{"id":19847,"date":"2023-09-06T15:42:28","date_gmt":"2023-09-06T21:42:28","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=19847"},"modified":"2025-06-06T11:07:14","modified_gmt":"2025-06-06T17:07:14","slug":"building-credit-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/building-credit-to-buy-a-home.html","title":{"rendered":"Building credit to buy a house: 13 best practices"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"570\" height=\"190\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-11.png\" alt=\"\" class=\"wp-image-19848\"\/><\/figure>\n\n\n\n<p><em>The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em><a href=\"https:\/\/www.lexingtonlaw.com\/disclaimer\" target=\"_blank\" rel=\"noreferrer noopener\"><em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n<p class=\"has-white-color has-text-color has-background has-link-color wp-elements-5c7b83e8c1636ae124d232dc12dc8039\" style=\"background-color:#00204f\">If you plan on applying for a mortgage, building your credit to buy a house is an essential step toward loan approval and a lower interest rate.<\/p>\n\n\n\n<p>Purchasing a home is huge milestone for most people\u2014but it\u2019s also a considerable investment requiring extensive planning, research and credit. For those that have yet to start <a href=\"https:\/\/www.lexingtonlaw.com\/education\/how-to-build-credit\" target=\"_blank\" rel=\"noreferrer noopener\">building their credit<\/a> to buy a house, being approved for a mortgage can be next to impossible. <\/p>\n\n\n\n<p>A good credit history helps lenders decide whether to trust that you\u2019ll make your loan payments on time. Your credit score reflects your credit history\u2014the higher the score, the lower your loan interest rate will likely be. If you need a head start improving your credit to make your homeowner dreams a reality, here are a few tried and true methods to consider.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-monitor-your-credit\">1. Monitor your credit<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"1060\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-12.png\" alt=\"\" class=\"wp-image-19849\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-12.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-12-768x835.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>Credit monitoring allows you to stay on top of changes to your credit so you can track your progress, identify potential errors and address any suspicious activity. The last thing you want is a hacker stealing your identity and opening fraudulent accounts in your name.<\/p>\n\n\n\n<p>If you just started your credit journey, it typically takes six months to generate your first credit report and credit score. You may be able to track changes to your credit score using your mobile banking app or our <a href=\"https:\/\/www.lexingtonlaw.com\/credit-snapshot\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit snapshot service<\/a>, which provides a free credit report summary, credit score and personalized repair recommendations.<\/p>\n\n\n\n<p>Credit building requires due diligence\u2014don\u2019t just track your credit score, but also learn the ins and outs of how credit works so you can stay on top of things. For example, you want to understand the following concepts:<\/p>\n\n\n\n<ul>\n<li><strong>Your credit limit: <\/strong>A high credit limit can be good for your credit. If you\u2019ve been making all the right money moves, you may be able to request an increase.&nbsp;<\/li>\n\n\n\n<li><strong>Your utilization rate: <\/strong>Calculate your <a href=\"https:\/\/www.lexingtonlaw.com\/education\/credit-utilization\" target=\"_blank\" rel=\"noreferrer noopener\">credit utilization rate<\/a> by dividing the amount of money you owe by your credit limit. Try to keep your utilization rate below 30 percent.<\/li>\n\n\n\n<li><strong>Payment due dates:<\/strong> Late payments can seriously ding your credit, so make sure you\u2019re paying your bills on time.