Three things set your buying power
Your credit score
It decides which loan programs you qualify for and the rate you’re offered. A lower rate means a lower payment, which means more house for the same budget.
Your debt-to-income ratio
Your monthly debt payments divided by your gross monthly income. Limits vary by loan program and lender, so every existing payment reduces the mortgage you can carry.
Your down payment
It lowers the amount you borrow and can affect your rate and mortgage insurance.
Credit score requirements by loan type
Minimums are only the starting line. Higher scores still earn better rates and terms.
Backed by the Federal Housing Administration. A 580 score qualifies for 3.5% down; scores from 500 to 579 need 10% down.
Since November 16, 2025, Fannie Mae no longer applies a hard 620 minimum for loans run through its Desktop Underwriter system. Approval rests on your whole profile, and individual lenders may still set their own minimums.
For eligible service members and veterans. The VA doesn’t set a minimum score; lenders set their own.
See what your score means for your rate: the CFPB’s free Explore Interest Rates tool shows typical mortgage rates by credit score, state and down payment.
Estimate your price range
A quick starting point using the traditional 28/36 guideline: housing costs up to 28% of gross income, and all debts up to 36%. Lenders may approve more or less.
Estimate only, based on a 30-year fixed loan. It excludes mortgage insurance, HOA dues and closing costs. Get a Loan Estimate from a lender for real numbers.
Boost your buying power before you apply
- Pay revolving balances down before you apply. Lower utilization can lift your score and lowers your debt-to-income ratio at the same time.
- Hold off on new credit. Avoid opening cards or financing a car in the months before a mortgage application.
- Check all three reports for errors. Mortgage lenders typically review all three bureaus, so an error on one still counts.
- Save for the down payment and closing costs. More down means a smaller loan, a lower payment and possibly less mortgage insurance.
- Compare at least three lenders. Rates and fees vary. Compare the Loan Estimates side by side.
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Last reviewed: Next scheduled review: January 2027