The Credit Score Myth That’s Keeping Buyers on the Sidelines

Many people who want to buy a home aren’t waiting because they’re unsure — they’re waiting because they believe they can’t. And more often than not, that belief comes down to one thing: their credit score.

A lot of would-be buyers assume you need near-perfect credit to qualify for a mortgage. In fact, a Bankrate survey found that 42% of Americans believe excellent credit is required to buy a home. That misconception shows up all the time when renters explain why they haven’t purchased yet — “my credit isn’t good enough” is one of the most common reasons.

If that sounds familiar, you’re not alone. Many people look at their credit score, see it isn’t where they want it to be, and decide buying a home just isn’t realistic right now.

But here’s the truth most buyers don’t hear often enough.

You Don’t Need Perfect Credit to Buy a Home

The idea that you need flawless credit is one of the biggest myths in real estate. While it’s true that many buyers today have strong credit, that doesn’t mean your score has to be that high to qualify.

According to data from the New York Federal Reserve, the median credit score for recent homebuyers is around 775. That number can make it feel like anything below that won’t work — but that’s simply not the case.

When you look closer, a meaningful portion of buyers are purchasing homes with credit scores well below that. In fact, data shows that about 10% of recent buyers had scores around the mid-600s. Some were higher, some were lower — but the takeaway is clear: people are still buying homes without “perfect” credit.

As FICO explains, there’s no single credit score that automatically qualifies or disqualifies you from buying a home. Every lender has their own guidelines, risk tolerance, and programs, and they look at more than just one number when making lending decisions.

Why Talking to a Lender Matters

Instead of assuming your credit score shuts the door, the best next step is simply to talk to a trusted lender. They can look at your full financial picture and help you understand what options are actually available — not just what you’ve heard online.

For some buyers, that conversation leads to an immediate path to homeownership. For others, it turns into a short-term game plan to improve their position and buy sooner than expected.

Either way, clarity beats guessing.

Bottom Line

Your credit score matters — but it doesn’t have to be perfect.

If credit concerns have been the reason you’ve been putting off buying a home, it may be worth taking another look. You don’t need to have everything figured out before starting the conversation. Sometimes, that first conversation is what shows you buying a home is closer than you think.