Part of the Mortgage Readiness guide.
The minimum credit score you need for a mortgage depends entirely on the loan type. There is no single number that applies across the board, and the government-set minimums are often lower than what individual lenders actually require in practice.
Minimum Score by Loan Type
| Loan Type | Minimum Score | Down Payment | Notes |
|---|---|---|---|
| Conventional | 620 | As low as 3% | Set by Fannie Mae/Freddie Mac guidelines, not a federal law — see the 2026 rule changes article for recent flexibility on this |
| FHA | 500 (10% down) or 580 (3.5% down) | 10% or 3.5% | The most accessible path for buyers with lower or thinner credit files |
| VA | No official government minimum | 0% (no down payment required) | Individual lenders typically set an internal floor around 580–620; available to eligible service members, veterans, and surviving spouses |
| USDA | No official government minimum, typically 640 for automated approval | 0% (no down payment required) | For eligible rural and suburban properties; manual underwriting possible below 640 with compensating factors |
| Jumbo | 700–720+ | Varies, often 10–20% | For loan amounts above the conforming loan limit; stricter across the board since jumbo loans are not backed by Fannie Mae or Freddie Mac |
The "Lender Overlay" Concept
The numbers above are program minimums — the floor set by the loan program itself (FHA, VA, USDA) or by Fannie Mae and Freddie Mac for conventional loans. Individual lenders are allowed to require more than the program minimum, which is called a lender overlay. It is common for an individual bank or mortgage company to require 20 to 40 points above the published program minimum, which is why two lenders can look at the same borrower and reach different conclusions on the same loan type.
What "Qualifying" Actually Means at Each Score
- Below 500: Traditional mortgage financing is essentially unavailable. Building credit first is the realistic path forward.
- 500–579: FHA is typically the only accessible option, and it requires a 10% down payment at this range rather than the standard 3.5%.
- 580–619: FHA becomes available at the standard 3.5% down payment. VA may be possible depending on the lender's internal floor.
- 620–639: Conventional financing opens up alongside FHA and VA, though rates and terms are typically less favorable than for higher scores.
- 640+: USDA becomes realistic for eligible properties, and conventional terms improve meaningfully.
- 700+: The full range of products is available, including jumbo loans, generally with the most competitive pricing.
Remember: these are single-bureau-style numbers, but mortgage lenders do not pull just one bureau. See What Is a Tri-Merge Credit Report? to understand which of your three bureau scores actually gets used.