What Credit Score Do I Need to Buy a House in NC?
By Jason Iacovelli, NMLS #3370 | Updated December 2025
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What credit score do I need to buy a house in North Carolina?
FHA: 580+ with 3.5% down, or 500-579 with 10% down, subject to approval. Conventional: No blanket 620 minimum. Credit eligibility depends on automated underwriting findings, with final approval subject to lender review. VA options are available with no fixed minimum credit score, including for borrowers with no credit score. Approval depends on the full application and lender review. USDA: Jason’s available lenders require a minimum score of 640. Some jumbo programs accept credit scores as low as 600, subject to lender and program requirements. A score of 740+ qualifies for the best interest rates. A 100-point difference in credit score can change your rate by 0.5-1.0%, potentially saving or costing tens of thousands over the loan term.
Key Takeaways
- FHA: 580+ with 3.5% down, or 500-579 with 10% down, subject to approval. Conventional: No blanket 620 minimum. Credit eligibility depends on automated underwriting findings, with final approval subject to lender review. VA options are available with no fixed minimum credit score, including for borrowers with no credit score. Approval depends on the full application and lender review. USDA: Jason’s available lenders require a minimum score of 640. Some jumbo programs accept credit scores as low as 600, subject to lender and program requirements.
- 740+ credit score qualifies for the best interest rates
- A 100-point score difference can change rates by 0.5-1.0%
- Credit improvements possible in 30-60 days by paying down balances
- Multiple mortgage inquiries within 45 days count as one inquiry
FHA: 580+ with 3.5% down, or 500-579 with 10% down, subject to approval. Conventional: No blanket 620 minimum. Credit eligibility depends on automated underwriting findings, with final approval subject to lender review. VA options are available with no fixed minimum credit score, including for borrowers with no credit score. Approval depends on the full application and lender review. USDA: Jason’s available lenders require a minimum score of 640. Some jumbo programs accept credit scores as low as 600, subject to lender and program requirements. Your credit score is one of the most important factors in mortgage approval and directly impacts the interest rate you'll receive. Veterans in Raleigh can qualify for VA loans with no fixed minimum score, including no-score borrowers, subject to lender review, while buyers in Cary seeking conventional loans have credit eligibility based on automated underwriting findings, subject to final lender review.
Minimum Credit Scores by Loan Type
VA Loans - No Fixed Minimum Score
VA options are available with no fixed minimum credit score, including for borrowers with no credit score. Approval depends on the full application and lender review.
- 0% down payment required
- No PMI regardless of down payment
- Competitive interest rates
FHA Loans - 580 Minimum (3.5% Down)
FHA loans are designed for first-time buyers and those with lower credit scores.
- 580+ score: 3.5% down payment
- 500-579 score: 10% down payment required
- Mortgage insurance required
Conventional Loans - Automated Underwriting Review
Most common loan type with competitive rates for qualified buyers.
- No blanket 620 minimum. Credit eligibility depends on automated underwriting findings, with final approval subject to lender review. A score of 740+ gets best rates
- 3-5% down payment options
- PMI cancellation can be requested when eligibility requirements are met
How Credit Scores Affect Interest Rates
| Credit Score | Interest Rate | Monthly Payment |
|---|---|---|
| 760-850 | 6.75% | $2,595 |
| 700-759 | 6.97% | $2,652 |
| 660-679 | 7.36% | $2,758 |
| 620-659 | 7.79% | $2,880 |
*Based on $400,000 loan. Actual rates vary.
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How to Improve Your Credit Score
- Pay All Bills On Time: Payment history is 35% of your score.
- Reduce Credit Utilization: Keep balances below 30% of credit limits.
- Don't Close Old Credit Cards: Length of credit history matters.
- Dispute Credit Report Errors: Check reports at AnnualCreditReport.com.
- Avoid New Credit Applications: Wait until after mortgage approval.
Explore Loan Options Based on Your Credit
Jason Iacovelli
Licensed Mortgage Broker
Jason Iacovelli is a licensed mortgage broker serving the Raleigh-Durham Triangle area. With over two decades of experience, Jason works with borrowers at all credit levels to find the best mortgage solutions.
Last reviewed and updated: December 31, 2025
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Frequently Asked Questions About Credit Scores for Mortgages
Understanding credit requirements for home buying in NC