Credit Score Needed for Each Mortgage Loan Type
Last updated: October 2026 · Editorial standards
Your credit score is one of the most important factors in mortgage approval — and in determining your interest rate. Here’s exactly what you need for each major loan program.
How Mortgage Credit Scores Work
Mortgage lenders pull all three credit bureaus and use specific FICO score versions:
- FICO 2 from Experian
- FICO 5 from Equifax
- FICO 4 from TransUnion
For a single borrower, lenders use the middle of the three scores. If two borrowers are on the loan, lenders use the lower of the two middle scores.
This is important: if your score is 720 and your co-borrower’s score is 640, the qualifying score is 640.
Credit Score Minimums by Loan Type
Conventional Loans
- Minimum: 620
- For best rates: 740–760+
- PMI and pricing adjustments: Apply for scores below 740
Conventional loans have «loan level price adjustments» (LLPAs) — the lower your credit score, the higher your rate or fees. The jump in cost between a 679 and 680, or between 719 and 720, can be significant.
FHA Loans
- Minimum for 3.5% down: 580
- Minimum for 10% down: 500
- Most lenders overlay: 580–620 (many lenders add their own minimum above FHA’s)
- For competitive rates: 620+
FHA is the most accessible program for lower credit scores. The rate difference between a 580 and 620 on an FHA loan is meaningful — try to get above 620 if possible.
VA Loans
- Official VA minimum: None
- Typical lender minimum: 580–620
- For best rates: 680+
VA loans don’t have an official credit score requirement, but virtually all lenders impose their own minimum. The VA guarantee helps lenders accept lower scores than they might on conventional loans.
USDA Loans
- Minimum: 640 for automated approval
- Below 640: Manual underwriting possible (less common, more requirements)
- For competitive rates: 660+
USDA’s automated underwriting system (GUS) typically requires 640 for an automated approval. Lower scores require manual underwriting and stronger compensating factors.
Jumbo Loans
- Minimum: 700–720 at most lenders
- For best rates: 740–760+
- Some lenders: 680 minimum for smaller jumbo loans
Jumbo loans carry strict credit requirements because they’re not backed by government agencies or purchased by Fannie Mae/Freddie Mac.
How Credit Score Affects Your Interest Rate
Here’s the real impact. The same loan will carry different rates at different credit score tiers:
Example: $350,000 30-year conventional loan (illustrative rates)
| Credit Score Range | Approximate Rate | Monthly Payment |
|---|---|---|
| 760–850 | 7.00% | $2,329 |
| 700–759 | 7.25% | $2,388 |
| 680–699 | 7.50% | $2,447 |
| 660–679 | 7.875% | $2,537 |
| 640–659 | 8.375% | $2,659 |
| 620–639 | 8.875% | $2,783 |
The difference between a 620 and 760 score on this loan: $454/month — or $163,000 over 30 years.
What Matters Beyond the Minimum Score
Meeting the minimum score gets you in the door — but it doesn’t determine your rate. Lenders evaluate your complete credit profile:
- Payment history: Any late payments in the last 24 months
- Credit utilization: Balances relative to credit limits (ideally below 30%)
- Length of credit history: Older accounts help
- Credit mix: Mix of revolving (credit cards) and installment (loans) accounts
- Recent applications: Too many new accounts signal risk
What to Do If Your Score Is Too Low
Short-term improvements (30–90 days):
- Pay down credit card balances below 30% of limits (highest impact)
- Dispute any errors on your credit report
- Ask credit card companies to increase your limit (reduces utilization without spending more)
- Don’t close old accounts or open new ones
Medium-term improvements (3–12 months):
- Establish a consistent on-time payment record
- Keep all accounts current
- Time your application after derogatory items pass their peak impact
Long-term improvements (12–24 months):
- Recover from collections, late payments, or major derogatory marks
- Build credit history through responsible use
Key Takeaways
The minimum score gets you approved — the maximum score saves you money. Even improving from 680 to 740 can lower your rate by 0.5–0.75% on a conventional loan. If your score is close to a pricing tier threshold, it may be worth spending 2–3 months improving it before applying.
Frequently Asked Questions
What if my credit score is different from what the lender pulls? It probably will be. Consumer credit monitoring services (Credit Karma, etc.) use VantageScore, not the FICO versions lenders use. The scores can vary significantly. Your lender’s FICO score is what matters for mortgage purposes.
Can I get a mortgage with no credit history? Possible through «non-traditional credit» underwriting — documenting rent payments, utility bills, and other payment history manually. FHA and some lenders accept this; ask specifically.
Does an authorized user account help my mortgage score? Generally yes — if you’re an authorized user on an account with a long positive history and low utilization, it typically helps your score. However, lenders sometimes remove authorized user accounts from consideration if they suspect it was done artificially.
What’s the best credit score to aim for before applying? For conventional loans, 740 is the sweet spot where most pricing adjustments phase out. For FHA, getting above 620 moves you out of the highest rate tiers. VA: 680+ for best lender pricing.
