Can I buy a house with a 679 credit score?

Yes, it is absolutely possible to buy a house with a 679 credit score. While this score falls into the "good" credit range, it's not quite in the "excellent" tier. This means you can qualify for a mortgage, but you might face slightly higher interest rates and fewer loan options compared to borrowers with higher scores. This guide will break down what a 679 credit score means for your homeownership journey in 2025 and how to maximize your chances of approval and secure the best possible terms.

What is a 679 Credit Score? Understanding the Tiers

In the world of credit scoring, the FICO system is the most widely used, with scores typically ranging from 300 to 850. Lenders use these scores to assess your creditworthiness, essentially predicting how likely you are to repay borrowed money. Understanding where a 679 credit score falls is crucial for setting realistic expectations about your homebuying prospects. The general tiers are as follows:

• Exceptional Credit: 800-850. Borrowers with this score typically receive the best interest rates and loan terms.
• Very Good Credit: 740-799. Still excellent, offering access to competitive rates and a wide range of loan products.
• Good Credit: 670-739. This is where a 679 credit score resides. You are generally considered a reliable borrower, and most lenders will approve your mortgage applications. However, you may not qualify for the absolute lowest interest rates.
• Fair Credit: 580-669. Borrowers in this range may face higher interest rates, larger down payment requirements, and limited loan options. Some lenders might still approve loans, but often with stricter terms.
• Poor Credit: 300-579. Obtaining a mortgage with a score in this range is very challenging. It typically requires significant credit repair or specialized loan programs, often with very high costs.

A 679 credit score places you firmly in the "Good" category. This is a solid foundation for applying for a mortgage. It signifies that you have a history of managing credit responsibly, though perhaps with a few minor blemishes or a shorter credit history than someone with a score in the 700s or higher. For 2025, this score is generally considered sufficient to qualify for most standard mortgage products, but it's important to understand the nuances.

Can I Get a Mortgage with a 679 Credit Score? The Reality in 2025

The straightforward answer is: yes, you can generally get a mortgage with a 679 credit score in 2025. However, it's not as simple as a yes or no. Lenders look at your credit score as just one piece of the puzzle. They will also heavily consider your income, employment history, debt-to-income ratio (DTI), and the size of your down payment. A 679 score is above the minimum threshold for most loan programs, including conventional loans (which often require a minimum of 620) and FHA loans (which can go as low as 500 with a 10% down payment, or 580 with a 3.5% down payment). This means you have options. The key is to understand how this score might influence the terms you are offered and what steps you can take to present the strongest possible application.

In 2025, the mortgage market continues to be influenced by economic conditions, inflation rates, and the Federal Reserve's monetary policy. While credit availability remains relatively stable, lenders are meticulous in their underwriting. A 679 credit score, while good, might mean you won't automatically qualify for the most aggressive interest rates. You'll likely be compared against borrowers with scores in the mid-700s and above, who are seen as lower risk. Nevertheless, with diligent preparation and by exploring the right loan products, securing a mortgage is a very attainable goal.

Impact of a 679 Credit Score on Mortgage Approval

Your credit score is a primary factor in a lender's decision-making process. A 679 credit score, while qualifying, can have several implications for your mortgage application:

Interest Rates

This is perhaps the most significant impact. Lenders offer their best interest rates to borrowers with the highest credit scores because they represent the lowest risk. A 679 credit score will likely result in a higher interest rate compared to someone with a 740 or 760 score. Even a small difference in interest rate can translate into tens of thousands of dollars over the life of a 30-year mortgage. For example, in 2025, a borrower with an 800 credit score might secure a rate of 6.5%, while someone with a 679 score might be offered 7.2%. This difference can significantly increase your monthly payment and the total interest paid.

Consider this illustrative comparison (rates are hypothetical for 2025 and subject to market fluctuations):

As you can see, the difference between a 679 score and a higher score can add hundreds of dollars to your monthly payment and tens of thousands in total interest. This highlights the importance of trying to improve your score if possible, or at least shopping around extensively for the best rate.

Loan Options

While a 679 credit score opens doors to many loan types, it might limit your access to certain niche or premium loan products that require higher scores. For instance, some jumbo loans or specialized portfolio loans might have higher credit score minimums. However, the most common mortgage types – FHA, VA, USDA, and conventional loans – are generally accessible. The key is to understand the specific requirements of each lender and program. Some lenders might have overlays (additional requirements beyond the standard program guidelines) that could impact your eligibility with a 679 score.

