Short Answer
Minimum credit score requirements vary by loan type. Conventional loans typically require a 620 or higher. 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 look for 620 or above. USDA loans often require 640. The higher your score, the better your interest rate will be.
While minimum credit scores exist for each loan type, your credit score directly affects the interest rate you qualify for. A higher score can save you tens of thousands of dollars over the life of your loan. For example, on a $350,000 loan, the difference between a 660 and a 760 credit score could be over $50,000 in interest over 30 years. Lenders also consider your payment history, credit utilization, length of credit history, and recent inquiries. If your score is below the minimum for the loan you want, do not give up. Many buyers take 6 to 12 months to improve their credit by paying down balances, disputing errors on their credit report, and making all payments on time.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Your credit score is not your destiny. It is a starting point. I have worked with buyers who thought their credit disqualified them and were back in the game within six months of focused effort. If you are unsure where you stand, let us talk. I will connect you with a lender who can pull your credit, give you honest feedback, and create a plan to get you ready. Do not wait until your credit is perfect to start the conversation. Start now and build a roadmap.
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