The number that gates the biggest purchase of your life
Your credit score doesn't just determine whether you get a mortgage — it determines what that mortgage costs you over 30 years. A 40-point difference in score can mean tens of thousands of dollars in extra interest. Knowing the exact thresholds before you apply puts you in control.
Conventional loans
Conventional loans are backed by Fannie Mae or Freddie Mac and issued by private lenders. The baseline minimum credit score is 620. At 620, you'll qualify, but you'll pay for it: expect a higher interest rate and mandatory private mortgage insurance (PMI) if your down payment is under 20%.
Here's how score tiers typically shake out for conventional loans:
- 740+ — Best available rates. Lenders compete for you. PMI costs are minimal even at lower down payments.
- 700–739 — Good rates, slightly above the best tier. Most buyers land here.
- 660–699 — Noticeably higher rates. PMI premiums increase.
- 620–659 — You'll qualify, but the rate premium over a 740 borrower can be 1%–1.5% or more. On a $400,000 loan, that's a significant long-term cost.
Under 620? Most conventional lenders won't approve the loan at all.
FHA loans
FHA loans are insured by the Federal Housing Administration and are specifically designed for buyers with lower scores or smaller down payments. The credit score requirements are more forgiving:
- 580 or above — You can put as little as 3.5% down.
- 500–579 — You can still qualify, but the minimum down payment jumps to 10%.
- Below 500 — FHA won't insure the loan. You're outside the program.
FHA loans carry mortgage insurance premiums (MIP) regardless of your down payment — both an upfront premium (1.75% of the loan) and an annual premium (0.45%–1.05% depending on the loan terms). This is different from conventional PMI, which can be removed once you hit 20% equity. FHA MIP on loans originated after 2013 with less than 10% down stays for the life of the loan.
The lower score threshold is valuable, but run the MIP math before assuming FHA is the better deal.
VA loans
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They're guaranteed by the Department of Veterans Affairs.
The VA itself doesn't set a minimum credit score. Individual lenders do — and most require a minimum of 620, though some will go to 580. VA loans offer major advantages that no other program matches:
- No down payment required
- No private mortgage insurance
- Competitive interest rates even at lower score tiers
- A funding fee (typically 1.25%–3.3% of the loan) that replaces MIP/PMI
If you're VA-eligible and your score is between 580–620, shopping multiple lenders is worth it. Requirements vary significantly.
USDA loans
Worth mentioning: USDA loans for rural and suburban properties also offer zero down payment. Most USDA lenders want at least a 640 score, though manual underwriting can go lower. If the property is in an eligible area, it's worth looking at alongside VA and FHA.
What actually happens at the lender
When a mortgage lender pulls your credit, they pull all three bureaus — Equifax, Experian, and TransUnion — and use the middle score of the three for qualification. If there are two borrowers, they use the lower of the two middle scores.
This means it's worth checking all three bureau reports before applying. A single error on one bureau can drag down your qualifying score.
The rate difference is real money
To put it in concrete terms: on a $350,000 30-year conventional mortgage, a borrower at 760 might get a 6.5% rate. A borrower at 650 might get 7.5%. That's roughly $225 more per month and about $81,000 more over the life of the loan.
What to do before applying
Pull your reports from all three bureaus at AnnualCreditReport.com. Look for any errors — wrong account status, incorrect balances, accounts that aren't yours. Dispute anything inaccurate before applying. Even one corrected error can move your score enough to cross into a better rate tier.
If your score is close to a tier threshold (say, 695 and trying to get to 700), paying down revolving balances is the fastest lever. Utilization changes can reflect in your score within 30–45 days.