Mortgage Loans

There is no one size fits all rule regarding credit scores. Depending on the mortgage type you seek, you will need a different credit score to qualify.
Generally speaking, you'll need a credit score of at least 620 to get a house loan.

The minimum credit score you need to qualify for a mortgage in 2023 depends on the type of home loan you're trying to obtain.

Conventional Mortgages are best for those with good or excellent credit and offer competitive interest rates and flexible repayment periods.

FHA home loans are insured by the Federal Housing Administration and offer low down payments and equity refinances.
You'll need a minimum credit score of 580 to qualify for an FHA loan with a 3.5% down payment. Some lenders may have their own minimum credit score requirements.
If you apply for a mortgage with your spouse, the lender will use the lower two middle credit scores.

A VA home loan can be a smart financial move if you meet the requirements. These loans don't require a down payment and are available to borrowers with lower credit scores.

The U.S. Department of Agriculture offers USDA home loans to promote rural development. These loans are popular among repeat and first-time home buyers because they don't require a down payment.

In 2023, the conforming loan limit will be $715,000. If you live in a high-cost area, the limit will be $1,073,000.
Because jumbo mortgages allow for such a high loan amount, lenders can be stricter about their minimum credit score requirements.

Mortgage lenders use FICO® Scores to determine creditworthiness. They are based on variables on your credit reports from the three major credit bureaus.
When approving a mortgage, lenders look at your income, debt-to-income ratio, down payment, savings, and employment history. You are more likely to qualify for a mortgage if you have a high down payment, a low debt-to-income ratio, and a long work history.

Fortunately, it's possible to boost your credit score. Check your credit report for errors, monitor your credit score, become an authorized user on an existing credit card, pay your bills on time, and don't close your credit card account once you pay it off.

The lowest credit score you can get for a mortgage depends on the type of loan and the lender.

If your credit score is low, you may have to pay higher interest rates and make larger down payments to qualify for a mortgage.

Your credit score helps determine your mortgage interest rate and loan terms. Improving your score can reduce your monthly mortgage payment.

The higher your credit score, the easier it will be to get a better interest rate on your mortgage.