Down Payment Requirements

A lower credit score can sometimes correlate with higher down payment expectations from lenders, especially for conventional loans. While some conventional loans allow as little as 3% down for borrowers with excellent credit, lenders might ask for a larger down payment from someone with a 679 score to mitigate their risk. However, government-backed loans like FHA loans are designed to be more accessible to borrowers with lower credit scores and often have lower down payment requirements (as low as 3.5% with a 580+ credit score).

Private Mortgage Insurance (PMI)

If you take out a conventional loan with less than 20% down payment, you will typically be required to pay Private Mortgage Insurance (PMI). The cost of PMI is influenced by your credit score. Borrowers with higher credit scores generally pay lower PMI premiums. With a 679 credit score, your PMI rate will likely be higher than someone with a score in the mid-700s. This adds to your monthly housing cost until you reach 20% equity in your home and can have it removed.

For FHA loans, you'll pay an FHA mortgage insurance premium (MIP), which is similar to PMI but has different structures and duration. For borrowers with a 679 credit score and a 3.5% down payment, the MIP will be a significant cost, though it's often lower than PMI for similar credit profiles on conventional loans.

Types of Mortgages Available for a 679 Credit Score

Fortunately, a 679 credit score does not significantly restrict your options for home financing. Several popular mortgage programs are designed to accommodate borrowers with good credit. Here's a look at the most common ones:

FHA Loans

The Federal Housing Administration (FHA) insures loans made by FHA-approved lenders. These loans are specifically designed to make homeownership more accessible, particularly for first-time homebuyers or those with less-than-perfect credit. For a 679 credit score, an FHA loan is often an excellent option.

• Minimum Credit Score: Generally 580 for a 3.5% down payment. A 679 score easily meets this. Some lenders might have overlays requiring a higher score, but 580 is the FHA guideline.
• Down Payment: As low as 3.5% for borrowers with a credit score of 580 or higher.
• Mortgage Insurance: Requires an upfront MIP and an annual MIP, which is paid monthly. This MIP is typically for the life of the loan if you put down less than 10%.
• Pros: Low down payment, more lenient credit score requirements, can be used for primary residences, manufactured homes, and condos.
• Cons: MIP can be costly and may last for the life of the loan. Loan limits apply based on location.

Conventional Loans

These loans are not backed by a government agency but are often sold to Fannie Mae and Freddie Mac. They are a popular choice for borrowers with good to excellent credit.

• Minimum Credit Score: Typically 620. A 679 score meets this requirement.
• Down Payment: Can be as low as 3% for some programs (e.g., Fannie Mae's HomeReady), but 5% is more common. If you put down less than 20%, you'll need PMI.
• Mortgage Insurance: PMI is required if the down payment is less than 20%. The cost varies based on your credit score and loan-to-value ratio.
• Pros: PMI can be canceled once you reach 20% equity. Often have competitive interest rates for borrowers with higher scores. More flexibility in loan terms.
• Cons: Can be harder to qualify for with lower credit scores compared to FHA loans. PMI adds to the monthly cost.

For a 679 credit score, qualifying for a conventional loan is possible, but expect PMI and potentially a slightly higher interest rate than someone with a score above 700.

VA Loans

These loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and are available to eligible active-duty military personnel, veterans, and surviving spouses. They offer some of the most attractive benefits in the mortgage market.

• Minimum Credit Score: The VA does not set a minimum credit score, but most lenders will require a score of 620 or higher. A 679 score is well within this range.
• Down Payment: Typically 0% down payment is required for eligible borrowers.
• Mortgage Insurance: No PMI or MIP is required. However, there is a VA funding fee, which varies based on service history and down payment amount.
• Pros: No down payment, no PMI, competitive interest rates, flexible credit requirements.
• Cons: Only available to eligible military members and veterans. Requires a VA funding fee (though this can sometimes be financed).

If you are a veteran or active-duty service member, a VA loan is likely your best option, even with a 679 credit score.

USDA Loans

These loans are guaranteed by the U.S. Department of Agriculture (USDA) and are designed to promote homeownership in eligible rural and suburban areas. They offer significant benefits for borrowers with moderate incomes.

• Minimum Credit Score: USDA guidelines do not set a minimum credit score, but lenders typically require a score of 640 or higher. A 679 score meets this.
• Down Payment: 0% down payment is required.
• Mortgage Insurance: Requires an upfront guarantee fee and an annual fee, paid monthly.
• Pros: No down payment, competitive interest rates, lower mortgage insurance costs compared to FHA.
• Cons: Property must be located in an eligible rural or suburban area. Income limits apply.

If you are looking to buy in an eligible area and meet the income requirements, a USDA loan can be a fantastic option with a 679 credit score.