<\/li>\n<\/ul>\n\n\n\n<p>Check your accounts daily to grasp your spending habits and identify areas that may need improvement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>2. Review your credit report for errors<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.consumerreports.org\/credit-scores-reports\/consumers-found-errors-in-their-credit-reports-a6996937910\/\" target=\"_blank\" rel=\"noreferrer noopener\">A 2021 study found<\/a> that one out of three volunteers had at least one error on one of their credit reports, so it\u2019s important for you to regularly review your credit report. Once a year, consumers can <a href=\"https:\/\/www.annualcreditreport.com\/index.action\" target=\"_blank\" rel=\"noreferrer noopener\">receive a free credit report<\/a> from each of the three major bureaus.<\/p>\n\n\n\n<p>Not all lenders and creditors report to all three credit bureaus, so the information on your reports may vary from bureau to bureau. This means that your score may also vary across bureaus, as your score is based on the information in your report.<\/p>\n\n\n\n<p>One thing to keep an eye out for are errors that could be bringing your score down, such as:<\/p>\n\n\n\n<ul>\n<li>Inaccurate missed payment dates<\/li>\n\n\n\n<li>Inaccurate dates of late payments<\/li>\n\n\n\n<li>Inaccurate balances<\/li>\n\n\n\n<li>Inaccurate dates an account was opened or closed<\/li>\n<\/ul>\n\n\n\n<p>Addressing errors on your credit report is a must if you\u2019re serious about improving your credit. If you discover any mistakes on your credit report, follow these steps to <a href=\"https:\/\/www.lexingtonlaw.com\/education\/credit-disputes\" target=\"_blank\" rel=\"noreferrer noopener\">dispute your credit report<\/a>:<\/p>\n\n\n\n<ol start=\"1\" style=\"list-style-type:1\">\n<li>Fill out the credit bureau\u2019s dispute form if they have one.<\/li>\n\n\n\n<li>Collect copies of documents that support your claim, and keep a record of everything you send.<\/li>\n\n\n\n<li>Draft a short letter detailing the error and the evidence you included to dispute it.<\/li>\n\n\n\n<li>Send your letter and supporting documents by certified mail to the bureau\u2019s consumer dispute center. Pay for a \u201creturn receipt\u201d so you have proof the bureau received it.<\/li>\n<\/ol>\n\n\n\n<p>Once the credit bureau receives your dispute, they have 30 \u2013 45 days to investigate it. If they deem the request \u201cirrelevant,\u201d they\u2019ll have to contact you to explain why they stopped investigating. If the bureau acknowledges they made a mistake, they must:<\/p>\n\n\n\n<ul>\n<li>Send you the results in writing, as well as a free updated copy of your credit report<\/li>\n\n\n\n<li>Send notices of the corrections to anyone who may have accessed the report in the last six months, such as potential lenders, landlords or employers<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>3. Pay off any delinquent accounts<\/h2>\n\n\n\n<p>It\u2019s easy to fall into the \u201cout of sight, out of mind\u201d habit when managing your credit payments, and a utility bill or car payment can occasionally slip through the cracks.<\/p>\n\n\n\n<p>Your credit payment history makes up the greatest percentage of your FICO credit score (35 percent), so delinquent accounts\u2014payments reported to one or more credit bureaus as 30+ days late\u2014should be paid off as soon as you notice them.<\/p>\n\n\n\n<p>Delinquent accounts reported on your credit indicate to lenders that you\u2019ve broken the terms of your contract to pay the money back\u2014it\u2019s not a good look if you want to apply for a mortgage. Even a payment that\u2019s only 30 days late can show up on your report for up to seven years.<\/p>\n\n\n\n<p>If you\u2019re serious about building your credit to buy a house, monitor your credit report and accounts regularly to spot and pay off delinquencies before they\u2019re reported. You may be hit with a late fee, but late payments likely won\u2019t be reported as delinquent if they\u2019re less than 30 days overdue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>4. Choose the right credit cards<\/h2>\n\n\n\n<p>Securing a credit card and using it responsibly is a quick and effective way to start building your credit. However, not all credit cards are created equal. Some <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-cards\/types-of-cards.html\" target=\"_blank\" rel=\"noreferrer noopener\">types of credit cards<\/a>, such as secured cards or joint cards, are designed to help people with bad or limited credit boost and strengthen their scores over time.