What is The Minimum Credit Score for a Mortgage?

Your credit score has a large impact on the rates you’ll be offered when applying for a mortgage.

Depending on the mortgage loan you want, the minimum credit score may vary. It’s up to the lender to decide what score you’ll need in order to receive the lowest interest rates. Improving your credit score by even a few points can greatly affect your monthly payments.

FHA Loans

The minimum credit score required to receive a mortgage loan depends on the type of loan you’re considering.

FHA (Federal Housing Administration) mortgage loans have some of the lowest requirements, with a minimum credit score of just 580. However, even if your credit score doesn’t meet that requirement, you may still be able to qualify for an FHA loan with a higher down payment.

See if You Qualify for an FHA Loan with This Short Quiz

VA Loans

A VA loan may be a bit tricky, because while the VA doesn’t have a minimum credit score requirement, the VA lenders do. The number varies by lender, but the good news is that if you are denied by one, you can still find another.

There are plenty of other lenders within the VA loan system to choose from.

Traditional Loans

Although minimum credit score requirements vary from lender to lender, the average score required by traditional lenders is at least 620.

The higher your credit score, the better mortgage terms you’ll be offered. These favorable terms may include better interest rates and lower down payment requirements. To avoid jumping through additional hoops, a score of 660 or higher is recommended.

However, if you do have a low credit score, there’s still hope. It may take some time to improve your credit, so it’s best to begin several months before applying for a loan.

Some of the easiest ways to improve your score is to pay off your debt, make payments on time, and check your report frequently for errors that can be corrected.