FHA mortgages accept 580+ credit; conventional require 620+. Jumbo loans often require 700+. Higher scores = lower rates: a 100-point difference saves ~0.5% interest rate (roughly $115-$175/month on a $350k loan). Check your score before shopping.
Minimum credit scores by loan type
FHA: 580 (3.5% down) or 500 (10% down). Conventional: 620 minimum, 740+ for best rates. VA: 620 typical (no official minimum). USDA: 640 typical. Jumbo: 700-750. Your score from one of three bureaus (Equifax, Experian, TransUnion); lenders use the middle score if pulling all three.
How credit score affects your rate
Each 20-point drop = ~0.125% rate increase. 620-639 score: 1.5-2.5% higher rate vs 760+. 640-659: 1-1.5% higher. 660-679: 0.5-1% higher. 740+: best available rates. Example: $350k loan, 30 years. 620 score @ 7.5% APR = $2,323/month. 760+ score @ 6.5% = $2,186/month ($137/month savings).
Can I get approved with fair credit (580-619)?
Yes, but only with FHA or portfolio lenders. Expect 2-3% higher rates than conventional. You'll need compensating factors: large down payment, substantial cash reserves, low debt-to-income, or excellent payment history despite lower score. Conventional lenders won't touch scores under 620.
What improves your score before applying?
Pay all bills on time (35% of score). Lower credit card balances to under 30% of limits (30% of score). Don't apply for new credit 6 months before applying (hard inquiries hurt score). Dispute errors on your credit report. Become an authorized user on someone else's high-limit, low-balance card (risky; ensure they won't damage it).
Should I wait to improve my score?
If you're 60-100 points away from the next tier (620, 740), waiting 3-6 months to improve may save more in rate reductions than it costs in higher rent. If you're close (1-2 years away from buying), improve now. If buying within 6 months, shop now—waiting may not pay off.
Frequently Asked Questions
What's the difference between credit score and credit report?
Score = 3-digit number (300-850) summarizing creditworthiness. Report = detailed history of all accounts, payments, inquiries, collections. Both matter; lenders review both.
Do all lenders use the same credit score?
No—different bureaus (Equifax, Experian, TransUnion) calculate slightly different scores. Lenders may use one, two, or all three; they use the middle score. Your mortgage score may differ from your credit card score.
How much can I improve my credit score in 3 months?
Realistic: 20-50 points from paying down credit cards or disputing errors. Hard inquiries (applying for credit) hurt you initially but recover after 3 months. Don't expect dramatic jumps unless you dispute major errors.
Will checking my credit score hurt it?
No—checking your own score (soft inquiry) doesn't affect it. Lenders pulling your score (hard inquiry) costs 5-10 points but recovers in 3-6 months. Multiple hard inquiries in 14 days count as one (rate-shopping protection).
Can I get a mortgage with a low score and a co-signer?
Yes—co-signer's score and income both count. Lender may use the better score or average both. Co-signer is equally liable for the loan.