Credit Score Requirements for Mortgages

Credit scores are three-digit numbers that summarize your credit history and help lenders assess the risk of lending to you. Most mortgage lenders use FICO scores, which range from 300 to 850. A higher score generally means better loan terms, including lower interest rates and more program options.

Minimum Credit Scores by Loan Type

FHA Loans

580+ for 3.5% down payment

500–579 may qualify with 10% down payment

FHA guidelines set these minimums, though individual lenders may have higher requirements (called "overlays").

Conventional Loans

620+ is the typical minimum

Fannie Mae and Freddie Mac generally require a minimum FICO score of 620. Higher scores unlock better pricing and may reduce PMI costs.

VA Loans

No official VA minimum

The VA does not set a minimum credit score requirement. However, most VA-approved lenders use their own minimums, commonly around 620, as part of their underwriting criteria.

USDA Loans

640+ for streamlined processing

A 640 score allows automated underwriting through USDA's GUS system. Borrowers below 640 may still qualify through manual underwriting with additional documentation.

How Your Credit Score Affects Your Mortgage

Interest rate: Higher scores are associated with lower interest rates, which can save substantial money over the life of the loan
Loan approval: Meeting the minimum score is necessary but not sufficient—lenders also evaluate income, debt-to-income ratio, and other factors
Mortgage insurance costs: On conventional loans, borrowers with higher scores typically pay lower PMI premiums
Program eligibility: Some loan products and down payment assistance programs have specific credit score thresholds

How to Improve Your Credit Score

Pay bills on time
Payment history is the single most important factor in your credit score. Set up autopay or reminders to avoid missed payments.
Reduce credit card balances
Aim to keep your credit utilization below 30% of your total available credit. Lower utilization is better.
Avoid opening new credit accounts before applying
New credit inquiries and accounts can temporarily lower your score. Wait until after closing to open new credit lines.
Check your credit reports for errors
You are entitled to a free credit report from each of the three major bureaus at AnnualCreditReport.com. The FTC has noted that errors on credit reports are not uncommon and can negatively affect your score.
Keep old accounts open
The length of your credit history matters. Keeping older accounts open, even if you rarely use them, can help your score.

If your credit score is below the minimum for your desired loan program, don't give up. A qualified loan officer can review your situation, suggest steps to improve your score, and help you explore alternative programs that may be available to you.

Credit Score Requirements