What Credit Score Do You Need for a Mortgage in 2026?
The published minimums — 580 for FHA, 620 for conventional — are the floor, not the goal. The pricing difference between a 620 borrower and a 740 borrower can exceed $80,000 over the life of a 30-year loan.
TL;DR
- FHA minimum: 580 FICO with 3.5% down, 500 FICO with 10% down. Most lenders overlay to 600–640.
- Conventional minimum: 620 FICO at most lenders; some boutique programs to 600.
- VA and USDA: No federal minimum; lenders typically require 580–640.
- Best pricing: 740+ on conventional; 580+ on FHA is flat-priced.
- Three bureau scores: Lenders use the middle of three FICO scores (Equifax, Experian, TransUnion). With two borrowers, they take the lower middle score.
Which FICO score lenders actually use
Mortgage lenders don't use the FICO score from your credit card app or Credit Karma. They pull a "tri-merge" credit report with FICO scores from all three bureaus and use the middle of the three as your qualifying score. If you and a co-borrower both apply, the lender uses the lower of the two middle scores.
The mortgage industry primarily uses older FICO model versions — typically FICO 2 (Experian), FICO 4 (TransUnion), and FICO 5 (Equifax). These can score 20–40 points lower than the FICO 8 or FICO 9 you see on consumer apps because they treat collections, medical debt, and authorized-user accounts differently.
Practical implication: If Credit Karma shows you at 695, your mortgage qualifying score may be 670 or 680. Pull a full mortgage-grade tri-merge before assuming where you stand.
Minimum scores by loan program
| Program | Federal minimum | Typical lender minimum | | --- | --- | --- | | FHA 3.5% down | 580 | 600–640 | | FHA 10% down | 500 | 580–600 | | Conventional standard | 620 | 620–640 | | Conventional HomeReady/Home Possible | 620 | 620 | | VA | None | 580–620 | | USDA | None | 640 typical | | Jumbo | None | 680–740 typical | | Non-QM (bank statement) | Varies | 620–660 |
The federal minimums are the floor. Every lender overlays additional requirements based on their investor relationships, risk appetite, and what loans they can profitably sell on the secondary market. A 580 FHA application that gets declined at one lender may approve at another with looser overlays.
Conventional pricing bands
Fannie Mae and Freddie Mac charge Loan-Level Price Adjustments (LLPAs) based on credit score and LTV. The fees are baked into the rate you see at lock. The bands have changed over the years; current LLPAs for purchase loans look approximately like this:
| FICO | 95.01–97% LTV | 80.01–85% LTV | 75.01–80% LTV | | --- | --- | --- | --- | | 760+ | 0.375% | 0.000% | 0.000% | | 740–759 | 0.625% | 0.250% | 0.000% | | 720–739 | 0.875% | 0.500% | 0.250% | | 700–719 | 1.125% | 0.750% | 0.375% | | 680–699 | 1.500% | 1.000% | 0.500% | | 660–679 | 1.750% | 1.250% | 1.000% | | 640–659 | 1.875% | 1.500% | 1.250% | | 620–639 | 2.250% | 1.750% | 1.500% |
Lenders convert these point charges into rate. As a rough rule, 0.50 in points equals about 0.125% in rate at typical pricing.
What that means in dollars
Two borrowers buying a $350,000 home with 10% down:
- Borrower A: 760 FICO → approximate rate 6.625%
- Borrower B: 660 FICO → approximate rate 7.500% (after LLPAs roll in)
| Metric | A (760 FICO) | B (660 FICO) | | --- | --- | --- | | Loan amount | $315,000 | $315,000 | | Monthly P&I | $2,015 | $2,202 | | Monthly difference | — | +$187 | | 5-year cost difference | — | +$11,220 | | 30-year cost difference | — | +$67,320 |
That gap is the cost of credit. It's why mortgage professionals encourage borrowers to delay 60–90 days to push the score into the next band when the math works.
FHA pricing is flat above 580
FHA does not use LLPAs in the same way. A 600 FICO FHA borrower and a 780 FICO FHA borrower receive roughly the same base rate, though the lender may add a small adjustment for very low scores. This flat pricing is why FHA is the dominant choice for borrowers in the 580–680 band — they get the same rate as anyone else in the program.
The cost FHA borrowers pay instead is the mortgage insurance premium, which is also flat across credit bands. See our FHA vs. conventional comparison for the lifetime cost math.
