Yes, you can absolutely buy a house with a 631 credit score, as it falls within the "fair" range and meets the minimum requirements for several, if not most,, mortgage types. FHA loans (requiring 580+) and conventional loans (often 620+) are achievable, though you may face higher interest rates, stricter debt-to-income requirements, and potentially higher down payment requirements.
With your 631 credit score, lenders will generally consider you to be a higher-risk borrower. This means to get loan approval, you're likely to need strong qualifications when it comes to income, employment, and other debts.
The lowest credit score to buy a house can be 500 for an FHA loan with a 10% down payment, but most loans require higher scores, with conventional loans needing around 620, and VA/USDA loans having no official minimum but lenders often preferring 580-640+, meaning the actual minimum depends heavily on the loan type and lender.
Minimum credit score to buy a house
Lender requirements vary, but for most loan types, you need at least 620 for a conventional home loan. This credit score is below average, so you may have to borrow at a higher interest rate than someone with a better score.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 631 FICO® ScoreΘ is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
If you want to increase your score, there are some things you can do, including:
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
Between 600 and 660, you can still qualify for financing, but lenders may see you as a moderate risk.
But generally speaking, here are some of the best ways to take your credit score into 700 territory.
A 630 credit score is considered fair, below the U.S. average of 715. Qualification for some credit cards, car loans, and personal loans is possible, but not with the best terms. Higher interest rates and limited access to certain loans are potential drawbacks of a 630 credit score.
Yes, $74,000 is generally considered a good salary, often seen as middle-class and above the U.S. median, but its sufficiency heavily depends on your location (cost of living), lifestyle, and household size, as it might comfortably cover rent in many areas but struggle to afford a median-priced home in most states. A recent survey found Americans consider it a "perfect" salary for happiness, though many still feel it's not enough for their desired lifestyle, highlighting high housing costs.
Based on a monthly salary of ₹70000 and assuming no existing financial obligations (like ongoing EMIs or outstanding credit card dues), you may be eligible for a home loan amount of approximately ₹34.51 lakhs. The interest rate could range between *9.25% and 15% or higher, with a loan tenure of up to 180 months.
The 15/3 credit card payment method is a strategy to improve your credit score by making two payments monthly: one around 15 days before the statement closing date and another about 3 days before the due date, aiming to lower your reported balance and credit utilization ratio before the issuer reports to bureaus. While paying down balances helps, experts note there's nothing magical about the 15 and 3-day marks, suggesting focusing on your statement's credit reporting date for better results.
To afford a $300k house, you generally need an income between $70,000 and $90,000 annually, depending on your down payment, credit, and existing debts, with a common guideline being your total housing costs (mortgage, taxes, insurance) should be under 28-36% of your gross monthly income. A larger down payment (like 20%) and lower other debts (student loans, car payments) allow you to qualify with a lower income, potentially around $75k-$85k, while less down payment or more debt might push the required income towards $100k or more.
Paying off your balances and reducing your debt load is the fastest way to boost your credit score. “Say your credit cards are maxed out and you're using more than 90% of your credit line,” Groberg said. “If you paid off your balance in full, it could raise your score 60 to 100 points.”
The lowest credit score for a mortgage depends on the loan type, with FHA loans allowing scores as low as 500 (with 10% down), while conventional loans typically need at least a 620 FICO score, and VA/USDA loans have flexible or no official minimums but lenders often prefer 580-640. You'll likely get a higher interest rate with lower scores, but options exist for borrowers with fair to poor credit.