What Credit Score Do You Need to Buy a House in Michigan?
If you’re a first-time homebuyer in Michigan — or planning a move here from another state — one of the most common questions we hear is:
“What kind of credit score do I need to get approved for a mortgage?”
It’s a great question, and the answer depends a bit on the type of loan you’re going for. But here’s the good news: you don’t need perfect credit to buy a home.
At JPAL Mortgage, we’re all about helping people understand their options in plain English — so let’s break it down.
First Things First: What Is a Credit Score, Really?
Your credit score is a number between 300 and 850 that shows how reliable you’ve been with credit in the past. The higher your score, the better your chances of getting approved for a loan with a great interest rate.
Here’s what lenders typically look for:
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780 and up – Excellent credit (best rates)
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700–780 – Good credit
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620–699 – Fair credit (totally workable!)
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580–619 – OK for some government loans
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Below 580 – Doable in some cases, but expect a few more hurdles
Don’t panic if you’re not in the 700s — we help buyers with all kinds of scores.
Minimum Credit Score by Loan Type
Let’s look at the most common types of home loans and what kind of credit score each one typically requires:
✅ FHA Loans (Great for First-Time Buyers)
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Minimum score: 580
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Low down payment (3.5%)
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Flexible credit requirements
✅ Conventional Loans
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Minimum score: 620
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Ideal if you have a stronger credit profile
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May offer lower monthly payments with a bigger down payment
✅ VA Loans (for Veterans)
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No official minimum, but 620 is standard with most lenders
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$0 down, no private mortgage insurance
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Amazing option for eligible veterans and service members
Can You Buy a House With a Score Below 580?
Yes — but it gets a bit trickier. Some lenders will work with scores as low as 500, but you’ll usually need:
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A larger down payment (often 10% or more)
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Strong income or low monthly debt
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No recent bankruptcies or foreclosures
If you’re in this range, don’t assume you’re out of the game. We’ve helped buyers who thought they had no chance qualify — and buy — in just a few months.
How to Boost Your Credit Score Before You Buy
Here are a few quick ways to improve your score (sometimes in just a few weeks!):
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Pay bills on time – Payment history is the biggest factor
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Use less than 30% of your credit limits – Keep those balances low
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Don’t open new credit accounts before applying for a mortgage
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Dispute errors on your credit report — they’re more common than you think
You can check your credit for free at AnnualCreditReport.com
Need help with a game plan? We’re happy to take a look and point you in the right direction — no pressure, no sales pitch.
How We Help First-Time Buyers in Michigan
At JPAL Mortgage, we believe your credit score shouldn’t be a mystery — or a roadblock. When you work with us, we’ll:
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Explain where your score stands and how it affects your loan options
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Help you improve your credit if needed (yes, really)
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Match you with the best loan for your unique situation
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Keep you informed every step of the way
We’re not here to judge your credit — we’re here to help you use it to get into a home.
It’s important to note that all loans are subject to full underwriting and approval by a lender.
Let’s Take a Look at Your Score Together
You don’t need to have it all figured out before reaching out. Whether you’re ready to buy now or just starting to explore, we’re happy to talk.
Book a free call with us and let’s take the guesswork out of homebuying.
Grab your free Ultimate Credit Guide here! (downloadable PDF)
JPAL Mortgage is proudly based in Michigan, where its two owners were born and raised! We love this state and have traveled it far and wide. It’s a passion of ours to help make a smooth landing here in Michigan!
JPAL Mortgage – Your best friend in home finance.
All loans require complete underwriting approval, including satisfactory appraisal and clear title work. Interest rates and closing costs are subject to change. NMLS ID #2189752 | Equal Housing Opportunity