<\/p>\n\n\n\n<table class=\"std-table\">\n    <thead>\n        <tr>\n            <th>Type of Credit Card<\/th>\n            <th><\/th>\n        <\/tr>\n    <\/thead>\n    <tbody>\n        <tr>\n            <td>Secured Card<\/td>\n            <td>Requires an upfront payment to act as collateral if you can\u2019t pay your balance\n\n<\/td>\n        <\/tr>\n        <tr>\n            <td>Student Card\n\n<\/td>\n            <td>Allows students with little to no credit history to begin building their profile, but usually with a lower credit limit. They may also offer incentives for good grades and cash back on everyday purchases\n<\/td>\n        <\/tr>\n        <tr>\n            <td>Starter Card\n<\/td>\n            <td>Helps people with little to no credit history build a credit profile, but they typically don\u2019t offer great rewards programs or cash back incentives. They also come with high interest rates\n\n<\/td>\n        <\/tr>\n       <tr>\n            <td>Joint Card\n<\/td>\n            <td>Requires two parties to apply together to start credit, and they are both equally responsible for paying off the balance\n<\/td>\n        <\/tr>\n       <tr>\n            <td>0% APR card\n<\/td>\n            <td>Doesn\u2019t require the borrower to pay interest on new purchases for a set period, making it easier to pay off big purchases and save money on interest\n<\/td>\n        <\/tr>\n       <tr>\n            <td>Starter Card\n<\/td>\n            <td>Helps people with little to no credit history build a credit profile, but they typically don\u2019t offer great rewards programs or cash back incentives. They also come with high interest rates\n\n<\/td>\n        <\/tr>\n       <tr>\n            <td>Balance transfer card\n<\/td>\n            <td>Offers temporarily low introductory rates\u2014but specifically for balance transfers\n\n\n\n<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\n<!-- partial -->\n  \n<\/body>\n<\/html>\n\n\n\n<p>If you\u2019re new to the credit game, look for a card that offers:<\/p>\n\n\n\n<ul>\n<li>$0 annual fees<\/li>\n\n\n\n<li>Initial 0% APR<\/li>\n\n\n\n<li>Credit-boosting tools (like free access to your credit score)<\/li>\n<\/ul>\n\n\n\n<p>Paying for everyday expenses with a credit card from a trusted financial institution helps establish your credit with purchases you would have made regardless. Make a habit of paying off your bill in full and on time each month to help your credit and avoid paying interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>5. Become an authorized user on someone else\u2019s credit card<\/h2>\n\n\n\n<p>It can be difficult to qualify for a good credit card if you have a thin credit file or setbacks to overcome. One lesser-known credit-building strategy is becoming an authorized user on someone else\u2019s credit account\u2014as long as that person has a solid credit history and is financially responsible.<\/p>\n\n\n\n<p>An authorized user is someone with access to a primary user\u2019s credit card account. This additional user will be issued their own credit card with their name on it, but the primary user will remain legally responsible for keeping up with the payments.<\/p>\n\n\n\n<p>It\u2019ll be up to you and the primary user to decide whether you use your card. Even if you choose not to use your card, becoming an authorized user has lots of advantages like:<\/p>\n\n\n\n<ul>\n<li><strong>Easy access to a great card and benefits:<\/strong> Even if you have poor credit or little to no credit history, you don\u2019t have to go through an approval process or credit check to become an authorized user.<\/li>\n\n\n\n<li><strong>Ability to build credit quickly:<\/strong> Authorized users can bump up their credit score if the credit line is well established, with a positive payment history and a low credit utilization rate.<\/li>\n\n\n\n<li><strong>Lower credit utilization:<\/strong> When you become an authorized user, the credit limit from that account is factored into your utilization rate. Even if you owe $500 on one card, your credit utilization rate will decrease.<\/li>\n\n\n\n<li><strong>Fast reward earnings:<\/strong> If you have two people using a cashback card or another type of rewards card, expect to see the points pile up much quicker.<\/li>\n<\/ul>\n\n\n\n<p>That being said, the benefits of being an authorized user are only as good as the financial status of the primary account holder. Choose a close friend, family member or spouse you know you can trust to be responsible for their money. