My Credit Score Is 640. Can I Buy a House?

You've got a 640 credit score, you're thinking about buying a house, and somewhere you picked up the idea that you need a 700 or 740 to even be considered. So you're wondering if the door is closed before you've started.

It isn't. You can buy a house with a 640 score— that's not wishful thinking, it's how the loan programs actually work. But the honest version of the answer isn't just "yes." It's "yes, and here's what it'll cost, and here's how to decide whether to buy now or wait."

Where a 640 score actually sits

640 is considered a "fair" score, and it clears the bar for the major loan programs. FHAloans allow scores as low as 580 with 3.5% down — so at 640 you're comfortably above the floor. Most conventionalloans start around 620, and VA and USDA lenders commonly work in this range too. You're eligible for several paths, not none.

Here's the key thing most people get wrong: your score mostly sets your interest rate, not a hard yes-or-no. And it's only one of three levers lenders look at. The other two are your debt-to-income ratio (how much of your income is already spoken for) and your down payment. A strong showing on those can offset a fair score — which is why checking which loan programs you fit matters more than fixating on the number alone.

The real question: what it costs you

Since 640 mainly affects your rate, the honest question isn't "can I qualify?" — it's "what does a fair-credit rate cost me over time?" A higher score buys a lower rate, and on a 30-year loan that gap is real money.

Take a $300,000 loan as an illustration. Suppose a 640 score gets you around 7.0% while a 740 would get about 6.25%— a three-quarter-point difference. That's roughly $1,996 a month versus $1,847 — about $150 more each month, and close to $54,000 more in total interest over the full 30 years. (Rates move constantly, so treat the exact spread as illustrative — but a higher score always points the same direction.)

Your down payment is the other big lever you control right now. A larger one shrinks the loan, can remove or reduce mortgage insurance, and sometimes nudges your rate down — see how the targets work with the down payment calculator.

Buy now, or wait to raise your score?

This is the actual decision, and it's a genuine trade-off. Buy nowand you're building equity instead of paying rent — but you're locking in a fair-credit rate and the higher payment that comes with it. Wait six to twelve monthsto move into a higher score tier, and you could shave real money off that rate — but you're renting in the meantime, and home prices and base rates might rise or fall while you do.

Two honest points cut against over-thinking it. First, nobody can predictwhere rates or prices go next — waiting for a better rate on your score can be undone by the whole market moving. Second, the rate you take today isn't necessarily forever: if your score climbs and rates fall, you can refinancelater. That's not free and it's not guaranteed, but it means buying at 640 isn't a 30-year sentence at today's rate. The choice is real, but it isn't all-or-nothing.

Common mistakes at this score

Assuming you're locked out and never checking.Plenty of people at 640 talk themselves out of even getting pre-approved. Don't guess — a pre-approval costs little and tells you your real number and rate instead of a rumor.

Only talking to one lender. Lenders weigh a 640 differently and price it differently. Getting quotes from several within a short window (it counts as a single inquiry for scoring) can swing your rate more than a small score bump would.

Draining your savings for the down payment.Emptying your accounts to put more down — and leaving nothing for emergencies — trades one risk for a bigger one. A new home comes with surprise costs; keep a cushion so a broken furnace doesn't become a missed payment.

Opening new credit right before applying. A new card or car loan in the months before you apply can drop your score and inflate your debt-to-income ratio at the worst possible moment. Keep your credit stable from a few months out until you close.

So — should you buy now?

For most people at 640 with steady income, manageable debt, and enough saved for both a down payment and an emergency fund, buying now is often reasonable. You start building equity, you can refinance if your score and rates improve, and you're not betting on an unpredictable market by waiting.

But lean toward waiting and raising your score first if any of these fits you:

1. You're close to a threshold with simple fixes. If paying down a couple of card balances or correcting a credit-report error would lift you into a higher tier in a few months, the rate savings can be worth the short wait.

2. The higher-rate payment would strain your budget.If the fair-credit payment is right at the edge of what you can handle, a lower rate isn't a luxury — it's the breathing room that keeps you out of trouble. Waiting to earn it is defensive, not greedy.

3. Buying now would wipe out your emergency fund. If the only way to buy today is to leave yourself with no cushion, wait and build one first. Homeownership without a safety net is fragile.

And if you're unsure, get pre-approved anyway. It's low-cost, it doesn't commit you to anything, and it replaces the guessing with a real number and rate to decide on — which beats talking yourself in or out of a house on a hunch.