Short Answer
Credit score requirements vary by loan type. Conventional loans typically require a minimum score of 620. FHA loans may accept scores as low as 580 with 3.5% down, or 500 with 10% down. VA loans have no official minimum but most lenders require 620. USDA loans typically require 640. Jumbo loans usually require 700 or higher. A higher score improves your rate and terms regardless of loan type.
Each loan type has its own credit score requirements because they are insured or guaranteed differently. Conventional loans, which are the most common, require a minimum credit score of 620 for Fannie Mae and Freddie Mac. Borrowers with scores of 740 or higher get the best rates and lowest PMI costs. FHA loans are more flexible, allowing scores as low as 580 with 3.5% down. With a score between 500 and 579, FHA requires 10% down. However, individual lenders can set their own overlays, sometimes requiring higher minimums. VA loans have no official minimum credit score set by the Department of Veterans Affairs, but most lenders require at least 620. USDA loans require a minimum credit score of 640 for automated underwriting. Jumbo loans, which exceed the conforming loan limit, typically require a minimum of 700 and often 720 or higher because the lender is taking on more risk. Your credit score also affects your interest rate. The difference between a 660 and 760 score can mean tens of thousands of dollars in interest over the life of the loan.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Your credit score is not the only factor lenders consider, but it is one of the most important. If your score is below the minimum for the loan you want, do not give up. Many buyers improve their credit in six to twelve months by paying down balances and making all payments on time. Let me connect you with a lender who can check your score, tell you which loan types you qualify for, and give you a plan to improve your score if needed. Knowledge is power when it comes to credit.
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