Credit Scores and Your Mortgage
What score you need for each loan program, how scores are calculated, and practical ways to improve yours before you apply.
Credit score ranges
These are the standard FICO score ranges. Higher scores generally mean lower rates and lower mortgage insurance costs.
Minimum scores by loan program
Typical minimums. Individual lenders can set higher requirements, and a stronger file can offset a lower score.
| Program | Typical minimum score |
|---|---|
| FHA | 580 for 3.5% down; 500–579 with 10% down |
| Conventional | 620 typical |
| VA | No VA-set minimum; most lenders look for 580–620 |
| USDA | 640 for streamlined approval; lower may be possible |
| Jumbo | Often 700+ |
| DSCR / non-QM | Varies by lender, commonly 620–680+ |
What makes up your score
FICO publishes the general weight of each factor.
Payment history
Paying on time, every time. Late payments, collections and bankruptcies weigh the most.
Amounts owed
How much of your available credit you use. Lower card balances help quickly.
Length of history
The age of your oldest account and the average age of all accounts.
New credit
Recent applications and newly opened accounts.
Credit mix
Having both revolving credit (cards) and installment loans (auto, student).
Before you apply
Avoid opening new accounts, financing furniture or co-signing anything until after you close.
How to improve your score before applying
- Pay credit cards below 30% of their limits, ideally below 10%
- Make every payment on time; set up autopay for minimums
- Check your reports free at AnnualCreditReport.com and dispute errors
- Keep older accounts open
- Don't open new credit while you're shopping for a home
- Ask us about a rapid rescore if you're close to a better pricing tier
Common questions
Which credit score do mortgage lenders use?
Most mortgage lenders pull your report from all three bureaus (Equifax, Experian and TransUnion) and use the middle of your three scores. Mortgage scores can differ from the free scores in banking apps.
How fast can I raise my score?
Paying down credit card balances can move your score within one or two billing cycles. When you're close to a pricing threshold, a lender can request a rapid rescore to update your report within days.
Should I close old credit cards?
Usually not. Closing old accounts can raise your utilization and shorten your credit history. Keep them open, even if you rarely use them.
Not sure where your credit stands?
Marcos can review your credit and show you exactly what it qualifies for and what it would take to do better.