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">6. Request a credit limit increase<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"1281\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-13.png\" alt=\"\" class=\"wp-image-19850\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-13.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/09\/image-13-768x1009.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>We briefly touched on how a higher credit limit can lower your utilization rate and positively affect your credit, so long as your spending habits stay relatively the same.<\/p>\n\n\n\n<p>You may be eligible for a credit increase if you\u2019ve had your credit account open for at least six months with regular on-time payments and kept your utilization rate below 30 percent. To increase your chances of being approved, you should time your request when:<\/p>\n\n\n\n<ul>\n<li>You\u2019ve received or taken on a higher-paying job<\/li>\n\n\n\n<li>Your credit score is considered \u201cgood\u201d or \u201cexcellent\u201d (above 700, generally)<\/li>\n\n\n\n<li>Your credit history shows a streak of good habits<\/li>\n<\/ul>\n\n\n\n<p>Unfortunately, a denied request can hurt more than just your ego. Because credit limit increases can trigger a hard credit inquiry, you may see a temporary dip in your credit score, especially if you don\u2019t have an established credit history. Some times to avoid requesting a credit limit increase are when:<\/p>\n\n\n\n<ul>\n<li>You\u2019ve recently requested an increase elsewhere or applied for a new line of credit<\/li>\n\n\n\n<li>You\u2019ve taken on a lower-paying job<\/li>\n\n\n\n<li>Your credit could use more work<\/li>\n\n\n\n<li>You\u2019ve had recent late payments or a high utilization rate<\/li>\n\n\n\n<li>You\u2019re planning an overseas vacation (and will be more susceptible to credit card fraud)<\/li>\n<\/ul>\n\n\n\n<p>If you need a credit limit increase but would like to forgo the hard inquiry, talk to your credit card issuer. Sometimes they\u2019ll offer a smaller increase if you demonstrate good financial habits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>7. Stay on top of credit payments<\/h2>\n\n\n\n<p>Payment history counts for 35 percent of your FICO credit score, so it\u2019s important to make your payments on time to work your way up to a mortgage.<\/p>\n\n\n\n<p>For peace of mind, consider setting up automatic payments on your credit cards and loans. Instead of remembering to mail the bill or log into your banking app, you can relax and let your bank take care of it. You will avoid late fees and build a history of on-time payments to help your credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>8. Don\u2019t close your old accounts<\/h2>\n\n\n\n<p>Even if you\u2019ve paid off all your debts or stopped using a credit card, refrain from closing it. Even an account you don\u2019t use has a credit limit that adds to your overall available credit and your utilization rate. Close it, and you\u2019ll likely see a spike in your overall utilization rate, which could hurt your credit.<\/p>\n\n\n\n<p>Keeping multiple lines of credit open can show lenders that you can juggle a variety of loans and payment schedules at once, which can also help your credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>9. Keep credit inquiries to a minimum<\/h2>\n\n\n\n<p>Lenders will often run a <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/negative-items\/what-is-a-hard-inquiry.html\" target=\"_blank\" rel=\"noreferrer noopener\">hard credit inquiry<\/a> before approving you for a loan or new line of credit to ensure they can trust you to make the payments. While one hard credit inquiry will result in a few points temporarily docked from your score, making too many inquiries at once can seriously affect your financial health.<\/p>\n\n\n\n<p>Opening <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-cards\/how-many-cards-should-you-have.html\" target=\"_blank\" rel=\"noreferrer noopener\">multiple credit cards<\/a> or applying for different types of loans in a short amount of time results in multiple hard inquiries on your credit. This could result in more damage to your credit\u2014which could cost you a better mortgage rate.