The minimum credit score needed for a mortgage ranges from 500 (FHA with 10% down) to 620+ (conventional), depending on the loan type. But minimum requirements only tell part of the story — and understanding why a perfect credit score isn't necessary can save you months of misplaced effort. What lenders actually approve, what score gets you the best rates, and how long it takes to get there matter just as much — what lenders actually approve, what score gets you the best rates, and how long it takes to get there matter just as much.
This guide breaks down credit score requirements for every major mortgage program, explains what lenders really look for beyond the minimums, and gives you realistic timelines for reaching each threshold.
Credit Score Minimums by Loan Type (2026)
Here's a side-by-side comparison of the major mortgage programs and their credit requirements:
| Loan Type | Minimum Credit Score | Down Payment | DTI Limit | PMI Required? | Best For |
|---|---|---|---|---|---|
| FHA | 500 (10% down) or 580 (3.5% down) | 3.5%–10% | Up to 43–50% | Yes (MIP) | Lower credit scores, first-time buyers |
| VA | No official minimum (lenders typically require 580–620) | 0% | No hard cap (41% guideline) | No | Veterans and active-duty military |
| Conventional | 620 | 3%–20% | Up to 45–50% | Yes, if less than 20% down | Strong credit, higher scores |
| USDA | 640 (typical) | 0% | Up to 41% | Yes (guarantee fee) | Rural and suburban properties |
| Jumbo | 700–720+ | 10%–20%+ | Up to 43% | Varies | Loan amounts above conforming limits |
Important: These are program minimums. Individual lenders often set higher requirements called "overlays." The score your lender actually requires may be 20–40 points above the program minimum. Plus, what the 2026 FICO 10T changes mean for these requirements could shift some of these thresholds as the industry transitions to new scoring models.
FHA Loan Credit Score Requirements
FHA loans are backed by the Federal Housing Administration and are specifically designed for borrowers who don't meet conventional lending standards. They're the most accessible mortgage option for buyers with lower credit scores. For a closer look at the credit scores first-time buyers actually need, see our dedicated first-time buyer credit guide.
The Two FHA Credit Score Tiers
| Credit Score Range | Down Payment Required | Notes |
|---|---|---|
| 580 and above | 3.5% minimum | Standard FHA qualification |
| 500–579 | 10% minimum | Harder to find lenders willing to approve |
What FHA Lenders Actually Approve
While FHA allows scores as low as 500, the reality is more nuanced:
- Most FHA lenders set their minimum at 580. Finding a lender that approves below 580 requires shopping around — credit unions and smaller community banks are more likely to work with lower scores.
- 620+ gets you better terms. Borrowers above 620 have more lender options, faster processing, and potentially lower interest rates.
- Manual underwriting is possible. Borrowers with thin credit files or scores below lender overlays can sometimes qualify through manual underwriting, where a human reviews the full financial picture instead of relying solely on automated systems.
FHA Mortgage Insurance (MIP)
Every FHA loan requires mortgage insurance, regardless of your down payment:
- Upfront MIP: 1.75% of the loan amount (can be rolled into the loan)
- Annual MIP: 0.55% of the loan amount (paid monthly)
- Duration: For loans with less than 10% down, MIP lasts the life of the loan. With 10%+ down, it drops off after 11 years.
This is the main tradeoff of FHA loans — the accessibility comes with ongoing insurance costs. Many borrowers start with FHA and refinance to conventional once their score improves.
VA Loan Credit Score Requirements
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They're widely considered the best mortgage program available — if you're eligible.
No Official Minimum Score
The Department of Veterans Affairs does not set a minimum credit score. However:
- Most VA lenders require 580–620 as their overlay
- Some lenders go as low as 500 with compensating factors
- 620+ opens the most options and fastest processing
Why VA Loans Are Exceptional
| Feature | VA Loan |
|---|---|
| Down payment | 0% — no down payment required |
| PMI | None — no private mortgage insurance |
| DTI limit | No hard cap (41% guideline, but exceptions are common) |
| Funding fee | 1.25%–3.3% (waived for disabled veterans) |
| Interest rates | Typically 0.25%–0.5% lower than conventional |
VA Loan Eligibility
Credit score aside, you must meet service requirements:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- 6 years in the National Guard or Reserves
- Surviving spouse of a service member who died in the line of duty
If you're eligible, the VA loan should almost always be your first choice — even if your credit isn't perfect.
Conventional Loan Credit Score Requirements
Conventional loans aren't backed by a government agency. They're offered by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac.
Minimum Score: 620
This is a hard floor for most conventional programs. Below 620, you'll need to look at FHA or other government-backed options.
