The minimum credit score for a mortgage depends entirely on which loan program you're applying for — and which lender you choose within that program. FHA accepts 500; conventional requires 620; VA and USDA technically have no minimum but lenders typically require 580–640. This guide gives you the complete picture for every loan type, plus shows exactly how your score affects your mortgage rate.
FHA minimum — the lowest credit score accepted for any mainstream mortgage
Conventional loan minimum — required for Fannie Mae and Freddie Mac loans
Score where you get the best available mortgage rates across all loan types
Rate difference between 620 and 740 score — worth $30,000+ over 30 years on $300K loan
| Loan Type | FHA Min | Lender Typical Min | Best Rate Score | Down Payment | MI Type |
|---|---|---|---|---|---|
| FHA | 500 | 580–620 | N/A (MIP fixed) | 3.5% (580+) | Permanent MIP |
| Conventional (Fannie/Freddie) | 620 | 640–660 | 740+ | 3%–20% | Cancellable PMI |
| VA Loan | None (HUD) | 580–620 | 740+ | 0% | None |
| USDA | None (USDA) | 580–640 | 740+ | 0% | Guarantee fee |
| Jumbo | 700+ | 720–740 | 760+ | 10%–20% | Varies |
| Portfolio / Non-QM | None | 500–580 | Varies | 20%–40% | High rates |
Your credit score is the single biggest factor in your mortgage interest rate. Here's what the same $300,000 conventional loan costs across different score tiers:
| FICO Score | Tier | Approx Rate | Monthly P&I | Total Interest (30yr) | vs 740 Score |
|---|---|---|---|---|---|
| 760–850 | Excellent | ~6.5% | $1,896 | ~$382,600 | Baseline |
| 700–759 | Good | ~6.7% | $1,933 | ~$396,000 | +$13,400 |
| 680–699 | Near Good | ~7.0% | $1,996 | ~$418,600 | +$36,000 |
| 660–679 | Fair | ~7.3% | $2,058 | ~$441,000 | +$58,400 |
| 640–659 | Low Fair | ~7.8% | $2,159 | ~$477,200 | +$94,600 |
| 620–639 | Min Conv. | ~8.2% | $2,247 | ~$508,900 | +$126,300 |
Every 20-point credit score improvement typically unlocks a lower rate tier. Moving from 639 to 640, 659 to 660, 679 to 680 — each 20-point threshold can save $30–$100/month and $10,000–$36,000 over the life of the loan. Know exactly which tier you're in and how many points separate you from the next tier.
Credit utilization is 30% of your FICO score. Paying a $4,500 balance down to $300 on a $5,000 limit card can raise your score 40–60 points within 30 days — the fastest score improvement available. If you're close to a mortgage qualifying threshold, this is the first action to take.
Approximately 25% of credit reports contain errors significant enough to affect a score. Common errors: incorrect late payments, wrong account balances, accounts that aren't yours, and debts reported past their 7-year expiration. Each corrected error can add 10–50 points. Get your free report at AnnualCreditReport.com and file disputes directly with each bureau.
Being added to a family member's old credit card with perfect payment history can add years of positive payment history to your report immediately — potentially boosting your score 20–50 points without any account activity on your part.
Length of credit history is 15% of your FICO score. Closing old credit card accounts before a mortgage application can drop your score 10–30 points by reducing your average account age. Never close accounts in the 12 months before applying for a mortgage.
FHA loans accept a minimum of 500 (with 10% down) or 580 (with 3.5% down). VA and USDA loans technically have no minimum but lenders typically require 580–640. Conventional loans require a minimum of 620. Jumbo loans typically require 700–720+.
No. Lenders set their own 'overlays' above the program minimums. FHA allows 500, but many FHA lenders require 580 or 620. Always shop multiple lenders — requirements vary significantly and one lender's denial is not a universal denial.
740+ gets the best rates on conventional, VA, and USDA loans. FHA rates are less score-sensitive because MIP rates are fixed — but lenders still offer slightly better pricing above 680. The jump from 680 to 740 is the most impactful for rate reduction.
Significantly. On a $300,000 30-year conventional loan: a 760 score might get 6.5% APR ($1,896/month); a 620 score might get 8.2% APR ($2,247/month). That $351/month difference = $126,360 more over 30 years for the same loan. Credit score is the most impactful financial variable in a mortgage.
Yes — FHA loans accept 580 with 3.5% down. USDA and VA loans are also typically available at 580 for eligible buyers. At 580, you'll pay higher rates than prime borrowers, and FHA's permanent MIP adds to the long-term cost. But homeownership at 580 is absolutely achievable.
Our mortgage calculator shows exact payments at any rate — calculate what today's score costs vs a 740 score.
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⚠ Disclaimer: Mortgage rates and credit score tiers are illustrative estimates. Actual rates vary by lender, market conditions, loan type, and full credit profile. Not financial advice. See our Disclaimer and Privacy Policy.