Credit Score  ·  Licensed in NJ · CT · FL  ·  NMLS #1630225

Credit Score Requirements — What Each Program Actually Needs

Your credit score decides which programs are open to you rather than whether you can borrow at all. FHA starts at 500 with 10% down and 580 with 3.5% down. Conventional wants 620. VA sets no minimum of its own, and an FHA Streamline is approved on payment history without a score at all. Above 740 the number stops changing what you qualify for and starts changing what you pay.

Last updated August 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
500Minimum
Credit Score
580FHA
For 3.5% Down
620Conventional
Minimum Score
740Best Pricing
At or Above


Understanding Credit Scores

How Your Credit Score Affects Your Mortgage

Your credit score is a three-digit number between 300 and 850 that tells a lender how reliably you have repaid debts in the past. In mortgage lending, the score used is almost always a FICO score — specifically the middle of your three bureau scores (Equifax, Experian, and TransUnion), or the lower of two if only two scores are returned. Lenders use this number to set your interest rate, determine your required down payment, and decide which programs you can access.

Most buyers know their credit score matters, but fewer understand how dramatically it can change the terms of their loan. A borrower with a 760 credit score applying for a conventional loan will almost always get a lower rate than someone with a 680 score applying for the same loan amount. That difference compounds over 30 years into tens of thousands of dollars. At the same time, a score of 620 that does not qualify for conventional financing might qualify comfortably for FHA — so knowing your options matters as much as knowing your number.

Important: Lenders pull your credit score from all three bureaus — Equifax, Experian, and TransUnion. The score they use is the middle of the three (or the lower of two if only two return). If you are applying jointly, the qualifying score is the lower middle score of both borrowers. We check this with you before you ever submit an application.


Programs & Requirements

Credit Score Requirements by Mortgage Program

Every loan program has its own minimum credit score requirement. Here is a quick-reference breakdown of all 20 programs we offer — what the minimum is, who it is for, and where to learn more.

Loan Program Min. Score Best For
FHA Loan 500 First-time buyers, lower credit scores. 500–579 requires 10% down; 580+ qualifies for 3.5% down.
VA Loan 500 Veterans, active duty, surviving spouses. 100% financing, no PMI. No VA-set minimum; 500 is the practical floor.
Non-QM Full Doc 550 Borrowers with full tax returns and W-2s who need flexible credit guidelines or shorter waiting periods after a credit event.
Non-QM ALT Doc 600 Self-employed and investor borrowers documenting income with bank statements, 1099s, P&L, or assets instead of tax returns.
HELOC 600 Homeowners tapping equity with a line of credit. Self-employed qualify via bank statements (680) or tax returns (600).
Bank Statement Loans 600 Self-employed borrowers qualifying on 12 or 24 months of personal or business bank deposits.
DSCR Loans (Investment) 600 Real estate investors qualifying on the rental income of the property rather than personal income.
Asset Only Loans 600 Borrowers with substantial liquid assets who qualify on those assets rather than employment income.
No Income Verification Loans (Primary) 620 Primary residence and second home buyers who qualify with no stated income and no employment documentation.
FHA 203k 580 Buyers who want to purchase and renovate in one loan. Slightly higher threshold due to renovation complexity.
Home Ready 620 Low-to-moderate income buyers. Fannie Mae program, 3% down, accepts household income to qualify.
Conventional 620 Buyers with solid credit. No mortgage insurance required at 20%+ down. Best pricing above 740.
Home Possible 620 Freddie Mac’s 3% down program for moderate income buyers. Reduced MI for qualifying borrowers.
FHA Construction To Permanent 620 Buyers building a new home. One closing converts construction financing to a permanent FHA loan.
Conforming High Balance 620 Buyers in high-cost counties financing above the standard conforming limit within Fannie/Freddie guidelines.
FHA Streamline None Existing FHA borrowers only. Approval based on payment history, not credit score. No appraisal required.
Construction Loan 620 Short-term financing during the build phase. Converts to a permanent mortgage upon project completion.
HomeStyle Renovation Loan 620 Finance home improvements through your mortgage. Covers HomeStyle renovation products.
Jumbo Loan 660 Loan amounts above conforming limits. Most lenders require 700+; 660 is the practical floor.
USDA Loan 550 Rural and suburban eligible areas. 100% financing, no down payment. Income limits apply.

Not sure which program fits your credit score? Call us at 888.958.5382 or apply online for a free review. We will tell you exactly which programs you qualify for and what the terms look like before you commit to anything.

Credit Score Ranges

What Does Your Credit Score Mean for Your Mortgage?

Your credit score tells us which programs are available to you and what you can expect to pay. Here is a plain breakdown by credit score range.

