Key Takeaways
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A credit score of 620 is the minimum for most conventional loans, though government-backed loans may allow lower.
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Higher credit scores unlock better mortgage rates, lower fees, and fewer loan restrictions.
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Payment history and credit utilization are the two most impactful credit score factors.
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Improving your credit before applying can significantly increase your mortgage approval odds.
If you’re planning to buy a home this year, your credit score, access to mortgage incentives, potential for securing a favorable buydown, eligibility for an adjustable-rate mortgage, and the impact of today’s high interest rates will all play critical roles in your approval and costs. With interest rates still elevated, even small changes to your credit score can significantly affect what mortgage options are available—and how affordable they are.
What Is a Good Credit Score to Buy a House?
A minimum credit score of 620 is generally required for most conventional mortgage loans. However, government-backed programs like FHA or VA loans may approve borrowers with lower scores.
Credit Score Ranges and Ratings
| Score Range | Rating |
| 300 – 579 | Poor |
| 580 – 669 | Fair |
| 670 – 739 | Good |
| 740 – 779 | Very Good |
| 800 – 850 | Excellent |
Higher credit scores typically unlock lower interest rates, reduced fees, and more flexible financing options.
Minimum Credit Score Requirements by Loan Type
Different mortgage loan types have different score thresholds. Here’s a breakdown of what most lenders require:
| Loan Type | Minimum Credit Score | Notes |
| FHA Loan | 500–580+ | 500–579 needs 10% down; 580+ qualifies for 3.5% down |
| VA Loan | No set minimum | Most lenders prefer 580+ |
| Conventional Loan | 620+ | Higher scores may avoid PMI and qualify for better rates |
| USDA Loan | No set minimum | A score of 640+ typically streamlines approval |
Lender overlays may require higher scores than these program minimums, so always ask in advance.
What Factors Affect Your Credit Score?
Lenders evaluate your FICO® Score using data from Equifax®, Experian™, and TransUnion®. Typically, the middle score is used when assessing your mortgage application.
Credit Score Components
| Factor | Weight |
| Payment History | 35% |
| Credit Utilization Ratio | 30% |
| Length of Credit History | 15% |
| New Credit Inquiries | 10% |
| Credit Mix | 10% |
When multiple borrowers apply together, most lenders use the lowest median score. Some programs, like Fannie Mae’s, may average the scores instead.
How to Improve Your Credit Score Before Applying
Improving your credit even slightly can help you qualify for better loan terms. Here are four proven ways to strengthen your score:
1. Reduce Your Credit Balances
Lowering your credit utilization below 30% of your limit can have a noticeable impact.
2. Pay All Bills on Time
Late payments seriously damage your score. Setting up auto-pay can help prevent missed deadlines.
3. Avoid New Credit Applications
Every hard inquiry slightly lowers your score, so delay applying for new credit until after your mortgage closes.
4. Dispute Errors on Your Credit Report
Inaccurate information can harm your score. Request free weekly reports at AnnualCreditReport.com and correct any mistakes you find.
Other Key Mortgage Approval Factors
Lenders don’t just look at your credit score. Several other metrics influence your approval odds and loan terms:
Debt-to-Income (DTI) Ratio
This ratio compares monthly debt payments to gross monthly income. Most lenders prefer a DTI below 43%, though some allow up to 50% for strong applicants.
Loan-to-Value (LTV) Ratio
LTV measures the loan amount versus the home’s value. Lower ratios—usually achieved through larger down payments—can reduce lender risk and eliminate the need for private mortgage insurance (PMI).
Employment and Income Stability
Expect lenders to review your employment history, pay stubs, and bank records. Consistency matters just as much as the total income amount.
Bottom Line
In 2025, qualifying for a mortgage requires more than just meeting the minimum credit score. While most conventional loans need at least a 620 score, programs like FHA or VA loans may allow lower scores with the right conditions. However, the higher your score, the more likely you are to secure competitive rates, especially with high interest rates and market volatility.
By understanding your credit profile, taking steps to improve it, and exploring mortgage incentives such as a buydown or an adjustable-rate mortgage, you can position yourself for success in today’s real estate market.
FAQs About Credit Score Requirements
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