What Credit Score Do You Need for a Mortgage?

Minimum credit score by loan type

• Conventional: 620 minimum, 740+ for best rates.
• FHA: 580 with 3.5% down; 500 with 10% down.
• VA: officially no minimum, most lenders require 580–620.
• USDA: typically 640.
• Jumbo: usually 700+, often 740+.

How rate changes with score (typical 30-year fixed)

Approximate rate adjustments at a baseline 6.5% market rate:

• 760+: best rate — roughly market or below.
• 740–759: ~+0.125%.
• 700–739: ~+0.375%.
• 660–699: ~+0.75%.
• 620–659: ~+1.0–1.5% or more.

On a $300K loan, the gap between a 760 and a 660 borrower can be ~$60K–$100K in extra interest over 30 years.

How to raise your score before applying

1. Pay down credit card balances to under 30% (ideally under 10%) of each card's limit.
2. Don't close old accounts — length of credit history matters.
3. Don't open new credit in the 6 months before applying.
4. Dispute errors on your credit report (do this for free at AnnualCreditReport.com).
5. Make every minimum payment on time — this is the single biggest factor.

Other factors lenders check

• Debt-to-income ratio (typically 36–45% max).
• Down payment size (more is better).
• Two years of stable employment history.
• Cash reserves after closing.
• Recent late payments, collections, or bankruptcy.

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Frequently Asked Questions