What Credit Score Do You Need to Qualify for a Mortgage?
When it comes to buying a home, one of the most common questions we hear is:
“What credit score do I need to qualify for a mortgage?”
Your credit score plays a huge role in determining not only if you qualify for a home loan, but also how much you’ll pay in interest over time. Understanding where you stand can help you plan, prepare, and position yourself for the best possible rate.
What Is a Credit Score and Why Does It Matter?
Your credit score is a three-digit number (ranging from 300–850) that shows lenders how reliable you are when it comes to repaying borrowed money. The higher your score, the more likely you are to qualify for favorable loan terms and lower interest rates.
Lenders use this number, along with your income, debt, and employment history, to assess your overall financial health. Simply put, your credit score tells them how much of a “risk” you are, and determines the type of mortgage and interest rate you can access.
Minimum Credit Scores for Common Loan Types
Not all mortgages have the same credit score requirements. Here’s a breakdown of the most common loan programs and what to expect:
Conventional Loans: Generally require a credit score of 620 or higher. These are ideal for buyers with stable income and a good credit history.
FHA Loans: Backed by the Federal Housing Administration, these loans are popular among first-time buyers. You can qualify with a score as low as 580 if you’re putting at least 3.5% down — or 500 with a larger down payment.
VA Loans: Designed for eligible veterans, active-duty service members, and some military spouses. Most lenders look for a 620+ score, though some are flexible.
USDA Loans: Aimed at buyers in qualifying rural or suburban areas, these loans typically require a 640 or higher credit score.
Remember: each lender sets its own standards, so while these are general benchmarks, other factors like income, debt-to-income ratio, and down payment size also play a major role in approval.
How Your Credit Score Affects Your Mortgage Rate
Even a small change in your credit score can make a big difference in your monthly mortgage payment.
For example, a buyer with a credit score above 760 may qualify for one of the lowest available rates, while someone with a 620 score might pay a higher interest rate — potentially adding thousands of dollars in extra costs over the life of the loan.
Improving your credit before applying can mean the difference between a good deal and a great one.
Tips to Improve Your Credit Score Before Buying a Home
If your credit score isn’t quite where you want it to be, the good news is that you can make meaningful improvements in just a few months. Here are some actionable steps:
Pay all bills on time. Your payment history makes up the largest portion of your credit score.
Reduce your credit utilization. Aim to use less than 30% of your available credit limit.
Avoid opening new credit accounts before applying for a mortgage — it can temporarily lower your score.
Dispute errors on your credit report that could be negatively affecting your score.
Keep older credit accounts open to lengthen your credit history and improve your score stability.
Even a 20–30 point boost can help you qualify for better terms and save you money over time.
Ready to See What You Qualify For?
At Eterno Realty Group, we believe homeownership should be achievable - not intimidating. Whether you’re a first-time buyer, moving up, or investing, our team can help you connect with trusted lenders who understand your financial goals.
Together, we’ll create a roadmap that gets you closer to the keys in your hand.
Reach out today to explore your mortgage options and take the first step toward your dream home.