When you apply for a mortgage, your credit score is one of the first things a lender checks — it influences both whether you qualify and the rate you're offered. Different loan programs have different requirements, and there's often more flexibility than buyers expect.
Why Credit Scores Matter for Mortgages
Lenders use your credit score as a measure of how reliably you've managed debt over time. A higher score suggests lower risk to the lender, which typically translates to better loan terms — a lower interest rate, a higher loan amount, or more program options. A lower score doesn't automatically disqualify you, but it may mean a higher rate, a larger required down payment, or fewer programs to choose from.
General Score Thresholds by Loan Type
These are common benchmarks, though lender-specific requirements can vary:
- 620 and above — Generally opens access to conventional mortgage programs, as well as VA and FHA loans with standard terms.
- 580 to 619 — You may still qualify for FHA or VA financing, though typically with a higher interest rate. A larger down payment can sometimes offset a lower score.
- Below 580 — Options are more limited, but there may still be paths forward depending on the full picture of your application.
Your Score Isn't the Whole Story
Lenders look at your credit score alongside your debt-to-income ratio, employment history, savings, and the size of your down payment. A strong showing in one area can sometimes compensate for a weaker spot in another — your application is evaluated as a whole, not just a single number.
If You Want to Improve Your Score
The two biggest levers are paying every bill on time and keeping your credit card balances well below your limits. Both factors carry significant weight in how scores are calculated. If your score isn't where you'd like it to be, a few months of focused effort often produces meaningful improvement.
Not sure where your credit stands or what loan programs might work for you? Reach out to our team — we're happy to have an honest, no-pressure conversation about what your options look like.