How Your Score Affects Your Rate and Costs
With conventional loans, your credit score directly impacts your interest rate and PMI costs. The difference is significant:
| Credit Score | Estimated Rate Impact | PMI Cost (monthly, on $300K loan) |
|---|---|---|
| 760+ | Best available rate | ~$75/month |
| 720–759 | +0.125–0.25% | ~$100/month |
| 680–719 | +0.25–0.5% | ~$140/month |
| 660–679 | +0.5–0.75% | ~$175/month |
| 640–659 | +0.75–1.0% | ~$215/month |
| 620–639 | +1.0–1.5% | ~$260/month |
Rates are approximate and vary by lender, loan amount, and market conditions.
A borrower with a 760 score versus a 620 score on a $300,000 loan could pay $200+ more per month between the higher rate and higher PMI. Over 30 years, that adds up to over $70,000 in additional costs.
First-Time Buyer Conventional Programs
Several programs offer 3% down payment options for first-time buyers:
- Fannie Mae HomeReady: Income limits apply (80% of area median income). Minimum 620 score.
- Freddie Mac Home Possible: Similar income limits. Minimum 620 score.
- Conventional 97: No income limits, but at least one borrower must be a first-time buyer. Minimum 620 score.
When to Choose Conventional Over FHA
Conventional loans make more sense when:
- Your credit score is 680+ (better rates, lower total costs)
- You can put 20%+ down (eliminates PMI entirely)
- You want PMI that drops off automatically at 78% LTV (unlike FHA's lifetime MIP with less than 10% down)
Read our detailed FHA vs. conventional comparison for a full breakdown.
USDA Loan Credit Score Requirements
USDA loans (backed by the U.S. Department of Agriculture) offer zero down payment for properties in eligible rural and suburban areas. Many buyers don't realize how many areas qualify — it's not just farmland.
Typical Minimum: 640
While USDA doesn't set an absolute minimum, their automated underwriting system (GUS) typically requires a 640 score. Below 640, manual underwriting is possible but significantly more difficult.
USDA Eligibility Requirements
Beyond credit score, USDA loans have two unique requirements:
- Property location: Must be in a USDA-eligible area (check the USDA eligibility map online — many suburban areas qualify)
- Income limits: Your household income can't exceed 115% of the area median income
USDA Costs
| Fee | Amount |
|---|---|
| Upfront guarantee fee | 1% of loan amount |
| Annual fee | 0.35% of loan amount (paid monthly) |
| Down payment | $0 |
The annual fee is lower than FHA's MIP, making USDA loans an excellent option if you qualify.
Jumbo Loan Credit Score Requirements
Jumbo loans exceed the conforming loan limits set by the Federal Housing Finance Agency ($766,550 in most areas for 2026, higher in expensive markets). Because they can't be sold to Fannie Mae or Freddie Mac, lenders take on more risk — and require stronger borrower profiles.
Typical Requirements
- Minimum credit score: 700–720+ (some lenders require 740+)
- Down payment: 10%–20%+ typical
- DTI: Usually capped at 43%
- Cash reserves: 6–12 months of mortgage payments in liquid assets
Jumbo loans are for borrowers with strong financial profiles purchasing higher-priced homes. If your score is below 700, focus on conventional or government-backed options first.
How Long Does It Take to Reach Each Threshold?
This is the question everyone asks — and the answer most sites give is frustratingly vague. Here are realistic timelines based on common starting positions:
Credit Score Improvement Timelines
| Starting Score | Target Score | Typical Timeline | What It Takes |
|---|---|---|---|
| 500–550 | 580 (FHA) | 3–6 months | Dispute errors, reduce utilization, make on-time payments |
| 550–580 | 620 (conventional) | 3–6 months | Pay down cards below 30%, eliminate collections |
| 580–620 | 660 (better rates) | 4–8 months | Continue utilization reduction, age accounts, build positive history |
| 620–660 | 700 (best conventional) | 6–12 months | Optimize credit mix, maintain perfect payments, reduce all utilization below 10% |
| 660–700 | 740+ (best rates) | 6–18 months | Patience — at this level, time and consistency matter most |
What Speeds Up the Timeline
- Disputing errors: Can add 20–100+ points in 30 days if errors exist
- Paying down high-utilization cards: Can add 30–50 points in 30–60 days
- Becoming an authorized user: On a family member's old, low-utilization account — can add 10–30 points quickly
What Slows Down the Timeline
- Recent late payments: A single 30-day late payment can drop your score 60–100 points and takes 12–24 months to fully recover
- Collections and charge-offs: These stay on your report for 7 years, though their impact diminishes over time
- Bankruptcy: Remains on your report for 7–10 years. FHA eligibility returns after 2 years, conventional after 4 years
- Foreclosure: Remains for 7 years. FHA eligibility returns after 3 years, conventional after 7 years
Related guide: How to Improve Your Credit Scores Before Applying for a Mortgage — a detailed action plan for every score range.