<\/p>\n\n\n\n<p>Multiple credit inquiries may indicate to lenders that your financial situation has changed recently, so they may be more reluctant to offer you a home loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>11. Avoid taking on any new debt<\/h2>\n\n\n\n<p>If you\u2019re in the early stages of credit building or are in the process of <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/whats-the-right-way-to-pay-off-debt.html\" target=\"_blank\" rel=\"noreferrer noopener\">paying off existing debt<\/a>, don\u2019t bite off more than you can chew in hopes of boosting your score. A variety of loans and credit cards may look good on a credit report, but not if you\u2019re struggling to make timely payments and keep utilization rates low.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>12. Take advantage of everyday bill payments<\/h2>\n\n\n\n<p>Think of all the monthly bills you pay, like your water bill, Netflix subscription and rent. Wouldn\u2019t it be great to have those on-time payments count toward your credit?<\/p>\n\n\n\n<p>Typically, these types of bills have minimal impact on your credit (unless they become delinquent). However, there are <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/alternative-credit-data.html\" target=\"_blank\" rel=\"noreferrer noopener\">credit-building tools available<\/a> to report your punctual payments to the credit bureaus so they\u2019re reflected in your report. Investing in services like these allows you to get credit for the bills you already pay.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>13. Be patient<\/h2>\n\n\n\n<p>Establishing excellent credit takes time\u2014for some longer than others. The average <a href=\"https:\/\/www.lexingtonlaw.com\/education\/length-of-credit-history\" target=\"_blank\" rel=\"noreferrer noopener\">age of your credit history<\/a> accounts for 15 percent of your total FICO score, so new credit users may have to wait a year or two to reap the rewards of their good money practices.<\/p>\n\n\n\n<p>For those recovering from a rocky credit history or bankruptcy, it may take even longer for get their score back in the \u201cgood\u201d range. Following the steps above for building credit to buy a house will help you avoid any additional setbacks. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How is a credit score calculated?<\/h2>\n\n\n\n<p>FICO credit scores are calculate based on five factors:<\/p>\n\n\n\n<ul>\n<li><strong>Your payment history (35 percent):<\/strong> This takes into account on-time payments, as well as previous bankruptcies, collection accounts and delinquencies.<\/li>\n\n\n\n<li><strong>The amount of debt you owe (30 percent):<\/strong> This is where your credit utilization rate comes in\u2014lenders want to see you\u2019re responsible with your debt and not constantly running up or exceeding your credit limit.<\/li>\n\n\n\n<li><strong>The age of your credit history (15 percent): <\/strong>The longer your accounts have been open and well managed, the better your standing will be.<\/li>\n\n\n\n<li><strong>Your credit mix (10 percent): <\/strong>Having a variety of lines and credit lines shows lenders you can successfully manage multiple accounts.<\/li>\n\n\n\n<li><strong>Your recent credit activity (10 percent): <\/strong>Hard credit inquiries may indicate financial pressures or a change in your spending habits, which is why they can impact your credit (though their effect is often negligible and temporary).<\/li>\n<\/ul>\n\n\n\n<p>Credit bureaus use this data in your credit report to measure your risk as a borrower. You\u2019ll be given an overall score ranging from 300 (bad) to 850 (excellent).<\/p>\n\n\n\n<table class=\"std-table\">\n    <thead>\n        <tr>\n            <th>FICO Credit Score<\/th>\n            <th><\/th>\n        <\/tr>\n    <\/thead>\n    <tbody>\n        <tr>\n            <td>720-850<\/td>\n            <td>Excellent<\/td>\n        <\/tr>\n        <tr>\n            <td>690-719<\/td>\n            <td>Good\n<\/td>\n        <\/tr>\n        <tr>\n            <td>630-689<\/td>\n            <td>Fair<\/td>\n        <\/tr>\n       <tr>\n            <td>300-629<\/td>\n            <td>Bad<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\n<!-- partial -->\n  \n<\/body>\n<\/html>\n\n\n\n<h2 class=\"wp-block-heading\">How credit affects the homebuying process<\/h2>\n\n\n\n<p>Interest rates are typically determined by your creditworthiness, so you\u2019ll need very good credit to get the lowest interest rates on a home loan. You may be able to get a lower rate with a low credit score if you plan to make a large down payment.