What Credit Score Do I Need to Get a Mortgage?

Why Credit Scores Matter for Mortgages

Generally, a credit score of 620 or higher helps you secure the best mortgage terms. Lenders view higher scores as lower risk, which can speed up underwriting and approval. A strong credit score also helps you qualify for lower interest rates. Essentially, it shows that you consistently repay loans and cover your bills on time.

What If Your Credit Score Is Below 620?

Even with a lower credit score, you can still pursue homeownership. However, you may need a larger down payment, accept a higher interest rate, or have a co-signer on your loan.

One option is an FHA loan, backed by the Federal Housing Administration. For credit scores above 580, you need a 3.5% down payment. If your score falls between 500 and 579, the required down payment increases to 10%. This program allows people with lower credit to access homeownership while still protecting lenders.

How to Improve Your Credit

If you want the best financing terms, consider improving your credit before applying. Start by paying bills on time and keeping credit card balances at zero. Over time, these habits can raise your credit score.

If your credit report shows adverse events, such as a bankruptcy, you may need to wait until they fall off your report. During this time, you can also save for a larger down payment. Strengthening your credit reduces lender risk and increases your chances of approval with favorable terms.