Mortgage Credit Score Requirements

Most conventional mortgages require a credit score of 620. FHA loans accept scores as low as 580 or (500 with 10% down).

Mortgage lenders use FICO Scores 2, 4, and 5; older versions specifically designed for mortgage lending. These scores are typically 20-40 points lower than the free scores you check online.

Minimum Credit Score by Loan Type

Here’s exactly what you need to quality for each type of mortgage:

The “Best Rate Score” is where you’ll actually save money. A 620 score gets you approved, but you’ll pay thousands more in interest than someone with a 740 score.

Which FICO Score Do Mortgage Lenders Use?

You have over 40 different credit scores. The score you see on VantageScore 3.0 has zero bearing on your mortgage application.

The Tri-Merge: How Lenders Calculate Your Mortgage Score

Mortgage lenders pull three specific FICO scores:

1. FICO Score 2 from Experian
2. FICO Score 4 from TransUnion
3. FICO Score 5 from Equifax

Then they use the middle score.

Example: Single Borrower

The lender uses 700 (the middle of 680, 700, 720) to qualify you and determine your interest rate.

Example Two: Two Borrowers (Married Couple)

When applying jointly, the lender:

1. Finds the middle score for Borrower A
2. Finds the middle score for Borrower B
3. Uses the LOWER of the two

This is brutal but true: Even if one spouse has an 800 credit score, if the other has a 650, the couple qualifies at 650. Sometimes it makes sense for the higher-scoring spouse to apply alone (if their income qualifies).

How Your Credit Score Affects Your Mortgage Rate

Here’s the real cost of a lower credit score. Based on a $400,000 30-year fixed mortgage:

The difference between a 620 score and a 760 score? $405 per month, or $145,800 over the life of the loan. That’s not a typo, this is how your credit score impacts your mortgage rate.

What Else Mortgage Lenders Look At

Your credit score is critical, but it’s not the only factor. Lenders evaluate:

Debt-to-Income Rate (DTI)

Your total monthly debt payments are divided by your gross monthly income. Most lenders want to see DTI below 43%, but ideally under 36%.

Example: Monthly debts (mortgage + car + student loans + credit cards) = $3,000. Gross monthly income = $8,000. DTI = 37.5%

Employment History

Lenders typically want to see 2 years of consistent employment in the same field. Frequent job hopping or recent career changes raise red flags, even with good credit.

Cash Reserves

Money left in the back after closing. Lenders want to see you can cover 2-6 months of mortgage payments in savings, depending on the loan type.

How to Improve Your Mortgage Credit Score Before Applying

Start working on your credit 6-12 months before you plan to apply. Here’s the priority order:

1. Check All Three Credit Reports for Errors

Get your reports from AnnualCreditReport.com and dispute any inaccuracies. Wrong late payments, accounts that aren’t yours, or incorrect balances can al drag down your mortgage scores.

2. Pay Down Credit Card Balances Below 10%

This is the fastest way to boost your score. If you have $10,000 in total credit limits, keep balances under $1,000 combined. Pay down cards before your statement closing date for maximum impact.

3. Don’t Close Old Credit Cards

Closing cards reduces your available credit (increasing utilization) and shortens your credit history. Keep them open even if you don't use them.

4. Avoid New Credit Applications

Critical: Don't apply for any new credit cards, car loans, or personal loans in the 6 months before your mortgage application. Even one hard inquiry can drop your score 5-10 points.

FAQs about Mortgage Credit Score

What credit score do I need to buy a house?

For conventional loans, you need a minimum of 620. FHA loans accept scores as low as 580 (or 500 with 10% down). VA and USDA loans typically require 620, though VA has no official minimum.

Which credit score do mortgage lenders use?

Mortgage lenders use FICO Score 2 (Experian), FICO Score 4 (Transunion), and FICO Score 5 (Equifax). They pul up scores from all 3 and use the middle score.

Can I get a mortgage with a 580 credit score?

Yes, with an FHA loan. You’ll need at least 3.5% down. However, expect higher interest rates and mortgage insurance premiums for the life of the loan.

How much does credit score affect mortgage rate?

On a $400,000 mortgage, the difference between a 620 score and a 760 score is about $405 per month ($145,800 over 30 years). Every 20-point increase in your score can save you $50-100 monthly.

Should I buy a house now or wait to improve my credit score?

If your score is below 680, waiting 6-12 months to improve it will likely save you tens of thousands in interest. If your score is already 740+, timing the market matters less than finding the right property.

The Bottom Line

Your mortgage credit score determines more than just approval—it controls how much you'll pay over 30 years. The difference between "barely qualifying" at 620 and "getting the best rate" at 760 is $145,000.

Key takeaways:

1. Lenders use FICO 2, 4, and 5—not the scores you see online
2. They pull all three scores and use the middle one
3. For couples, they use the lower spouse's middle score
4. 620 gets you approved; 740+ gets you the best rates
5. Every 20 points of score is worth $50-100/month in interest savings

If you're planning to buy a home, get your actual mortgage scores (not Credit Karma) 6-12 months before applying. Fix errors, pay down balances, and avoid new credit. The work you put in now pays off every month for 30 years.