
Free diagnosis of all three reports, with a written report and the exact order of what to fix first.
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