What Credit Score Do You Need to Buy a House in Colorado?

Your credit score is one of the first things a lender looks at, but it is not the only thing. Here is exactly what you need by loan type in Colorado, plus what you can do if your score needs some work.

Minimum Credit Scores by Loan Type

FHA Loans

FHA loans are backed by the federal government and are designed for buyers who are still building credit. The minimum score is 580 if you are putting 3.5% down. If your score is between 500 and 579, you can still qualify but you will need 10% down. Below 500, FHA is not an option.

VA Loans

VA loans do not have an official government minimum, but most lenders, including us, want to see a score of 620 or higher. VA loans are one of the best deals in mortgage lending. No down payment, no monthly mortgage insurance. If you served, it is worth looking into.

Conventional Loans

Conventional loans require a minimum of 620. But here is the thing: the rate you get depends heavily on where your score lands. A 620 will get you approved, but a 740 or higher puts you in the best rate tier. The difference in rate between a 620 and a 760 can be 0.5% to 1% or more, which adds up to thousands of dollars over the life of the loan.

CHFA Loans

Colorado Housing and Finance Authority loans require a 620 minimum. These are great for first-time buyers who need down payment help.

What Actually Makes Up Your Score

Your credit score comes from five main factors. Payment history is the biggest one, making up about 35% of your score. Next is amounts owed, which is 30%. This is your credit utilization, basically how much of your available credit you are using. Lower is better. Length of credit history is 15%, new credit inquiries are 10%, and your credit mix is 10%.

The fastest way to boost your score before buying is to pay down credit card balances. Getting your utilization under 30% on each card can move your score up meaningfully within 30 to 60 days.

What If Your Score Is Not There Yet

We work with buyers at all stages. Some clients come to us with a 620 and we close them right away. Others need 60 to 90 days to clean a few things up first. Either way, we will give you a straight answer about where you stand and what it would take to get you into a home.

We have helped buyers with scores in the 580s close on FHA loans and get into their first home. It is not as rare as people think.