760 and Above — Excellent. You qualify for every conventional, FHA, VA, USDA, and jumbo program available. Lenders compete for borrowers at this level, and you will receive the lowest available interest rates and the best pricing on mortgage insurance. If your score is here, the main question becomes which program gives you the best overall terms — not whether you qualify.
700–759 — Very Good. You qualify for all standard programs including conventional, FHA, VA, and USDA. You may not hit the absolute best pricing tier but you will receive competitive rates and straightforward approval. Most buyers in this range have no trouble getting approved — the decision is more about selecting the right program than clearing a credit hurdle.
640–699 — Good, With Options. Conventional, FHA, VA, and USDA are all still available at this range. You will pay more in rate and mortgage insurance than borrowers above 700, but the difference is manageable. Some lenders add pricing adjustments at this range for conventional loans, which is why working with a mortgage broker — not a single bank — matters here.
580–639 — FHA Territory. Standard conventional approval becomes more difficult at this range, but FHA loans are fully available with 3.5% down. VA and USDA are also options if you qualify on other criteria. Non-QM programs are available for self-employed buyers or those who do not fit FHA guidelines. This range is extremely common and we close a significant number of loans here every year.
500–579 — FHA With 10% Down. FHA allows scores in this range with a 10% down payment. Non-QM programs starting at a 550 score are also available depending on your income situation and assets. A score in this range usually comes with a higher rate, but homeownership is still achievable. We will tell you exactly what it costs and what your options look like.
Below 500 — Rebuild First, Then Buy. Most programs have a floor of 500. If your score is below that threshold, the most productive path is a short-term credit repair plan. We can point you in the right direction, and in many cases a buyer who works on their credit for 6–12 months can move from below 500 to a qualifying range. We would rather tell you the truth than waste your time on applications that will not close.


Our Process

How We Match Your Credit Score to the Right Mortgage

As a mortgage broker, we are not tied to one bank’s guidelines. We work with multiple loan programs and we shop your file to find the program that fits your credit score, income, and goals. Here is how the process works.

1

Free Credit and Loan Review

The first call is free and it covers everything. We look at your credit score, your income situation, what you have saved for a down payment, and what you are trying to accomplish. By the end of that conversation you will know which programs are available to you, what the approximate terms look like, and what — if anything — needs to happen before you apply.

2

We Pull Your Credit and Identify the Strongest Program

We pull a tri-merge credit report that shows all three bureau scores. We look at the middle score, identify any issues that are affecting your number, and determine whether there is a quick path to a higher score before you apply. Then we match your credit profile to the programs where you will get the best pricing — not just the first lender who will approve you.

3

Pre-Approval With a Real File Behind It

Our pre-approvals are based on actual review of your credit, income, and assets — not an automated algorithm. When a seller receives our pre-approval letter, it carries weight because we have actually looked at the file. Buyers with lower credit scores especially benefit from having a broker who can explain the file and stand behind the approval.

4

If Your Score Needs Work, We Tell You Exactly What to Do

If your credit score needs improvement before you can qualify, we do not just say “check back later.” We go through your report with you, identify specific items that are dragging your score down, and give you a concrete plan with a realistic timeline. Many buyers in this situation come back to us 3–6 months later ready to apply and close.

5

We Stay With You Through Closing

From the day your offer is accepted through the day you sign at the closing table, we are managing the file. We respond to underwriting requests quickly, stay in communication with your real estate agent, and make sure nothing delays your closing. Buyers with non-standard credit profiles especially benefit from working with a broker who knows the underwriting guidelines inside and out.

About Credit Scores: FICO scores are the industry standard in mortgage lending. For a plain-language explanation of how credit scores are calculated and what affects your number, the Consumer Financial Protection Bureau has a helpful resource at consumerfinance.gov. We are always available to answer specific questions about how your score affects your mortgage options.

Not sure which programs your score actually opens?
Find out where you stand

Before You Start

What Happens After You Apply

  1. You send the application

    A few minutes online. No documents at this stage.

  2. A licensed loan officer calls you

    Someone on our team covering your state.

  3. We ask for documents and pull credit

    Only once you have decided to move forward.

  4. You get an approval to shop with

    Typically back within the hour.

What Clients Say

Real Reviews From Our Clients

Here’s what a few of our clients said about working with Mortgage-World.com.

★★★★★
“Chris Luis is the BEST mortgage broker on this planet! If you’re looking to buy a home, definitely give him a call. Chris will go above and beyond to try to help you!”
— Tanya W.
★★★★★
“I had an opportunity to work with Chris when I did my refinancing. I would highly recommend his services to anyone. He was efficient, helpful and very prompt in responding.”
— Aurora T.
★★★★★
“Julia Luis has been very professional and has been very helpful during the process! Anyone looking for someone to assist them in their future adventures needs to have her on your side! Thank you for being there for me!!”
— Joel F.

