Your credit score is a critical factor in the homebuying journey. It helps lenders decide which loan options you qualify for and the terms you might receive. However, there’s a common myth about credit scores that could discourage potential buyers from pursuing their dream of homeownership.
The Myth: You Need Perfect Credit
A surprising number of prospective buyers misunderstand credit requirements. According to Fannie Mae, only 32% of buyers have a clear idea of the credit score lenders typically expect. This means nearly two-thirds of buyers overestimate the minimum score needed to secure a mortgage.

The Reality: Perfect Credit Isn’t a Must
The truth is, you don’t need a flawless credit score to buy a home. Different lenders have varying criteria, and there’s no universal cut-off score. As FICO explains:
"Each lender has its own strategy, including the level of risk it finds acceptable. There is no single 'cutoff score' used by all lenders, and there are many additional factors that lenders may consider . . ."
This means even if your credit score isn’t as high as you’d like, you might still qualify for a home loan. However, it’s important to note that your score can influence your loan options and terms.
To better understand what you qualify for, connect with a trusted lender who can guide you through the process.
Simple Steps To Improve Your Credit Score
If you’d like to enhance your credit score and potentially unlock better loan options, here are some practical tips from Experian and Freddie Mac:
- Pay Bills on Time
Consistently paying your credit card bills, utilities, and other obligations on time demonstrates reliability to lenders. - Reduce Outstanding Debt
Lowering your debt improves your credit utilization ratio (the percentage of available credit you’re using) and makes you a more attractive borrower. - Avoid Applying for New Credit
Applying for multiple new credit accounts in a short period can temporarily lower your score. Focus on managing your existing accounts instead.
Bottom Line
You don’t need a perfect credit score to buy a home. The best way to find out where you stand is by working with a knowledgeable lender who can help you explore your options. Start your journey to homeownership today!