Mortgage Credit Score Guide for Best Rates & Loan
Justin Reynolds
Key Takeaways
- Learn about mortgage credit score bands
- Understand loan type minimums
- Find out which scores lenders use
Learn about the impact of mortgage credit scores on loan approvals and interest rates, with insights on score bands, loan types, and lender scoring.
| Credit Score Range | Loan Approval Potential |
|---|---|
| Below 620 | Limited loan options, higher costs |
| 620 to 679 | More loan choices; may face increased costs |
| 680 to 739 | Best pricing typically appears in this range |
| 740+ | Optimal loan terms and lowest rates available |
Loan Types: A Comparison
- Conventional loans commonly start at 620
- FHA allows scores as low as 580 for 3.5% down payments, and 500 with 10% down
- VA sets no official minimum, but lenders may require scores above 620
- USDA has no program set minimum, but lenders often request scores above 640
Which Score Do Lenders Use?
Lenders may use the representative score, lower of two, or middle of three to evaluate creditworthiness. As of July 2026, VantageScore 4.0 is rolling out first, followed by FICO 10T. Note that consumer app scores can differ from lender scores.
How Does Your Score Impact Rates?
Generally, the best pricing appears in the mid to high 700s. Borrowers with scores between 620 and 680 may have fewer options or higher costs.
Disclaimer
This information is provided for educational purposes only and does not guarantee loan approvals or interest rates. Individual lenders set their own standards and requirements.
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