Your credit score is the single biggest factor that determines what loan programs you can access and what interest rate you will pay. Understanding where you stand before you apply can save you thousands of dollars in interest and help you avoid rejection.
Start by seeing what rate you qualify for today: Get personalized mortgage quotes on LendingTree — no impact to your credit score to check.
Minimum Credit Score by Loan Type
| Loan Type | Minimum Score | Notes |
|---|---|---|
| Conventional | 620 | Better rates at 700+; best rates at 740+ |
| FHA | 580 (3.5% down) 500 (10% down) |
Many lenders require 620 in practice |
| VA | No VA minimum | Most lenders require 580–620 |
| USDA | 640 | Lower scores possible with manual underwriting |
| Jumbo | 700–720 | Varies significantly by lender |
How Your Credit Score Affects Your Rate
Your credit score does not just determine whether you qualify — it directly affects your interest rate. A higher score means a lower rate, which compounds significantly over a 30-year loan.
Example based on a $300,000 30-year fixed mortgage (approximate ranges — actual rates vary by market conditions and lender):
| Credit Score Range | Approximate Rate Range | Monthly Payment (P&I) | Total Interest Paid |
|---|---|---|---|
| 760–850 | Lower end of market | Lower | Less |
| 700–759 | Near market average | Moderate | Moderate |
| 680–699 | Slightly above average | Higher | More |
| 660–679 | Above average | Higher still | Significantly more |
| 640–659 | Well above average | Much higher | Much more |
| 620–639 | Near ceiling of eligibility | Highest eligible range | Most |
Check current rate estimates by score tier at LendingTree’s mortgage rate tool for today’s actual numbers.
Which Credit Score Do Mortgage Lenders Use?
Mortgage lenders pull reports from all three bureaus — Equifax, Experian, and TransUnion — and use the FICO Score for each. When there are three different scores, lenders use the middle score. When two borrowers apply together, lenders use the lower of the two middle scores.
The specific FICO model used for mortgages is FICO Score 2, 4, and 5 (one per bureau), which may differ from the FICO 8 or VantageScore you see in free monitoring apps. Check free credit monitoring apps for a ballpark, but pull your actual mortgage credit report before applying.
What Is a Good Credit Score for a Mortgage?
- 760+: Excellent — access to the best rates, all loan programs
- 720–759: Very good — near-best rates on conventional loans
- 680–719: Good — conventional loan access with competitive rates
- 640–679: Fair — FHA and conventional access; rates higher than ideal
- 580–639: Below average — FHA and some VA programs; limited conventional options
- Below 580: Poor — very limited options; 10% down FHA minimum (500–579), or no financing
How to Check Your Credit Before Applying
- Pull your free credit reports at AnnualCreditReport.com — all three bureaus, free annually
- Check your FICO score through your bank, credit card issuer, or myFICO.com
- Look for errors: accounts that are not yours, incorrect payment history, duplicate entries
- Dispute errors with the credit bureau that reported them — disputes are free and must be resolved within 30 days
How to Improve Your Credit Score Before Applying
Pay Down Credit Card Balances
Credit utilization — your balance relative to your credit limit — accounts for 30% of your FICO score. Keeping utilization below 30% on each card improves your score. Getting it below 10% can significantly boost it. Paying down a maxed-out card from 90% utilization to 30% can add 20–40 points or more in some cases.
Do Not Close Old Accounts
Length of credit history makes up 15% of your FICO score. Closing an old credit card shortens your average account age and reduces your available credit, which can raise your utilization ratio. Leave old accounts open, even if you are not using them.
Pay All Bills on Time
Payment history is 35% of your FICO score. A single 30-day late payment can drop a 700+ score by 60–80 points. Set up autopay on minimum payments to avoid accidental misses while you are in the home-buying process.
Avoid Applying for New Credit
Each hard inquiry from a new credit application can lower your score by 5–10 points. While you are preparing to apply for a mortgage, do not open new credit cards, take out a car loan, or apply for store financing.
Dispute Errors Immediately
Errors on your report — paid accounts showing as open, incorrect balances, accounts belonging to someone with a similar name — are more common than you might expect. Disputing and removing them can improve your score quickly.
How Long Does It Take to Improve a Credit Score?
- 1–3 months: Paying down balances, resolving errors
- 6–12 months: Building a positive payment history after past issues
- 12–24 months: Recovering from major negative events like collections or bankruptcy
Bad Credit? You Still Have Options
If your credit score is between 500 and 579, FHA loans are your primary path with a 10% down payment. If it is below 500, you will need to work on your credit before applying.
Some lenders specialize in working with lower-credit borrowers. New American Funding, for example, is known for manual underwriting that looks at your full financial picture rather than just your score. See our guide: Bad Credit First-Time Home Buyer Options.
Lender Requirements: What Each Looks For
| Lender | Est. Rate Range | Min Credit Score | Min Down Payment | Best For |
|---|---|---|---|---|
| LendingTree | Varies by lender | 580 (FHA) / 620 (conv.) | 3.5% (FHA) / 3% (conv.) | Comparing multiple offers at once |
| Rocket Mortgage | Competitive market rates | 580 (FHA) / 620 (conv.) | 3.5% (FHA) / 1% (ONE+ program) | Fast digital approval process |
| Better.com | Competitive market rates | 620 | 3% | Low-fee online experience |
| New American Funding | Competitive market rates | 500 (FHA) / 620 (conv.) | 3.5% (FHA) / 3% (conv.) | Buyers with lower credit scores |
Use LendingTree to see which lenders will work with your current credit profile. The comparison tool shows you real offers, so you can see which loan programs you qualify for before committing to an application.
Bottom Line
Your credit score determines which loan types you can access and how much those loans will cost you. If your score is below 580, work on it before applying. If it is between 580 and 619, target FHA-friendly lenders. If it is 620 or higher, you have full access to conventional loans — and scores above 740 unlock the best rates on the market.
Compare mortgage rates for your credit score on LendingTree to see your real options today.