Mortgage · Credit Guide · 2026
Credit Score Requirements for Every Mortgage Type 2026
FHA, conventional, VA, USDA, jumbo, and HFA programs — minimum qualifying scores, rate impact by tier, and what score you actually need to get competitive terms in 2026.
FHA: 580 minimum (3.5% down) or 500 (10% down). Conventional: 620 minimum; 740+ for best rates and lowest PMI. VA: No official minimum, but most lenders require 620. USDA: 640 typical. Jumbo: 700–720 minimum. For any program, a score of 740 or above qualifies you for the best rate tier — every 20-point improvement below that typically saves $20–$50/month on a $350,000 loan.
Loan Program Requirements — Quick Reference
| Loan Type | Min. Score (Guideline) | Typical Lender Min. | Best Rate Threshold | Min. Down Payment | Notes |
|---|---|---|---|---|---|
| FHA (HUD) | 500 | 580 (most lenders) | 680+ | 3.5% (580+) / 10% (500–579) | Lifetime MIP if <10% down |
| Conventional (Fannie/Freddie) | 620 | 620 | 740+ | 3% (HomeReady/Home Possible) / 5% standard | PMI drops at 80% LTV |
| VA (veterans) | None (official) | 620 (most lenders) | 680+ | 0% | VA funding fee applies; no PMI |
| USDA (rural) | None (official) | 640 (streamlined); 580 with manual underwriting | 680+ | 0% | Income and geographic limits apply |
| HomeReady (Fannie Mae) | 620 | 620 | 720+ | 3% | Income limit: ≤80% AMI; reduced PMI |
| Home Possible (Freddie Mac) | 620 | 620 | 720+ | 3% | Income limit: ≤80% AMI; flexible sources |
| Jumbo (non-conforming) | 680–700 | 700–720 | 760+ | 10–20% | Loan >$766,550; stricter reserves requirement |
| 203(k) Rehab (FHA) | 500 | 580–620 | 680+ | 3.5% | For fixer-uppers; follows FHA guidelines |
| State HFA programs | 620–640 | 640 | 680+ | 0–3.5% | First-time buyer programs; down payment assistance |
Credit Score Tiers — What You Get at Each Level
Best available rate on every program. Lowest PMI tier. 20-year mortgage insurance on FHA is only consideration. No rate add-ons for LTV.
Near-best rates. Conventional PMI moderate. All programs fully accessible. ~0.25–0.5% higher rate vs. 760+ tier on conventional.
Competitive on FHA; conventional rates notably higher. PMI costs significant. Jumbo access limited. Every 20-point gain here saves $50–$80/mo on $350K loan.
Minimum conventional. FHA strongly preferred at this range — rate gap vs. conventional is largest here. PMI very expensive. Jumbo not accessible.
Rate Impact by Credit Score — $350,000 Loan
| Credit Score | Est. 30-yr Rate (Conv.) | Monthly P&I ($315K loan) | vs. 760+ Tier (monthly) | vs. 760+ Tier (30-yr total) |
|---|---|---|---|---|
| 760+ Best | ~6.65% | $2,016 | — | — |
| 740–759 Excellent | ~6.75% | $2,043 | +$27 | +$9,720 |
| 720–739 Good | ~6.90% | $2,082 | +$66 | +$23,760 |
| 700–719 Good | ~7.05% | $2,121 | +$105 | +$37,800 |
| 680–699 Fair | ~7.25% | $2,175 | +$159 | +$57,240 |
| 660–679 Fair | ~7.45% | $2,205 | +$189 | +$68,040 |
| 640–659 Poor-Fair | ~7.65% | $2,236 | +$220 | +$79,200 |
| 620–639 Poor-Fair | ~7.95% | $2,292 | +$276 | +$99,360 |
Fastest Ways to Raise Your Score Before Applying
- Pay down credit card balances to under 30% utilization. Credit utilization is the second largest factor in your FICO score after payment history. Paying from 60% to 20% utilization can add 40–60 points within 30 days — the single fastest lever available.
- Dispute errors on all three bureaus. An estimated 25% of consumers have errors on at least one credit report. Get free reports at AnnualCreditReport.com; dispute inaccurate late payments, accounts not yours, or incorrect balances. Successful disputes can add 20–50 points.
- Become an authorized user on a long-standing account. Being added to a family member's or spouse's account with a perfect payment history and low utilization can add their history to your file — especially effective if you have thin credit.
- Don't open new accounts in the 6 months before applying. Each new application adds a hard inquiry and reduces the average age of accounts — both negative factors. Avoid new credit cards, auto loans, or personal loans while preparing for mortgage application.
- Don't close old accounts. Closing a credit card reduces total available credit (raising utilization ratio) and shortens average account age. Leave unused cards open with zero balance.
Frequently Asked Questions
What credit score do I need to buy a house in 2026?
FHA: 580 minimum with 3.5% down (500 with 10% down). Conventional: 620 minimum, but 740+ for best rates. VA: no official minimum, most lenders require 620. USDA: 640 typical. Jumbo: 700–720. The minimum gets you in the door — for the most competitive rate and lowest PMI, aim for 740+. At 620, you can buy a home; at 740, you'll save $100–$200+/month depending on loan size.
How much does a higher credit score save on a mortgage?
On a $350,000 loan (30yr), the difference between a 620 score (~7.95% rate) and a 760+ score (~6.65%) is approximately $276/month and $99,360 over the life of the loan in interest alone — not counting the PMI savings from better terms. A 60-point improvement from 680 to 740 typically saves $100–$130/month and $36,000–$47,000 in 30-year total cost on a $350K loan.
Can I get a mortgage with a 580 credit score?
Yes — FHA loans accept 580 with 3.5% down. The trade-off: FHA adds 1.75% upfront MIP plus 0.55%/yr ongoing MIP, which can add $100–$200/month on a typical loan. At 580, conventional loans are not an option (minimum 620). VA loans (for veterans) are available at 580 with many lenders. If your score is 580, focus on FHA and start a credit improvement plan to refinance into conventional at 620+ when possible.
Does my credit score affect my down payment requirement?
For FHA loans, yes: 580+ credit = 3.5% down; 500–579 = 10% required. For conventional, the minimum down payment (3–5%) is the same across most credit tiers above 620 — but the PMI rate varies significantly. At 620 with 5% down, expect PMI around 1.6–1.8%/yr. At 740 with 5% down, PMI drops to 0.5–0.7%/yr — a difference of $350–$500/month on a $300,000 loan. The lower score doesn't just raise your rate; it dramatically raises your insurance cost.
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