The Homebuyer’s Corner
What Credit Score Do I Need to Buy a House in California?
Written by Armando Novelo, NMLS 237243, a mortgage loan officer in West Covina with over 20 years of experience helping Southern California buyers.
You may be able to buy a house in California with a credit score as low as 500, but there is no single score that works for every mortgage. Armando Novelo reviews the loan program, full credit report, down payment, monthly debts, income and lender requirements before deciding whether a buyer is actually ready. Under current HUD FHA guidelines, a score of 580 or higher can qualify for maximum FHA financing, while a score from 500 to 579 is limited to 90 percent loan-to-value. Conventional financing is more nuanced because current Fannie Mae guidance says Desktop Underwriter loan casefiles do not have a blanket minimum credit score.
That last part matters. A lot of mortgage advice still repeats "620 for conventional" as if nothing changed. It did.
Can I Buy a House With a 500 Credit Score in California
Yes, potentially. Armando Novelo can evaluate an FHA option for a California buyer with a score between 500 and 579, but HUD limits that range to a maximum 90 percent loan-to-value. At 580 or higher, FHA allows maximum financing of 96.5 percent on a standard purchase. Buyers can review those thresholds in the current FHA Single Family Housing Policy Handbook 4000.1.
The mistake is treating the FHA minimum as a promise that every lender will approve the file. Armando also checks lender overlays because an individual lender can require a higher score or impose additional credit standards. A buyer can meet HUD's baseline and still need a different lender, a stronger overall file or more time before the loan makes sense.
If FHA and conventional are both on the table, Armando compares the full cost instead of choosing a program from the score alone. His guide to FHA versus conventional loans in California explains why mortgage insurance, down payment, monthly debt and expected time in the home can change the answer.
Is FHA Changing How Credit Scores Work?
Yes, but the change is not in effect for FHA case numbers assigned today. On October 8, 2026, FHA published new guidance that will add VantageScore 4.0 and FICO Score 10T alongside Classic FICO for eligible Title II forward mortgages with case numbers assigned on or after January 1, 2027.
Armando is watching that transition because the score a homebuyer sees in a consumer app is not always the same score or scoring model used for mortgage underwriting. For buyers applying now, Armando still evaluates the file under the current FHA rules. Buyers can review FHA's October 2026 alternative credit score update.
Do Conventional Loans Still Require a 620 Credit Score?
Not across the board.
For Fannie Mae loan files run through Desktop Underwriter, or DU, Armando Novelo no longer has to apply a blanket 620 minimum because current Fannie Mae guidance says a minimum credit score is not required for DU loan casefiles. DU evaluates the borrower's broader risk profile instead. For manually underwritten Fannie Mae loans, the current minimum remains 620 for fixed-rate loans and 640 for adjustable-rate mortgages. Buyers can review the current rule directly in Fannie Mae Selling Guide B3-5.1-01.
That does not mean a buyer with a very low score suddenly has an easy conventional approval. Armando still evaluates the complete file, and lenders can add their own overlays. Credit history, debt, reserves, down payment and the rest of the application still matter.
The practical lesson is simple. Do not disqualify yourself because somebody told you conventional always starts at 620. Also do not assume that having a score below 620 means DU will approve you. Armando runs the actual scenario before deciding what is realistic.
What Credit Score Do I Need for a VA Loan?
The Department of Veterans Affairs does not set a minimum credit score for a VA-backed home loan. Armando still has to qualify the veteran or service member under the lender's credit standards because individual VA lenders can set their own score requirements. The VA explains this distinction on its current home loan entitlement and limits page.
"VA has no minimum" and "every lender will approve any score" are not the same statement.
For eligible veterans and active-duty buyers, Armando also reviews entitlement, income, debts, occupancy and the rest of the file before deciding whether VA is the strongest option. His California VA loan guide goes deeper into how the benefit works.
Does My Credit Score Only Matter for Approval?
No. Armando Novelo looks at credit as both an approval issue and a pricing issue.
The Consumer Financial Protection Bureau explains that credit scores and credit-report information affect both mortgage eligibility and the rate a borrower may receive. Higher scores generally make borrowers eligible for lower interest rates.
