What credit score do I need to buy a house?

Conventional loans typically require a minimum credit score of 620. FHA loans allow scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no official minimum but most lenders prefer 620+. Higher scores unlock better rates.

How much do I need for a down payment?

Down payment requirements vary by loan type: FHA loans require 3.5%, conventional loans can go as low as 3%, VA and USDA loans offer 0% down for eligible borrowers. A 20% down payment eliminates private mortgage insurance (PMI).

What is the difference between a fixed and adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the life of the loan, providing predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market conditions — ideal if you plan to sell or refinance within 5–7 years.

How much house can I afford?

A common guideline is to keep your total housing costs (mortgage, taxes, insurance) below 28% of your gross monthly income. Your total debt payments should stay below 36–43% of gross income (debt-to-income ratio). Use a mortgage calculator to estimate your budget.

What is PMI and how do I avoid it?

Private mortgage insurance (PMI) is required on conventional loans when you put down less than 20%. It typically costs 0.5%–1.5% of the loan amount annually. You can avoid PMI by making a 20% down payment, using a piggyback loan, or choosing a lender-paid PMI option.

Best Mortgages for 640 Credit Score (March 2026)

640

Fair Credit Range

Mortgage Options at This Score

What to Expect

Fair credit opens more doors. You'll qualify for most standard loan products, though rates will be higher than average.

WiseIQ Expert Tip

A 0.5% difference in mortgage rate on a $350,000 loan saves over $35,000 in interest over 30 years. Always get at least 3 quotes before choosing a lender.

Rate Impact

Rates typically run 3–8% above prime.

💡 Top Tip for 640 Credit

Keep credit utilization below 30% and avoid applying for multiple products at once.

Timeline: 6–12 months of responsible credit use can move you to good credit.

640 Fair Credit

Last Updated: March 2026 WiseIQ Editorial Team 8 min read

Rate Range

6.75% – 7.99%

Approval Odds

Min. Down Payment

3–3.5%

⚠️ Advertiser Disclosure: WiseIQ is reader-supported. We may earn a commission when you click links to our partners. This does not affect our editorial independence or the rates you receive.

← 620 Browse by Credit Score 660 →

640 gives you solid access to both FHA and conventional loans. PMI is required on conventional loans below 20% down, but rates are improving meaningfully from 620.

Our Top Picks for 640 Credit Score

Best Overall

Rocket Mortgage

APR Range6.75% – 7.99%

Min. Credit Score620

Why we recommend it: Rocket Mortgage offers competitive rates for 640 borrowers on both FHA and conventional loans with an excellent digital experience.

Check Your Rate →

Best Rate

Better.com

APR Range6.65% – 7.85%

Min. Credit Score620

Why we recommend it: Better.com consistently offers some of the lowest rates for 640 borrowers with no lender fees, which saves thousands at closing.

Check Your Rate →

Best for Comparison

Credible

APR Range6.75% – 7.99%

Min. Credit Score620

Why we recommend it: Credible's multi-lender comparison lets you see real rates from multiple lenders in minutes without affecting your credit score.

Check Your Rate →

Frequently Asked Questions

What mortgage rate can I get with a 640 credit score?

640 borrowers typically qualify for 6.75–8% on conventional loans in the current rate environment. FHA rates are similar but come with mandatory mortgage insurance.

How much does PMI cost at 640 credit?

PMI for 640 borrowers typically costs 0.5–1.5% of the loan amount annually. On a $300,000 loan, that's $1,500–$4,500/year ($125–$375/month) until you reach 20% equity.

Is it worth waiting to improve from 640 to 680 before buying?

Improving from 640 to 680 could save 0.5–0.75% APR. On a $300,000 mortgage, that's $90–$135/month or $32,000–$48,000 over 30 years. If you can improve in 6–12 months, it may be worth waiting.

Sources & Methodology

WiseIQ's editorial team researches and fact-checks all content using primary sources. Our recommendations are based on independent analysis and are not influenced by advertiser relationships.

Consumer Financial Protection Bureau (CFPB) — regulatory data and consumer guidance
Federal Reserve — Consumer Credit Report (G.19) — interest rate benchmarks
AnnualCreditReport.com — official free credit report access
myFICO Credit Education — credit score methodology
Lender and issuer websites — rates, terms, and eligibility verified directly from source

Last reviewed: April 2026 | How we rank products

Best Mortgages for a 640 Credit Score

Rocket Mortgage

Better.com

Credible

Sources & Methodology

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