Your credit score is one of the first things a lender looks at — but here’s what a lot of people don’t realize: it’s far from the only thing that matters. Here’s what you actually need to know.
What Credit Score Do You Need?
The short answer: it depends on the loan program. Here’s a quick breakdown:
| Loan Type | Minimum Score | Best Rates |
|---|---|---|
| Conventional | 620 | 740+ |
| FHA | 580 (3.5% down) | 680+ |
| FHA | 500 (10% down) | 620+ |
| VA | No official minimum | 680+ |
| Jumbo | 700+ | 740+ |
How Your Score Affects Your Rate
Your credit score directly impacts your interest rate. A higher score means a lower rate, which means lower monthly payments over the life of your loan. The difference between a 680 score and a 760 score can mean tens of thousands of dollars over 30 years.
For example, on a $400,000 30-year fixed mortgage, a half-percent rate difference (say, 6.5% vs. 7.0%) adds up to roughly $125 per month — or about $45,000 over the life of the loan.
What Else Lenders Look At
Your credit score is important, but lenders look at the whole picture:
- Debt-to-income ratio (DTI) — How much of your monthly income goes toward debt payments.
- Employment history — Stable income is key, especially for self-employed borrowers.
- Down payment — More equity means less risk for the lender.
- Cash reserves — Lenders like to see that you have savings after closing.
- Property type — Primary residence, second home, or investment property.
What If Your Score Isn’t Where You Want It?
Don’t panic. There are paths forward. FHA loans accept scores as low as 580. And if you have some time before you buy, I can help you with a plan to improve your score strategically. Sometimes a few months of targeted effort can make a significant difference.
In a personalized video consultation, I’ll review your credit profile and show you exactly what steps would have the biggest impact on your mortgage eligibility and rate. No guesswork — just a clear plan.