What Credit Score Do You Need for a Mortgage?
Your credit score is one of the first things a lender checks when you apply for a mortgage. It signals how reliably you've repaid debt in the past and helps determine whether you qualify, what interest rate you're offered, and how much your loan will cost over time. There is no universal cutoff, but each loan program has general expectations.
Typical Minimum Credit Scores by Loan Type
Requirements vary by program and lender, but these are widely cited general minimums:
- Conventional loans usually require a score of about 620 or higher.
- FHA loans often accept scores as low as 580 with a 3.5% down payment, and sometimes lower with a larger down payment.
- VA and USDA loans don't set a strict federal minimum, but many lenders look for around 620.
A higher score generally expands your options and improves your terms. Lenders also consider these "overlays" on top of the official minimums, so individual requirements can be stricter.
How Your Credit Score Affects Your Interest Rate
Beyond simply qualifying, your score has a direct effect on your interest rate. Borrowers with higher scores are seen as lower risk and typically receive lower rates. Even a modest rate difference can add up to thousands of dollars over the life of a 30-year loan.
Scores are often grouped into tiers, and moving up a tier — say from the 660s into the 700s — can meaningfully lower your rate. This is why improving your score before applying is often worthwhile, even if you already meet the minimum.
To see how a rate change affects your monthly payment, try the mortgage payment calculator.
What Lenders Look At Besides Your Score
Your credit score doesn't tell the whole story. Lenders also weigh:
- Debt-to-income ratio — your monthly debt payments compared to income. Many programs prefer a debt-to-income ratio under about 43%.
- Down payment — a larger down payment can offset a lower score.
- Employment and income history — steady, documented income strengthens your application.
- Cash reserves — savings left after closing reassure lenders.
A strong overall profile can sometimes compensate for a credit score near the minimum.
How to Improve Your Score Before Applying
If your score isn't where you'd like it, several habits can help over a few months:
- Pay every bill on time — payment history is the largest factor.
- Lower your credit utilization — keep balances well below your limits.
- Avoid opening or closing accounts right before applying.
- Check your credit reports for errors and dispute any you find.
Improving your score takes time, so start early. Once you're ready, estimate a comfortable price range with the how much house can I afford calculator before you begin shopping for a loan.