Steps to Buying a House with a 679 Credit Score

Buying a home is a significant financial undertaking. With a 679 credit score, you are in a good position to proceed, but a structured approach will help you navigate the process smoothly and secure the best possible outcome. Here’s a step-by-step guide for 2025:

Step 1: Assess Your Financial Situation

Before you even start looking at houses, take a deep dive into your finances. This includes:

• Income: Gather documentation of your stable income (pay stubs, W-2s, tax returns). Lenders want to see a consistent history of employment and earnings.
• Savings: Determine how much you have saved for a down payment, closing costs, and an emergency fund.
• Debts: List all your outstanding debts (credit cards, student loans, car loans, personal loans). This is crucial for calculating your debt-to-income ratio (DTI).
• Monthly Expenses: Understand your current monthly spending to ensure a mortgage payment will be affordable.

Step 2: Check Your Credit Report for Errors

Your credit score is derived from your credit report. It's vital to ensure the information on your report is accurate. You are entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) annually via AnnualCreditReport.com.

Review your reports carefully for:

• Incorrect personal information.
• Accounts that don't belong to you.
• Incorrectly reported late payments or defaults.
• Errors in account balances or credit limits.

If you find any errors, dispute them immediately with the credit bureau and the creditor. Correcting errors can sometimes boost your score.

Step 3: Improve Your Credit Score (If Possible)

While a 679 is good, even a small increase can make a difference in interest rates and loan terms. If you have time before you plan to buy, consider these strategies:

• Pay down credit card balances: Aim to keep your credit utilization ratio (the amount of credit you're using compared to your total available credit) below 30%, and ideally below 10%.
• Pay all bills on time: Payment history is the most significant factor in your credit score.
• Avoid opening new credit accounts: Applying for new credit can temporarily lower your score.
• Check for errors: As mentioned, correcting errors can help.

Even a few months of focused effort can potentially nudge your score higher. For instance, bringing your credit utilization down from 40% to 15% could potentially raise your score by 10-20 points or more.

Step 4: Save for a Down Payment and Closing Costs

The down payment is the portion of the home's purchase price you pay upfront. Closing costs are fees associated with finalizing the mortgage and transferring ownership, typically ranging from 2% to 5% of the loan amount. With a 679 credit score, having a larger down payment can significantly improve your loan terms and reduce the amount you need to borrow, thus lowering your monthly payments and potentially offsetting a higher interest rate.

Down Payment Examples:

• FHA Loan (3.5%): On a $300,000 home, this is $10,500.
• Conventional Loan (5%): On a $300,000 home, this is $15,000.
• Conventional Loan (10%): On a $300,000 home, this is $30,000.

Closing Costs: For a $300,000 loan, closing costs could range from $6,000 to $15,000.

Having a substantial amount saved will not only make you a more attractive borrower but also provide a cushion for unexpected expenses.

Step 5: Get Pre-Approved for a Mortgage

Pre-approval is a crucial step. It involves a lender reviewing your financial information (income, assets, debts, credit score) to determine how much they are willing to lend you and at what potential interest rate. This is more thorough than pre-qualification and gives you a realistic budget.

When you apply for pre-approval with a 679 credit score:

• Be prepared to provide extensive documentation.
• Ask lenders about their specific credit score requirements and any overlays.
• Understand the estimated interest rate and monthly payment.
• Get the pre-approval letter in writing. This shows sellers you are a serious and qualified buyer.

It's advisable to get pre-approved by multiple lenders to compare offers. You can learn more about the strategies to maximize your chances here.

Step 6: Work with a Real Estate Agent

A good real estate agent can be invaluable. They have market knowledge, negotiation skills, and can guide you through the entire process. They can also recommend reputable lenders who are experienced with borrowers who have scores in the "good" range.

Step 7: Find a Home and Make an Offer

With your pre-approval in hand and your budget defined, you can start house hunting. Once you find a home you love, your agent will help you craft a competitive offer. Your pre-approval letter will be a key part of this offer.

Step 8: Underwriting and Closing

After your offer is accepted, the lender's underwriter will conduct a final review of your finances and the property's appraisal. This is the most detailed stage of the loan process. If approved, you'll move to closing, where you sign all the final paperwork and take ownership of your new home.

Strategies to Maximize Your Chances and Secure Better Terms

Even with a solid 679 credit score, you can employ several strategies to improve your mortgage approval odds and potentially secure more favorable terms. These tactics can help you stand out to lenders and get closer to the rates offered to borrowers with higher scores.