This is why Armando does not stop when a buyer technically qualifies. He compares what the loan looks like now with what it could look like after a realistic period of improvement. Sometimes buying now is clearly the better move. Sometimes waiting a short time can improve the rate, mortgage insurance or available program enough to justify the delay.
The goal is not to chase a perfect score. The goal is to know whether improving the score actually changes the mortgage.
Should I Pay Off Debt Before I Apply for a Mortgage?
Not automatically. Paying something off because it feels responsible is not always the same as making the move that helps your mortgage file the most.
A buyer came to Armando after another lender told her to pay off a few accounts to raise her score before applying. She had already paid off two balances, but the score did not move the way she expected. Instead of assuming another payoff was the answer, Armando reviewed the actual credit report and found an incorrect late payment being reported by one creditor.
That changed the strategy. The issue was not simply that she needed to pay down more debt. There was inaccurate information on the report that needed to be corrected first. After the item was disputed and corrected, her score improved more than it had from the two previous payoffs. She qualified for a better rate tier and later closed on a home in Covina with a lower monthly payment than the first lender had quoted.
The lesson Armando takes from that file is not "dispute everything" or "never pay debt down." It is that the report has to tell you what problem you are actually trying to solve before you start moving money around.
This was one buyer's result. Credit-score changes, loan pricing and approval outcomes vary by borrower profile, lender and market conditions.
Armando reviews balances, utilization, payment history, reporting errors and timing before telling a buyer where extra cash may help most. His article on what lenders actually look at during mortgage approval explains why the score is only one part of the file.
What Credit Score Should I Aim for Before Buying?
There is no universal target that Armando would give every California buyer.
A stronger score can improve pricing and expand your options, but the right target depends on what changes at the next score level, how long that improvement is likely to take and what may happen to your buying timeline while you wait. A buyer who is already in a strong position may gain very little by delaying the purchase. Another buyer may be one correctable credit issue away from a better loan.
Armando would rather answer a more useful question: what would need to change in your credit profile for the mortgage itself to get meaningfully better?
That answer comes from running the numbers, not picking a round score because it sounds safe.
When Should I Have My Credit Reviewed Before Buying?
Earlier than most buyers think. Armando can do more with a credit issue when there is time to work on it than when a purchase contract is already signed and the closing clock is running.
The Consumer Financial Protection Bureau recommends checking credit reports for errors before mortgage shopping. Checking your own credit does not hurt your score. The CFPB also explains that mortgage lenders may use scores from all three major credit reporting companies, which is one reason the score a buyer sees elsewhere may not match the score used for a mortgage.
Armando's guide on why starting the mortgage process early creates more options explains why early review is useful even when you are months away from making an offer.
You do not need to wait until your credit feels perfect. You need enough time to understand what is there and make the moves that actually matter.
What Is the Best First Step if I Am Worried About My Credit?
Start with the full picture, not just the number on a credit monitoring app.
Armando reviews the mortgage credit report, your buying timeline, cash available, monthly debts and the loan programs that fit your situation. If the file is ready now, he can show you what the options look like. If there is a specific issue worth improving first, he can explain what that issue is and why it matters before you start moving money around.
You can also review Armando's current loan program overview to see how the major financing options fit different borrower situations.
If you are planning to buy in the San Gabriel Valley or elsewhere in California and you are not sure whether your credit is ready, the useful question is not "Is my score good enough?" It is "What does my current credit let me do, and what would actually improve if I changed it?"
That is the conversation Armando wants to have before you start making offers.
Not sure what your credit lets you do yet?
Start with Armando's buyer readiness quiz to see where you stand. If you are ready to take the next step, you can choose a time to talk with Armando about your path toward buying a home.
Armando Novelo, NMLS 237243, is a mortgage loan officer at Super Mortgage Bros, powered by Golden Empire Mortgage. He has been helping Southern California buyers and homeowners since 2002. His office is located in West Covina, CA.
Article Published: September 29, 2026
Date modified: October 13, 2026
Last reviewed: October 13, 2026
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Armando Novelo
NMLS 237243
Super Mortgage Bros
1900 W. Garvey Ave S. #100
West Covina, CA 91790
Phone: (626) 200-1838
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