What to Do If Your Credit Score Is Too Low
If you're below the threshold for the loan program you want, here's your action plan:
Step 1: Know Your Exact Score (and Which Score)
Mortgage lenders use FICO scores (not VantageScore, which is what most free apps show). Specifically, they pull FICO scores from all three bureaus and use the middle score. If you have a co-borrower, they use the lower of the two middle scores.
Free credit monitoring apps (Credit Karma, Mint, etc.) typically show VantageScore, which can be 20–40 points different from your mortgage FICO score. To get your actual FICO scores, check myFICO.com or ask your loan officer for a pre-qualification that shows your tri-merge scores.
Step 2: Pick the Right Loan Program for Your Current Score
| Your Current Score | Best Loan Options |
|---|---|
| Below 500 | Focus on rebuilding — no standard mortgage programs available |
| 500–579 | FHA (with 10% down) — limited lender options |
| 580–619 | FHA (3.5% down), VA (if eligible) |
| 620–639 | Add conventional to your options |
| 640–679 | Add USDA (if location-eligible). Consider conventional for better long-term costs |
| 680–739 | Conventional likely your best bet. Strong VA/FHA terms too |
| 740+ | Best rates on any program. Shop aggressively for the lowest rate |
Step 3: Start Improving Today
Credit improvement isn't a mystery — it's a process. The most impactful actions you can take right now:
- Check your reports for errors and dispute anything inaccurate
- Pay down your highest-utilization credit card to below 30%
- Set up autopay on every account to ensure no missed payments going forward
- Don't apply for new credit until after your mortgage closes
- Consider a credit-builder loan if you have a thin credit file
UQUAL's Loan Readiness Academy is designed to help you improve across all four pillars of mortgage qualification — not just credit. It's free, self-paced, and built around the same factors that underwriters evaluate.
FAQ — Credit Score Requirements for Mortgages
What credit score do I need to buy a house?
The minimum credit score depends on your loan type. FHA loans allow scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no official minimum, though most lenders require 580–620. Conventional loans require at least 620. USDA loans typically require 640. However, higher scores qualify you for better interest rates and lower monthly costs.
Can I buy a house with a 580 credit score?
Yes. A 580 credit score qualifies you for an FHA loan with 3.5% down payment, and for most VA loans if you're a veteran. You won't qualify for a conventional loan (minimum 620) or USDA loan (minimum 640) at this score. Expect to pay higher interest rates and mortgage insurance compared to borrowers with higher scores.
Can I get a mortgage with a 620 credit score?
A 620 credit score opens the door to conventional loans in addition to FHA and VA. You'll qualify for more loan programs and lenders, though your interest rate will be higher than borrowers with 700+ scores. On a $300,000 loan, the rate difference between a 620 and 740 score could cost you over $150 per month.
What is the minimum credit score for an FHA loan?
The FHA program allows credit scores as low as 500 with a 10% down payment, or 580 with a 3.5% down payment. However, most FHA lenders set their own minimum at 580, and some require 620. If your score is between 500 and 579, you'll need to find a lender that specifically works with lower-score FHA borrowers.
Do VA loans have a credit score requirement?
The VA does not set a minimum credit score. However, individual VA lenders set their own minimums, typically between 580 and 620. Some specialty VA lenders go as low as 500 with strong compensating factors like low DTI or significant cash reserves. The VA loan is generally the most flexible program for credit score requirements.
How much does credit score affect mortgage interest rates?
Significantly. On a conventional loan, the difference between a 620 and a 760+ score can mean 1.0%–1.5% higher interest rate. On a $300,000, 30-year mortgage, that translates to roughly $150–$250 more per month, or $54,000–$90,000 more over the life of the loan. Improving your score before applying can save you tens of thousands of dollars.
How long does it take to improve credit score from 580 to 620?
For most borrowers, moving from 580 to 620 takes 3–6 months with consistent effort. The fastest improvements come from paying down high-utilization credit cards (below 30%), disputing errors on credit reports, and making all payments on time. If you have errors on your report, disputes can sometimes produce results within 30 days.
Should I wait to improve my credit score or buy now?
It depends on your market and financial situation. If you're close to a threshold that unlocks a better loan program or significantly better rate (like going from 610 to 620 for conventional eligibility, or from 680 to 740 for the best rates), waiting a few months can save you thousands. But if home prices in your market are rising faster than your savings, buying sooner with an FHA loan and refinancing later may be the smarter financial move.
UQUAL Team
Financial Education Team
The UQUAL Team creates educational content to help aspiring homeowners become loan-ready through financial literacy, credit building, and mortgage preparation.
