FHA 500/580, VA No Minimum, Conventional 620, USDA 640, Non-QM
Minimum Credit Score for a Mortgage: Requirements by Loan Type in 2026
FHA is the most accessible at 500 minimum with 10% down (580 for 3.5% down). VA has no agency minimum — lender overlays start at 580–620. Conventional requires 620+ for automated approval. USDA needs 640 for GUS approval. Non-QM starts at 660+. Your score determines which programs are available and what you pay for each one.
Next step:
Check What You Qualify For
FHA Requirements
- 580+: Standard 3.5% down payment — where 85% of FHA originations occur with automated TOTAL Scorecard approval
- 500–579: 10% down required with manual underwriting — fewer than 20% of FHA lenders originate at this level
- Below 500: Not eligible for FHA under any circumstance — no compensating factors override this absolute floor
- Action: FHA is the first option for borrowers below 620 — the most permissive credit requirements among all government programs
VA Requirements
- No VA minimum: The VA itself sets no credit score floor — all minimums are lender overlays that vary by institution
- Typical overlays: 580–620 at most VA lenders; some specialty lenders accept lower with strong residual income
- Rate advantage: VA rates are typically 0.25–0.50% below FHA at the same score — plus $0 down and no monthly MI
- Action: For eligible veterans, VA should always be evaluated first regardless of credit score level
Conventional Requirements
- 620 minimum: Desktop Underwriter requires 620+ for automated Approve/Eligible finding — the hard floor for conventional
- 680+ for best pricing: Loan-level pricing adjustments (LLPAs) penalize scores below 680 significantly on rate
- 740+ optimal: Lowest LLPA penalties and best available conventional rates at this tier and above
- Action: Below 680, compare conventional total cost (rate + PMI) against FHA total cost (rate + MIP) — FHA often wins
Other Programs
- USDA: 640+ for GUS automated approval; manual underwriting available below 640 but with limited lender options
- Non-QM: 660–700+ depending on product type — bank statement, DSCR, asset depletion each have different floors
- Jumbo: 700+ for most jumbo lenders; 680 at some with higher down payment and reserve requirements
- Action: If your score is below 620, your options are FHA, VA (if eligible), and non-QM — conventional and USDA are off the table
Frequently Asked Questions
What is the lowest credit score to get a mortgage?
Does a higher score get me a lower rate?
Which FICO score do mortgage lenders use?
The Bottom Line Up Front
Your credit score determines which mortgage programs are available to you and what you pay for each one. FHA is the most accessible at 500 minimum (580 for 3.5% down). VA has no agency minimum. Conventional requires 620+. USDA needs 640. Each 20-point score improvement that crosses a pricing threshold saves $30–$150 per month on a typical loan amount.
The published agency minimums are the floor — not the effective minimum at most lender counters. Lender overlays raise the practical minimum by 20–60 points above the agency guideline. Understanding both the agency floor and the typical lender overlay prevents wasted applications at lenders who will not originate at your score level. And understanding the pricing impact at each score band shows you exactly how much credit improvement is worth before you apply.
What Are the Exact Credit Minimums by Loan Program?
Each mortgage program sets its own credit score requirements, and the differences determine your available options at any given score level. The table below shows both the agency-published minimum and the typical lender overlay — because the two are often very different.
| Program | Agency Minimum | Typical Overlay | Down Payment | Monthly MI |
|---|---|---|---|---|
| FHA | 500 (10% down) / 580 (3.5%) | 580–640 | 3.5–10% | 0.55% permanent |
| VA | No minimum | 580–620 | $0 | $0 (none) |
| Conventional | 620 | 620–640 | 3–20% | PMI cancels at 78% LTV |
| USDA | No minimum (manual) | 640+ | $0 | 0.35% annual |
| Non-QM (bank stmt) | N/A | 660–700 | 10–25% | None |
| Non-QM (DSCR) | N/A | 640–680 | 20–25% | None |
| Jumbo | N/A | 700+ | 10–20% | Varies |
Deal Saver
At every score level, there is a program that fits — the question is which program offers the best combination of down payment, rate, and mortgage insurance for your specific number. Below 580: FHA with 10% down or VA (if eligible). 580–619: FHA with 3.5% down or VA. 620–679: FHA, VA, or conventional (compare total cost including MI). 680+: Conventional usually wins because PMI cancels and LLPAs are favorable. Do not default to one program — compare all options your score qualifies for.
How Does Your Credit Score Affect Your Interest Rate?
Mortgage rates are not one-size-fits-all — they are priced by credit score band through a system of loan-level pricing adjustments (LLPAs) on conventional loans and risk-based pricing on all programs. Every 20-point score band carries a different rate premium or discount. The relationship is not linear — the most significant rate improvements happen at specific threshold crossings.
| Score Range | Typical Rate Impact vs 740+ | Monthly Difference ($300K loan) |
|---|---|---|
| 740+ | Baseline (best rate) | $0 |
| 720–739 | +0.125% | +$25/mo |
| 700–719 | +0.25% | +$50/mo |
| 680–699 | +0.375% | +$75/mo |
| 660–679 | +0.625% | +$125/mo |
| 640–659 | +0.875% | +$175/mo |
| 620–639 | +1.25% | +$250/mo |
The impact compounds over the life of the loan. A borrower at 620 paying 1.25% more than a 740+ borrower on a $300,000 loan pays $250 more per month — $3,000 per year, $90,000 over 30 years in additional interest. This is why even a modest 40-point score improvement from 620 to 660 can save $125/month ($45,000 over 30 years). The credit improvement investment pays for itself many times over on any mortgage held longer than a few months.
What Credit Score Model Do Mortgage Lenders Use?
