What credit score do I need for a mortgage?

The minimum is 500 for FHA (with 10% down) or 580 for FHA (with 3.5% down). Conventional loans typically require 620+. For the best rates, aim for 740+. VA loans have no official minimum but most lenders require 620.

How much does a higher credit score save on a mortgage?

On a $350,000 30-year mortgage, a 760 score vs 660 score can mean a rate difference of about 0.5%, saving roughly $130/month or $47,000 over the life of the loan.

How quickly can I improve my credit score?

You can see meaningful improvement in 30-90 days by paying down credit card balances and disputing errors. Paying cards to below 10% utilization can boost scores 20-40 points within one billing cycle.

Does checking my credit score hurt it?

No, checking your own credit is a soft inquiry and does not affect your score. When lenders check your credit during a mortgage application, that is a hard inquiry, but multiple mortgage inquiries within 14-45 days count as one.

Credit Score Guide: How Your Score Affects Your Mortgage

Your credit score is the single biggest factor in your mortgage rate. Learn what score you need, how scores are calculated, and proven strategies to improve yours before applying.

Credit Score Tiers & Mortgage Impact

Lenders use your FICO score to determine your interest rate and loan eligibility. Even a small score improvement can save thousands over the life of your loan. Here is how different score ranges affect your options:

Score Range	Rating	Rate Impact	Loan Options
760+	Excellent	Best available rates	All loan types, best terms
700-759	Good	+0.125-0.25%	All loan types, good terms
660-699	Fair	+0.25-0.50%	Most loans, some restrictions
620-659	Below Average	+0.50-1.00%	Conventional (limited), FHA
580-619	Poor	+1.00-1.50%	FHA only (3.5% down)
500-579	Very Poor	+1.50%+	FHA only (10% down required)

How Much Does Credit Score Really Matter?

$47K

Saved Over 30yrs (760 vs 660)

$130/mo

Monthly Savings (760 vs 660)

0.50%

Avg Rate Difference

30-90

Days to Improve 40+ Points

What Makes Up Your Credit Score

Payment History (35%)

On-time payments are the most important factor. Even one 30-day late payment can drop your score 60-100 points. Set up autopay on all accounts.

Credit Utilization (30%)

The percentage of available credit you are using. Keep balances below 30% of limits — under 10% is ideal. Pay down credit cards before applying for a mortgage.

Credit History Length (15%)

Average age of your accounts matters. Do not close old credit cards before applying — it shortens your history and increases utilization.

Credit Mix (10%)

Having different types of credit (cards, auto loans, student loans) shows you can manage various obligations. Do not open new accounts just for this.

New Credit (10%)

Multiple hard inquiries in a short period can lower your score. Exception: mortgage shopping within 14-45 days counts as one inquiry.

How to Improve Your Credit Score

Quick Wins (30-90 Days)

Pay down credit card balances to below 30% utilization — this is the fastest score boost
Dispute errors on your credit report at AnnualCreditReport.com — errors are surprisingly common
Become an authorized user on a family member's old, low-balance card
Do NOT close old accounts or open new ones before applying
Set up autopay on every account to prevent late payments
Ask for a credit limit increase (without a hard pull) to lower utilization

Check today's rates to see what your score qualifies for, or explore bad credit mortgage options if your score needs work. Use our mortgage calculator to estimate payments at different rates.

How Credit Scores Affect Mortgage Rates