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+.

Each program has very different income, down payment, and PMI rules on top of the credit score. Our complete mortgage types guide compares them side by side so you can match your score to the loan you'll actually qualify for.

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.

What each score band actually costs

Across 30 years, the gap between a 640 and a 760 score on this loan is roughly $97,000. Nothing else on a mortgage application is worth that much for so little effort.

Worked example: 90 days of score repair

Dan is at 648, mostly from 71% card utilisation on $9,400 of balances. He pays $5,600 down over three months, leaves the accounts open, and disputes one late payment reported in error.

• Utilisation drops from 71% to 28%
• Score moves to about 712 at the next reporting cycle
• Rate quote improves from 7.55% to 6.70% — about $200/month on his loan

Three months of focused work bought a better rate than any amount of lender shopping would have. Practical steps are in how to improve your credit score fast.

Related questions

Do lenders use the highest of my three scores?

No. Most use the middle score of the three bureaus, and on a joint application, the lower of the two applicants' middle scores.

How far in advance should I stop opening credit?

At least six months before applying, and absolutely nothing new between pre-approval and closing.

Which loan type is most forgiving?

FHA down to 580, VA with lender discretion. Compare in FHA vs conventional loan and mortgage types explained.

Key takeaways

• 620 is the usual conventional floor; 740+ unlocks the best pricing.
• Each score band is worth roughly 0.25–0.5% on your rate.
• Utilisation is the fastest lever — paying balances below 30% can move a score in one cycle.
• Run the payment difference through the mortgage calculator before deciding to delay a purchase.

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