Mortgage lenders pull a tri-merge credit report that retrieves your data from all three bureaus (Equifax, Experian, TransUnion) simultaneously. Each bureau generates a FICO score from their data using a mortgage-specific FICO scoring model. The lender uses the middle score of the three — not the highest, not the lowest, and not an average.
If your three bureau scores are 610, 635, and 650, the qualifying score is 635 (the middle one). On joint applications, the lower of the two borrowers’ middle scores determines program eligibility and rate pricing. This is important: adding a co-borrower with a lower score can hurt your pricing even though their income helps with DTI qualification.
The FICO scores you see on free credit monitoring apps (Credit Karma, Mint, your bank’s dashboard) typically use VantageScore 3.0, which can differ from mortgage FICO by 20–50 points in either direction. Do not assume the score on your app is what a mortgage lender will pull. The only way to know your actual mortgage qualifying score is to have a lender pull your tri-merge report — or to check your FICO scores directly at myfico.com using the same models lenders use.
Which Program Should You Target at Each Score Level?
Your credit score creates a decision tree that narrows your program options. At each score level, there is an optimal program that offers the best combination of down payment requirement, interest rate, and total mortgage insurance cost over your expected holding period.
Program Selection by Score Band
- Below 500: No mortgage program available. Focus exclusively on credit improvement — utilization reduction, error correction, and time — until your score reaches at least 500 for FHA or 580 for broader access
- 500–579: FHA with 10% down (manual underwriting) or VA if eligible (no VA minimum, $0 down). Fewer than 20% of lenders originate here. Target specialty lenders or use a broker
- 580–619: FHA with 3.5% down is the primary option. VA if eligible ($0 down, no monthly MI, lower rate). Conventional is not available below 620. USDA is accessible at 580 with manual underwriting but most lenders overlay at 640
- 620–679: All major programs available. Compare FHA vs conventional total cost carefully — FHA’s permanent MIP makes it more expensive than conventional with cancellable PMI at scores above 660 for holding periods beyond 5–7 years
- 680–739: Conventional is usually the best choice — LLPAs are favorable, PMI rates are competitive, and PMI cancels at 20% equity. FHA’s permanent MIP makes it definitively more expensive at this score level
- 740+: Conventional with the best available pricing. Lowest LLPAs, lowest PMI rates, and access to the most competitive lender offers. VA remains competitive for eligible veterans due to $0 down and no MI
Lender Reality Check
The score you need is not just the program minimum — it is the score that gets you approved at a rate and payment you can afford. A 580 FHA borrower is technically eligible but pays significantly more per month than a 680 conventional borrower on the same loan amount. If you are 40–60 points below a meaningful pricing threshold, 60–90 days of credit work before applying can save tens of thousands over the life of the loan. Do not rush into a higher-cost loan when modest credit improvement unlocks dramatically better terms.
File Guidance
Before applying, know two numbers: your actual tri-merge middle FICO score (not VantageScore from an app), and the next pricing threshold above your current score. Then calculate whether 60–90 days of credit work to cross that threshold saves more in lifetime loan cost than the delay costs in rent or other expenses. In almost every case, the credit improvement math is overwhelmingly positive — the monthly savings from crossing one pricing threshold compound over 15–30 years of payments.
The Bottom Line
Every mortgage program has a credit floor, and your score determines both which programs are available and what each one costs. FHA starts at 500, VA has no agency minimum, conventional requires 620, USDA needs 640. But the agency minimum is not the effective minimum — lender overlays add 20–60 points above the published floor at most institutions.
The biggest financial impact is not at the eligibility threshold — it is at the pricing thresholds (620, 680, 720, 740) where each 20-point improvement saves $30–$150/month through better rates and lower mortgage insurance costs. If you are within 40 points of a meaningful threshold, invest in credit improvement before applying. The 60–90 days of work costs a fraction of the lifetime savings from crossing into the next pricing band.
Frequently Asked Questions
Can I get a mortgage with no credit score?
Yes — FHA allows manual underwriting with non-traditional credit (12 months of rent, utility, and insurance payment documentation). VA may accept borrowers without a FICO score depending on the lender. Conventional requires a credit score for DU/LP automated approval. Non-traditional credit paths are limited to government programs.
How fast can I improve my score 50 points?
60–90 days is realistic for many borrowers. The fastest lever: pay revolving credit card balances below 10% utilization. Dropping a maxed card to near zero can add 30–60 points within one billing cycle. Combined with correcting errors and a rapid rescore, a 50-point gain in 2–3 months is achievable for utilization-driven low scores.
Why is the score on my app different from the lender’s pull?
Free credit apps typically use VantageScore 3.0, while mortgage lenders use FICO mortgage-specific scoring models. The models weigh factors differently and can produce scores that differ by 20–50 points. Always get a lender credit pull for the actual qualifying score — do not rely on app scores for mortgage planning.
Does checking my credit hurt my score?
Soft pulls (credit monitoring apps, pre-qualification) do not affect your score. Hard pulls (formal mortgage applications) may drop your score 3–5 points temporarily. Multiple mortgage inquiries within a 14–45 day window count as a single inquiry for scoring purposes — shop multiple lenders within a concentrated period.
What is the most important score — the highest or the middle?
The middle score is the qualifying score for mortgage purposes. If your three bureau scores are 590, 620, and 645, you qualify at 620 (the middle). On joint applications, the lower middle score of the two borrowers determines eligibility and pricing for the entire loan.
At what score does it stop mattering?
Above 740, rate improvements are minimal — the best LLPA pricing tier starts at 740 for conventional. Scores of 760, 780, or 800 may not receive any additional rate benefit over 740 at most lenders. Focus improvement efforts on getting to 740 — above that, the returns diminish significantly.