<\/p>\n\n\n\n<p>Lenders will also reference your credit to establish loan worthiness. Loan worthiness may be determined by:<\/p>\n\n\n\n<ul>\n<li>Payment history<\/li>\n\n\n\n<li>Credit age<\/li>\n\n\n\n<li>New credit<\/li>\n\n\n\n<li>Utilization rate<\/li>\n\n\n\n<li>Debt-to-income ratio<\/li>\n<\/ul>\n\n\n\n<p>Your credit report will contain all this information so a lender can decide whether to trust you with a loan or not.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>What credit score do you need to buy a house?<\/h2>\n\n\n\n<p>Technically speaking, you don\u2019t need a particular <a href=\"https:\/\/www.lexingtonlaw.com\/education\/credit-score-needed-buy-a-house\" target=\"_blank\" rel=\"noreferrer noopener\">credit score to buy a house<\/a> if you pay it all in cash. But most aspiring homeowners will need a credit score of <a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/what-credit-score-do-i-need-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">at least 620<\/a>\u2014considered a \u201cfair\u201d rating\u2014to qualify for a loan. Of course, the minimum credit score you\u2019ll need to secure a loan varies by the type of mortgage. For example, you only need a score of <a href=\"https:\/\/www.fha.com\/fha_loan_requirements\" target=\"_blank\" rel=\"noreferrer noopener\">500 plus a 10 percent down payment<\/a> to qualify for an <a href=\"https:\/\/www.lexingtonlaw.com\/education\/what-is-an-fha-loan\" target=\"_blank\" rel=\"noreferrer noopener\">FHA loan<\/a>, but jumbo loans will likely require a <a href=\"https:\/\/money.usnews.com\/loans\/mortgages\/articles\/jumbo-loans-for-beginners\" target=\"_blank\" rel=\"noreferrer noopener\">minimum credit score of 700<\/a>.<\/p>\n\n\n\n<table class=\"std-table\">\n    <thead>\n        <tr>\n            <th>Mortgage Type<\/th>\n            <th>Minimum Credit Score Required<\/th>\n        <\/tr>\n    <\/thead>\n    <tbody>\n        <tr>\n            <td>Conventional<\/td>\n            <td>620<\/td>\n        <\/tr>\n        <tr>\n            <td>FHA<\/td>\n            <td>500 + 10% down payment\n<\/td>\n        <\/tr>\n        <tr>\n            <td>USDA<\/td>\n            <td>640<\/td>\n        <\/tr>\n      <tr>\n            <td>VA<\/td>\n            <td>No minimum (but lenders prefer at least 620)<\/td>\n        <\/tr>\n      <tr>\n            <td>Jumbo<\/td>\n            <td>700<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\n<!-- partial -->\n  \n<\/body>\n<\/html>\n\n\n\n<p>To get a better understanding of how your credit score can impact your home financing options, use a mortgage calculator to see how an increase to your score can make a huge difference to your monthly payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a>Can you still get a loan with bad credit?<\/h2>\n\n\n\n<p>You can <a href=\"https:\/\/www.lexingtonlaw.com\/education\/buy-house-with-bad-credit\" target=\"_blank\" rel=\"noreferrer noopener\">apply for a mortgage with bad credit<\/a>, but you may be tied to high interest rates and undesirable terms. If possible, wait until you qualify for one of the loans mentioned above, and follow our guide to building credit.<\/p>\n\n\n\n<p>Buying a home is complicated, and a low credit score can severely impact your financing options. This is why it\u2019s important to work on building and repairing your credit long before it comes time to buy property\u2014and Lexington Law Firm could help. Our <a href=\"https:\/\/www.lexingtonlaw.com\/credit-repair-services\" target=\"_blank\" rel=\"noreferrer noopener\">credit repair consultants<\/a> can work with you to address inaccurate items listed on your credit reports so you can focus on building healthy money habits now.<\/p>\n\n\n\n<p><a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/lexingtonlaw.com\/disclaimer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>Note:<\/em><\/strong><\/a><em> Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Building your credit to buy a house can take years, but these credit-building tips can help you get approved for a competitive mortgage rate faster.<\/p>\n","protected":false},"author":63,"featured_media":19848,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v18.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Building Credit to Buy a House: 13 Best Practices | Lexington Law<\/title>\n<meta name=\"description\" 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