Can you buy a house with 800 credit score?
Can I buy a house with an 800 credit score? Yes. An 800 credit score is considered “exceptional” by FICO and is in the highest tier of scores.
Here are just a few advantages to having an 800+ credit score: You have a better chance at getting approved for a home loan. You may qualify for a low mortgage rate. You have more power to negotiate your interest rate and closing costs.
If you qualify for a loan and can afford it, there isn't necessarily a limit to how much you can borrow with an 800 credit score. You may be able to take out: A personal loan for $100,000. A car loan for $250,000.
| FICO Score | National average mortgage APR |
|---|---|
| 660 to 679 | 7.291% |
| 680 to 699 | 7.077% |
| 700 to 759 | 6.900% |
| 760 to 850 | 6.678% |
How rare is an 800 credit score? An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
A 750 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
Applicants with “very good” scores (740-799) are having an easier time accessing credit, with 44 percent facing a loan denial. Just 29 percent of applicants with “exceptional” credit (800-850) have been rejected.
Your 800 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
In fact, lenders or dealerships might review several requirements, including: Credit score: You might need a credit score of at least 740 to be considered for a 0% APR loan. The minimum credit score depends on the dealership and the car you're interested in purchasing.
Can you get a FHA loan with a 800 credit score?
You don't need a score as high as 800 to buy a home (though it certainly helps). Some types of loans have no minimum credit score requirements, and FHA loans can be had with a score as low as 500 for qualified borrowers.
Eligible borrowers typically include those with debt lower than 41 percent of income, a fairly good credit score above 620, no previous home ownership in the last 36 months, primary residence intent for the property being bought, and the overall financing is 97 percent maximum.
The bottom line
What is a perfect credit score? If you have an 850 credit score, your credit is perfect — but any credit score over 800 is considered exceptional, and that's just as good.
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
Only a little over 20% of consumers ever earn a score of 800 or higher. Why? People with 800 credit scores use credit differently than the vast majority of credit users. Sure, they do some of the same things you do: never miss a payment, try to keep their credit utilization low, and scan their credit report for errors.
| Average FICO 8 Score by Generation | ||
|---|---|---|
| Generation | 2022 | 2023 |
| Generation Z (ages 18-26) | 679 - Good | 680 - Good |
| Millennials (27-42) | 687 - Good | 690 - Good |
| Generation X (43-58) | 707 - Good | 709 - Good |
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
At 20 years old, you will likely have a lower score due to the shorter length of credit history and income. The average FICO credit score for this age range is around 679, which is considered "good" or "very good" but is relatively lower than someone older with more credit history.
Membership in the 800+ credit score club is quite exclusive, with fewer than 1 in 6 people boasting a score that high, according to WalletHub data.
Does buying a home boost your credit score?
Once you actually get the loan, you might have a short-term dip of 15 – 40 points. If you consistently make monthly payments on time, though, you'll likely see your credit score recover and even improve.
Actions that can lower your credit score include late or missed payments, high credit utilization, too many applications for credit and more. Experian, TransUnion and Equifax now offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com.
It is possible to get a $100,000 personal loan, but it's difficult. Lenders don't typically offer loans as large as $100,000, with most banks and credit unions offering a maximum of $50,000. To qualify for a $100,000 personal loan, you'll need a credit score of 720 or above and a high income.
Ask Someone To Co-Sign
Getting a personal loan with a co-signer that has a strong credit score and a solid income can boost your application. Your co-signer – ideally, a family member or close friend – will apply alongside you, and you'll both be responsible for repayment of the loan.
If you decide that you don't want or need a loan once you have received the funds, you have two options: Take the financial hit and repay the loan, along with origination fees and prepayment penalty. Use the money for another purpose, but faithfully make each monthly payment until the loan is paid in full.
