You need at least a 620 credit score for most conventional loans and 580 for an FHA loan with 3.5% down. But the minimum only gets you approved. A higher score gets you a lower rate, and on a $300,000 loan the gap between a 620 and a 780 score was about $170 a month in July 2026.
| Loan type | Minimum score |
|---|---|
| Conventional | 620 |
| FHA, 3.5% down | 580 |
| FHA, 10% down | 500 |
| VA | No official minimum; lenders usually want 620 |
| USDA | No official minimum; lenders usually want 640 |
| Jumbo | Usually 700+ |
What your credit score costs you
Rates are July 2026 national averages by FICO score (myFICO via Bankrate). Rates have risen since, so treat these as a comparison, not a quote.
Estimates for education only. Rates and costs vary; confirm with a licensed lender.
How to raise your score before you apply
- Check your reports for errors. You can get free reports from all 3 bureaus at AnnualCreditReport.com.
- Pay down credit card balances. Using less than 30% of your limits helps; under 10% is better.
- Don't open new accounts in the months before you apply.
- Pay everything on time. Payment history is the biggest part of your score.
- Shop for a mortgage within a short window. Multiple mortgage inquiries within a short window (14–45 days, depending on the scoring model) usually count as one.
Module 1 of the HomeLooker course is free to read. It covers which credit moves raise your score fastest, how to lower your debt-to-income ratio, and a savings timeline calculator for your cash goal.
Read Module 1 free →$47 one-time · 30-day money-back guarantee
What if my score is below 620?
An FHA loan may still work: 580 with 3.5% down, or 500–579 with 10% down. You can also wait 6–12 months while you pay down debt. Even a 40-point gain can move you into a better rate tier.
Educational content only, not financial advice. Rates by credit score are estimates from Bankrate (July 2026); the Freddie Mac weekly average was 7.4% as of October 15, 2026. Confirm current figures with a licensed lender.
Sources: Bankrate, July 2026, Freddie Mac PMMS.
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