What Credit Score Is Needed to Buy a House in Wisconsin?

Updated February 2026

If you’re preparing to buy your first home, one of the very first things you’ll want to understand is the credit score needed to buy a house. The good news is that you do not need perfect credit to qualify for a mortgage, and there are several loan programs designed specifically to support first-time buyers with average credit profiles.

Your credit score influences the loan types you qualify for, your interest rate, your mortgage insurance costs, and ultimately your monthly payment. In areas like Cross Plains and Middleton, where first-time buyers operate in competitive yet approachable price ranges, understanding credit early can make the buying process smoother and more strategic.

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Why Credit Score Matters When Buying a Home

Mortgage lenders use your credit score to evaluate:

• repayment reliability

• risk level

• loan eligibility

• pricing and interest rates

A higher credit score typically results in:

✔ lower interest rates
✔ more loan options
✔ lower monthly payments
✔ faster underwriting

Meanwhile, a lower score does not necessarily disqualify you — it simply influences which loan programs may work best.

If you’re new to credit scoring, the MyFICO education center is a helpful resource:
https://www.myfico.com/credit-education

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Minimum Credit Scores by Loan Type

Here are the typical minimum credit score requirements for major loan programs available to Wisconsin buyers:

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FHA Loans

✔ minimum score: 580 with 3.5% down
✔ flexible credit and debt guidelines
✔ allows gift funds

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Conventional Loans

✔ minimum score: typically 620
✔ mortgage insurance can be canceled later
✔ better pricing if scores are higher

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VA Loans (Eligible Veterans)

✔ minimum score: varies 580–620 by lender
✔ 0% down + no monthly mortgage insurance

VA home loan information:
https://www.va.gov/housing-assistance/home-loans/

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USDA Loans

✔ minimum score: typically 620
✔ 0% down for eligible rural/suburban areas
✔ income-based eligibility

USDA eligibility map:
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

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WHEDA Programs

WHEDA loans can often accommodate scores 620+, depending on pairing with FHA or Conventional structures.

Learn more at:
https://www.wheda.com/home-buyers

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What Score Is Competitive vs. Simply Eligible

Minimum scores tell you what’s possible — but competitive scores tell you what’s strategic:

Most first-time buyers fall in the 620–700 range.

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How Rates and Costs Change With Credit

Credit impacts:

• interest rates

• mortgage insurance

• total monthly payment

• total borrowing cost

Even a 0.25% rate difference can materially change total cost over 30 years.

You can model payments using Bankrate’s calculator:
https://www.bankrate.com/mortgages/mortgage-calculator/

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Local Layer: Cross Plains + Middleton

In communities like Cross Plains and Middleton, first-time buyers frequently use FHA + Conventional pathways because:

✔ price points are approachable
✔ competition exists but isn’t extreme
✔ USDA eligibility may apply nearby
✔ student loans are common among buyers

This makes credit flexibility meaningful for buyers entering the market for the first time.

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If Your Score Isn’t Where You Want It

Many buyers improve their credit faster than expected by:

✔ reducing revolving balances
✔ correcting reporting errors
✔ adjusting utilization before statement dates
✔ avoiding new credit pulls
✔ keeping older accounts open

For dispute and credit guidance, see:
https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/

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When to Check Your Credit

The ideal check order is:

1. Before preapproval

2. During application

3. Before closing (lenders sometimes re-verify)

If you haven’t started preapproval, read:
Prequalification vs Preapproval: What First-Time Buyers Need to Know 

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FAQs

Can I buy a house with student loans?
Yes, student loans are extremely common among first-time buyers.

Does checking my own score hurt it?
No. Self-checks are soft inquiries.

Can online scores differ from lender scores?
Yes. Lenders use mortgage-specific scoring models.

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Final Thoughts

You don’t need perfect credit to buy a home — you just need the right loan program and a clear understanding of your financial picture. The credit score needed to buy a house varies by program, but many Wisconsin first-time buyers qualify with scores between 580 and 620, depending on loan type.

If you’re exploring buying in Cross Plains, Middleton, or surrounding Dane County communities, I can help you understand which loan paths may fit your scenario and timeline.