2022 Boise Idaho Real Estate Blog

What Credit Score Do I Need to Buy a House in 2022 and 2023?

Main Treasure Valley Life

We are officially halfway through 2022, and a lot has changed in the real estate world—including what the average credit score for a homebuyer is. We will break down what this score is, as well as why this is a good thing. 

One common question our team gets—especially from first-time homebuyers— is “what credit score do I need to buy a house?” The last time we answered this question, the average credit score was 698. Halfway through 2022, this score is now 716, according to Credit Summit. Why has this changed?

The main reason why this has changed is the part of the reason why housing won’t be the cause of the next recession and why it’s highly unlikely that homes will lose value when the next one comes: today’s lending standards are tighter, meaning today’s buyers are much more qualified to buy a house. 

When you break it down, having a higher credit score is proving you have a record of being able to take on debt and pay it back. A lender seeing this helps them feel confident that you will pay back the money they lend you.

Don't get discouraged if you don't have a credit score of 716 or above. This is the average score, meaning 50% of Americans have a lower score and 50% have a high score. If your credit score is around 698 as we previously reported, you are still in a good position and have a score in the “good” range. 740-799 is considered the “very good” range. In fact, 46% of Americans have a FICO score between 670 and 799, according to Experian.

The average credit score to buy a home in 2023 is likely to go up a few points from 716, but it likely won't be a drastic jump.

Click here to see our breakdown of easy ways to improve your credit score and save up to buy a house. Here is a quick summary of that credit breakdown. Disclaimer: we are not financial planners, so we can't offer personalized advice for your own financial situation, but we can provide general guidance

  • Paying more than the minimum amount on credit cards
  • Paying off credit cards entirely and keeping the balance low (below 33% is the rule of thumb)
  • Making multiple payments above the minimum per month on debts
  • Not opening new lines of credit
  • Not closing credit lines
Posted by AndrewS at 7/1/2022 12:06:00 AM

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