FAQ

Credit Score & Mortgage — Frequently Asked Questions

What is the minimum credit score to get a mortgage?
The minimum credit score to get a mortgage depends on the program. FHA loans allow scores as low as 500 with a 10% down payment. VA loans have no formal minimum, though 500 is the practical floor. USDA allows down to 550. Conventional loans generally require 620. Non-QM programs can go as low as 550 depending on your overall financial profile. The short answer: if your score is 500 or above, you likely have at least one program available to you.
Which credit score do mortgage lenders use?
Mortgage lenders pull your credit score from all three bureaus — Equifax, Experian, and TransUnion. They use the middle of the three scores. If only two scores are returned, they use the lower of the two. If you are applying with a co-borrower, the lender uses the lower of the two middle scores. This is why knowing all three of your bureau scores matters before you apply.
Does checking my credit score hurt my mortgage application?
Checking your own credit score through a consumer service like Credit Karma does not affect your score at all — this is called a soft inquiry. When a mortgage lender pulls your credit, it creates a hard inquiry, which can temporarily lower your score by a few points. However, multiple mortgage-related hard inquiries within a short window (typically 14–45 days) are treated as a single inquiry by the credit bureaus because they understand you are rate shopping, not accumulating new debt.
Can I get a mortgage with a 580 credit score?
Yes. A 580 credit score qualifies for an FHA loan with just 3.5% down. It also qualifies for many Non-QM programs depending on your income type and assets. The rate will be higher than what a borrower with a 700+ score receives, but the loan is fully available. A 580 is one of the most common scores we work with and we close these loans regularly.
How can I improve my credit score before applying for a mortgage?
The fastest ways to improve your credit score before a mortgage application are: paying down revolving balances (credit cards) to below 30% of the credit limit, making sure every account is current and on time, disputing any errors on your credit report, and avoiding opening any new accounts or making large purchases before closing. In some cases we can identify specific items where a targeted payoff or dispute can move your score 20–40 points in 30–60 days. Call us and we can go through your report together.
Does my credit score affect my mortgage interest rate?
Yes — significantly. Conventional loans use risk-based pricing, which means your interest rate is directly tied to your credit score and loan-to-value ratio. FHA loans use a flat rate structure with less score sensitivity, but borrowers with higher scores still tend to get better overall pricing when you factor in mortgage insurance. The difference between a 640 score and a 740 score can mean a rate that is 0.5% to 1% higher, which translates to hundreds of dollars per month on a large loan.
If we are buying together, whose credit score counts?
The lower one, in almost every case. Lenders take the middle score of each borrower and then qualify the file on the lowest of those. So a 780 and a 610 buying together is a 610 file, not a 695 one. That surprises couples regularly, and it is worth knowing before you decide who goes on the application — sometimes one borrower applying alone qualifies for better terms, though you then lose the second income for the debt ratios. It is a real trade-off and worth running both ways before you choose.
Can my credit score change between pre-approval and closing?
Yes, and it gets re-checked before you close. This is why the advice is to change nothing: no new cards, no financing the furniture, no paying off and closing an old account because it feels tidy. Closing your oldest card shortens your credit history and can cost you points at the worst possible moment. If something has to change — a car dies, a card gets stolen — tell your loan officer before you act, not after. Almost everything is manageable in advance and almost nothing is manageable the week of closing.
Why do the three bureaus give me three different scores?
Because not every creditor reports to all three, and they do not report on the same day. A card that reports a paid-down balance to one bureau on the 3rd and another on the 20th produces two different pictures of you in the same month. Lenders handle this by pulling all three and using the middle number. It also means a single error — an account that is not yours, a payment marked late that was not — may sit on one report and not the others, which is worth checking if one of your three is oddly out of step with the rest.
I have never had a credit card. Is no score the same as a bad score?
No, and it is a better position than most people assume. A thin file means there is not enough history to generate a score, not that the history is bad. FHA in particular allows a file to be built from non-traditional credit — twelve months of rent paid on time, utilities, insurance, a phone account — documented and underwritten by a person rather than a system. It takes more paperwork and it takes longer, so start the conversation earlier than you would otherwise. What it is not is a dead end.

Related Resources

Comparing Your Options?

Credit scoreWhat every program needs, in one tableYou are hereFHA minimumsThe 500 and 580 thresholds in detailCompareConventional loansIf you are at 620 or aboveCompareNear-primeAfter a credit event, or outside agency rulesCompare
Related Credit ProgramsFHA minimumsFHA loansConventional loansNear-prime loansHomeStyle renovation
Credit Score — Mortgage-World.com, NMLS #1630225Mortgage-World.com
Licensed mortgage broker · NMLS #1630225

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Licensed in
NJ · CT · FL
Broker license
NMLS #1630225
Florida license
MLB 1987
Family owned since
2017
Office
Ridgefield, NJ

Find out what your credit score actually opens

A licensed loan officer will pull your real mortgage score — the one lenders use, not the one in a free app — and tell you which programs on this page you already qualify for today, and which threshold is closest if you are just under one.

What You Need
✓500 with FHA, 620 conventional, no minimum on a VA loan
✓The mortgage score is not the app score
✓No hard credit pull to check
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Credit Score guide by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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