Consider a Co-Signer

If your credit score is borderline or if you have significant debt, adding a co-signer with a higher credit score and stable income can significantly improve your chances of approval and potentially lower your interest rate. A co-signer is equally responsible for the loan, so they must be comfortable with this commitment. Ensure your co-signer understands the implications for their credit report and financial obligations. This is a powerful tool, but it should be used thoughtfully.

Shop Around for Lenders

This is arguably the most critical strategy. Different lenders have different underwriting guidelines and risk appetites. A 679 credit score might be perfectly acceptable for one lender, while another might have stricter overlays. By getting quotes from multiple banks, credit unions, and mortgage brokers, you can compare interest rates, fees, and loan terms. Even a quarter-point difference in interest rate can save you thousands over the life of the loan. Remember that shopping for a mortgage within a short period (typically 14-45 days) will only count as one inquiry on your credit report, minimizing the impact on your score.

Key things to compare:

• Interest Rate (APR is the most comprehensive measure)
• Origination fees
• Underwriting fees
• Appraisal fees
• Points (if you choose to pay points to lower the rate)
• Private Mortgage Insurance (PMI) costs

Explore First-Time Homebuyer Programs

Many states, counties, and cities offer programs specifically designed to help first-time homebuyers. These programs can provide down payment assistance, closing cost grants, or even lower interest rates. Eligibility often depends on income limits and whether you are purchasing your first home. A 679 credit score is generally acceptable for these programs, as they aim to make homeownership accessible. Research programs available in your specific area through your state housing finance agency or local government websites.

Demonstrate Stable Income and Employment

Lenders want to see that you have a reliable source of income to make your mortgage payments. If you have a consistent work history with the same employer or in the same field, this strengthens your application. Even if you've recently changed jobs, if it's a career advancement and your income has increased, lenders may be receptive. Providing thorough documentation of your income, including W-2s, pay stubs, and tax returns, is essential. For self-employed individuals, this means having at least two years of tax returns readily available.

Reduce Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a key metric lenders use to assess your ability to manage monthly payments. It's calculated by dividing your total monthly debt payments (including the estimated new mortgage payment, property taxes, and insurance) by your gross monthly income. A lower DTI indicates that a smaller portion of your income is dedicated to debt, making you a less risky borrower.

How to lower your DTI:

• Pay down debts: Focus on paying off credit cards, car loans, and other personal loans.
• Avoid taking on new debt: Refrain from making large purchases on credit before applying for a mortgage.
• Increase your income: While not always feasible, a raise or a second job can improve your DTI.

For example, if your gross monthly income is $6,000 and your total monthly debt payments (excluding the new mortgage) are $1,500, your DTI is 25%. If you can reduce your existing debt payments to $1,000, your DTI drops to 16.7%, making you a more attractive borrower.

What If My Credit Score is Slightly Lower?

If your credit score is just below 679, perhaps in the 640-660 range, your options might become more limited, but not impossible. You would likely be looking at FHA loans as the primary option, as conventional loan requirements often start at 620 but can have higher rates and PMI for scores in this range. Some lenders might offer conventional loans but with significantly higher interest rates and PMI premiums. In such scenarios, focusing intensely on improving your credit score before applying is highly recommended. Even a 20-30 point increase could unlock better terms. Alternatively, exploring options like a co-signer or looking for specific programs designed for lower credit scores would be beneficial.

For scores below 620, the landscape becomes considerably more challenging. You might be looking at subprime lenders, which come with very high interest rates and fees, or requiring significant credit repair. The advice remains the same: focus on credit improvement, saving a larger down payment, and exploring all available government-backed programs.

Conclusion: Buying a Home with a 679 Credit Score is Achievable

In summary, the answer to "Can I buy a house with a 679 credit score?" is a resounding yes. A 679 credit score falls into the "good" credit tier, which is generally sufficient for mortgage approval in 2025. While it might not secure you the absolute lowest interest rates, it opens the door to a variety of loan programs, including FHA, conventional, VA, and USDA loans, depending on your eligibility.

The key to success lies in thorough preparation and strategic decision-making. By understanding how your credit score impacts interest rates, loan options, and insurance requirements, you can proactively address potential challenges. Focus on presenting a strong overall financial profile by demonstrating stable income, managing your debt-to-income ratio effectively, and saving diligently for your down payment and closing costs. Shopping around for lenders and exploring first-time homebuyer programs can also significantly improve your terms.

Don't let a "good" credit score deter you from your homeownership dreams. With the right approach, a 679 credit score can be the foundation for securing a mortgage and achieving your goal of owning a home in 2025. Start by assessing your finances, checking your credit reports, and speaking with multiple lenders to understand your specific options. Your journey to homeownership is within reach!