Many would-be homebuyers are not sitting out of the market because they lack the desire to own a home. They are sitting out because they believe they cannot qualify. For a large number of people, that belief comes down to one thing: their credit score.

A recent Bankrate survey found that two out of every five Americans believe you need excellent credit to qualify for a mortgage. That misconception shows up again and again when renters are asked why they have not purchased a home yet. Many say their credit is not good enough.

Maybe you feel the same way. You check your score, see it is not where you hoped it would be, and assume homeownership is out of reach. But here is the truth. You do not need perfect credit to buy a home. In fact, many buyers today are qualifying with scores far below what most people assume.

Why the Myth Exists

Part of the confusion comes from the fact that the typical homebuyer today does have a strong credit score. According to data from the NY Fed, the median credit score for all buyers is 775. That number can be intimidating. It makes people think they need to be in the same range to qualify.

But that is not how lending works. The median score simply reflects the middle point of all buyers. It does not represent the minimum requirement. It does not mean lenders expect every buyer to have a score in the high 700s.

When you look more closely at the data, the picture becomes much clearer. A meaningful share of recent buyers secured mortgages with scores well below that median. About ten percent of buyers had scores around 660. Some were slightly higher, some were slightly lower, but the median in that lowest tenth percentile was in that range.

This means one important thing. Even if your score is not perfect, you are not automatically disqualified. Many buyers are purchasing homes with scores in the 600s. You might be able to do the same.

There Is No Universal Cutoff Score

Another reason the myth persists is that people assume there is a single magic number that determines whether you qualify for a mortgage. But according to FICO, that is not how the system works.

Lenders use credit scores as part of their decision-making process, but each lender has its own approach. Some are more flexible. Some specialize in helping buyers with lower scores. Some weigh other factors more heavily, such as income stability, debt-to-income ratio, or savings.

There is no universal cutoff score that applies to every lender. There is no single number that guarantees approval or denial. Instead, lenders look at your entire financial picture. Your credit score matters, but it is only one piece of the puzzle.

Why Talking to a Lender Matters More Than Guessing

Many would-be buyers disqualify themselves before they ever speak to a professional. They assume their score is too low, so they never take the first step. But that assumption can cost them years of opportunity.

A trusted lender can look at your situation and tell you what is possible. They can explain which loan programs fit your profile. They can show you how close you are to qualifying. They can even help you create a plan to improve your score if needed.

Sometimes buyers discover they are already in a position to purchase. Other times they learn they are only a few points away. Either way, the clarity is empowering. You do not need to have everything figured out before you start the conversation. You simply need to be willing to explore your options.

Why Your Score Does Not Have to Be Perfect

Your credit score is important, but it does not need to be flawless. Here is why.

Lenders Expect Imperfect Credit

Most people do not have perfect credit. Lenders know this. They work with buyers who have late payments, medical collections, or old debts. What matters most is your overall pattern of responsibility and your ability to repay the loan.

Loan Programs Offer Flexibility

Different loan programs have different credit requirements. Some conventional loans accept scores in the mid-600s. FHA loans often allow even lower scores. VA loans offer flexible options for eligible buyers. There is no one-size-fits-all requirement.

Your Score Can Improve Faster Than You Think

Credit scores are not fixed. They change as your financial habits change. Paying down balances, correcting errors, and making consistent on time payments can raise your score in a matter of months.

Other Factors Can Strengthen Your Application

A strong income, a stable job history, or a larger down payment can help offset a lower score. Lenders look at the full picture, not just one number.

The Real Barrier Is Often Fear, Not Credit

Many renters assume they cannot buy because of their credit. But often the real barrier is uncertainty. They do not know what lenders look for. They do not know what score they need. They do not know what options exist.

This uncertainty leads to hesitation. And hesitation leads to missed opportunities.

But here is the encouraging part. Once people understand the truth about credit requirements, the path to homeownership becomes much clearer. The fear fades. The possibilities grow.

What You Can Do Right Now

If you are unsure whether your credit is strong enough to buy a home, here are steps you can take.

Check Your Credit Report

Look for errors or outdated information. Many reports contain mistakes that can be corrected.

Talk to a Lender

A lender can give you real answers based on your actual financial profile.

Create a Plan

If your score needs improvement, a lender can help you build a roadmap.

Stay Consistent

Small habits like paying bills on time and lowering credit card balances make a big difference.

Bottom Line

Your credit score matters, but it does not have to be perfect. Many buyers are qualifying with scores in the 600s. You might be closer to homeownership than you think.

If credit has been the reason you have been waiting, it may be time to take another look at your options. A conversation with a local lender can give you clarity, confidence, and a realistic path forward. You do not need to have everything figured out to begin.