What Credit Score Do You Need for a Mortgage?
Your credit score is the single biggest lever on your mortgage interest rate. A 100-point difference can cost — or save — tens of thousands of dollars over the life of a loan.
Minimums by loan type
Conventional
Minimum
620
Standard mortgage backed by Fannie Mae / Freddie Mac. Best rates at 740+.
FHA Loan
Minimum
500–580
Government-backed. 500–579 requires 10% down. Includes mandatory mortgage insurance.
VA Loan
Minimum
No official minimum
For eligible veterans and active military. Lenders typically set their own floor around 580–620.
USDA Loan
Minimum
640
For rural and suburban properties. Requires no down payment but income limits apply.
How score affects your rate
Example: $400,000 30-year fixed conventional mortgage. Rate estimates are illustrative — actual rates vary by market conditions.
760–850
~6.2% APR · $2,449/mo
$481,640 total
720–759
~6.5% APR · $2,528/mo
$509,880 total
680–719
~6.7% APR · $2,581/mo
$529,160 total
640–679
~7.1% APR · $2,687/mo
$567,320 total
620–639
~7.5% APR · $2,797/mo
$607,000 total
The difference between the top and bottom tier: over $125,000 in total interest over 30 years.
The 6-month pre-mortgage checklist
✓Pull all 3 credit reports and dispute any errors (give yourself 60+ days for disputes to resolve)
✓Pay down credit card balances to below 10% utilization
✓Do not open any new credit accounts — each hard inquiry raises a flag
✓Do not close old accounts — it reduces available credit and average age
✓Make every payment on time — a single 30-day late during this window is catastrophic
✓Avoid co-signing any new loans for others
✓Keep your employment history stable — lenders want 2 years of employment
When to get pre-approved
Get pre-approved before you start seriously shopping for homes. Pre-approval requires a hard inquiry, but multiple mortgage inquiries within a 45-day window count as a single inquiry under FICO 8.
Use pre-approval to know your actual rate tier — not an estimate. It also makes your offer competitive in a market where sellers prefer pre-approved buyers.