What's in a credit score — and what moves the needle
FICO weights:
- Payment history: ~35%
- Amounts owed (utilization): ~30%
- Length of credit history: ~15%
- Credit mix: ~10%
- New credit: ~10%
For a borrower trying to push from 660 to 700 in 60 days before applying:
- Pay revolving balances below 10% utilization on each card. This is the fastest legal lift. Most cards report on the statement closing date, so pay early.
- Don't close old accounts. Closing an old card reduces average age of accounts and your total credit limit, both of which can drop the score.
- Dispute legitimate errors. Pull all three bureau reports at annualcreditreport.com and dispute anything you don't recognize or that is older than 7 years (10 for Chapter 7 bankruptcy).
- Don't open new credit. Each hard inquiry costs a few points and can compound during the rate-shopping window.
- Get added as an authorized user on a family member's old, low-utilization card. The age and clean history can add 10–20 points within a single reporting cycle.
What disqualifies a file beyond the score
A 720 FICO can still get declined for:
- Recent late mortgage payments (60+ days late in the last 12 months)
- Open collections above $5,000 (FHA) or $2,000 (conventional, often required to be paid)
- Active charge-offs or judgments
- Tax liens in active collection (must be in IRS-approved payment plan with 3 months of payments)
- CAIVRS hit for federal debt (defaulted student loans, prior FHA foreclosure, owed federal taxes)
- Recent bankruptcy or foreclosure before the seasoning period
The credit score is one input, not the entire decision.
Bankruptcy and foreclosure seasoning
| Event | FHA wait | Conventional wait | VA wait | | --- | --- | --- | --- | | Chapter 7 bankruptcy | 2 years from discharge | 4 years | 2 years | | Chapter 13 bankruptcy | 1 year of payments + trustee approval | 2 years from discharge / 4 from dismissal | 1 year + trustee approval | | Foreclosure | 3 years | 7 years | 2 years | | Short sale | 3 years | 4 years | 2 years | | Deed in lieu | 3 years | 4 years | 2 years |
"Extenuating circumstances" — a documented one-time event like a medical emergency or death of a primary wage earner — can shorten some FHA waiting periods. Conventional rarely flexes on these.
What "rapid rescore" does and doesn't do
A rapid rescore is a service where the lender's credit vendor expedites updates to your credit report — typically when you pay down a balance or remove an error. It can move scores within 3–7 days instead of waiting for the next reporting cycle.
It does not delete legitimate negative items. It does not add fake positive history. It only accelerates the reporting of changes that are already happening. Cost is typically $25–$50 per account, paid by the lender (cannot be charged to the borrower by federal rule).
Two-borrower situations
If you and a spouse apply together and your credit profiles are very different, run the math both ways:
- Application 1: Both borrowers, both incomes, lower middle score governs pricing.
- Application 2: Just the higher-credit borrower, with only their income, higher score governs pricing.
If the higher-credit borrower alone qualifies for enough loan, the rate savings often exceed the income capacity loss. A 760-credit borrower with $80K income alone may get better long-term economics than a 640/760 pair with $130K combined.
The non-borrowing spouse can still be on title without being on the loan in most states. Talk to a loan officer about the trade-off.
When to wait, when to apply
Wait if:
- You're within 20 points of the next pricing band (e.g., 718 trying to reach 720, or 658 trying to reach 660)
- A collection or charge-off is over 6 years old and likely to fall off soon
- You're paying down a high-utilization card and the next statement will report a lower balance
Apply now if:
- Your score is stable and not improving meaningfully month-over-month
- A property opportunity is time-sensitive
- You're in a market where rates moving up would cost more than the score improvement saves
Use our affordability calculator to model both scenarios.
Sources & verification
- Consumer Financial Protection Bureau — Credit scores and reports
- Fannie Mae Selling Guide — credit requirements
- HUD FHA Handbook 4000.1 — credit underwriting
- annualcreditreport.com — free annual credit reports
- NMLS Consumer Access
Disclosure
MLO Finder is a directory of mortgage loan officers, not a lender. We don't originate loans, set rates, or guarantee approval. Verify any loan officer's current licensing through NMLS Consumer Access before working with them. Information here is educational and not personalized financial advice — consult a licensed loan officer or financial planner for guidance specific to your situation.