Understanding Credit Scores for Mortgages

Lenders rarely enforce strict credit score requirements for loan approval. Higher credit scores earn better loan terms, such as larger loan amounts or lower interest rates. Lower credit scores may require a higher down payment or a higher interest rate.

Some mortgage programs have specific credit score tiers. These programs allow borrowers with lower scores to still qualify for a loan.

If Your Credit Score is 620 or Higher

With a score of 620 or higher, you can apply for conventional mortgages and programs like VA or FHA loans. Lenders favor this score because it shows a strong history of on-time bill payments.

If Your Credit Score is 580–619

Borrowers with scores above 580 can still qualify for VA or FHA loans, though lenders may charge higher interest rates. As your credit improves, you may refinance later to secure lower rates. Keep in mind that interest rates fluctuate, so future rates may not always be lower.

If Your Credit Score is Lower

If your score falls below 580, talk to your lender about programs you may qualify for. A larger down payment or other factors may help your application. Lenders must still follow all lending regulations.

Tips to Strengthen Your Credit

One of the best ways to improve your mortgage options is to maintain a good credit score. Pay bills on time, reduce debt, and monitor your credit report to stay in a strong position when applying for a mortgage.