Credit Score Minimums by Loan Type: FHA, VA, and Conventional

Introduction

There's no single credit score you need for a mortgage. It depends on which loan type you're applying for. FHA will approve a score as low as 500 with a bigger down payment. VA lenders typically want 620 to 670, even though the VA itself sets no official minimum. Conventional loans, backed by Fannie Mae and Freddie Mac standards, generally want 620 or higher — and the best rates go well above that.

If you're a year or less out from applying, knowing which threshold applies to you changes how you spend the next few months. Below is the minimum for each loan type, how lenders actually decide which of your scores counts, and what to do this week if you're short of where you need to be.

FHA Loans: How Low Can Your Score Go?

FHA loans exist specifically to open the door for borrowers that conventional lending would turn away, and the credit score requirements reflect that. (https://www.nerdwallet.com/mortgages/learn/fha-loan-requirements). Fall between 500 and 579, and you can still get approved — you'll just need to put down 10% instead.

FHA guidelines also cap your debt-to-income ratio at 43% in most cases, though the (https://www.nerdwallet.com/mortgages/learn/fha-loan-requirements) like strong savings, stable employment, or built-up equity. The property itself has to pass an FHA appraisal for health and safety standards — separate from the value appraisal a conventional loan requires.

The tradeoff for that lower entry bar is mortgage insurance. FHA borrowers pay a 1.75% upfront mortgage insurance premium (MIP) rolled into the loan balance, plus a monthly premium. Put down less than 10%, and (https://www.bankrate.com/mortgages/fha-vs-conventional-loans/) — it doesn't cancel automatically the way conventional PMI does. Put down 10% or more, and it cancels after 11 years. On a $400,000 home with 5% down, Bankrate's comparison found the FHA borrower paying more per month than the conventional borrower despite a lower interest rate — roughly $6,432 more over eight years once MIP is factored in.

VA Loans: No Official Minimum, But Lenders Have One

The Department of Veterans Affairs doesn't set a minimum credit score for VA loans. That decision is left entirely to individual lenders. In practice, that flexibility still has a ceiling: (https://www.experian.com/blogs/ask-experian/va-loan-requirements/), though borrowers below that range can sometimes still qualify in exchange for a higher rate or a larger down payment.

Why can VA lenders afford to be looser than conventional lenders? The government guarantee behind the loan shifts risk away from them. (https://www.experian.com/blogs/ask-experian/va-loan-requirements/), and most eligible VA borrowers can buy with no down payment at all.

That flexibility isn't free, though. First-time VA borrowers pay a funding fee — 2.15% of the loan amount on a first use — rolled into the loan. But the interest-rate advantage VA loans typically carry can outweigh that cost over time: one comparison found a VA loan at 5.35% saving a borrower more than $45,000 over the loan term versus a conventional loan at 6.35%. A stronger score inside that 620-670 lender overlay still buys a better rate, even without an official government floor.

Conventional Loans: The 620 Benchmark

Conventional loans follow standards set by Fannie Mae and Freddie Mac, and 620 is the credit score most lenders treat as the floor. Some lenders will go as low as 580; others set their own bar at 660 or higher. Down payments can start as low as 3% for qualified first-time buyers, though a larger down payment strengthens your application regardless of score.

Here's the structural advantage conventional has over FHA: what happens to your mortgage insurance once you build equity. (https://www.bankrate.com/mortgages/fha-vs-conventional-loans/) — no refinance required, unlike FHA's MIP. Put 20% down at purchase and you skip PMI from day one.

Score matters more here than in either government-backed option. Lenders reserve their sharpest rates for borrowers well above the 620 minimum, typically 740 and up.

How Lenders Actually Use Your Score

It's worth understanding the mechanics behind the number a lender actually sees, however confident you are in your credit standing. (https://www.consumerfinance.gov/ask-cfpb/does-my-credit-score-affect-my-ability-to-get-a-mortgage-loan-or-the-mortgage-rate-i-pay-en-319/) — not the average, and not your highest — to set your rate. An error dragging down just one bureau's report can cost you real money. That's one more reason to check your (/tri-merge-credit-report-mortgage-explained) before you apply, not after a lender pulls it. Mortgage lenders are also shifting toward newer scoring models; see our breakdown of (/mortgage-fico-2-4-5-vs-fico-10t-gse-transition) for how that transition affects what shows up on your file.

The dollar impact of where you land is real. (https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/) — a gap that works out to roughly $136 more per month on a $350,000 loan. Meeting the minimum gets you in the door. It doesn't get you the loan's best terms.

Frequently Asked Questions

What credit score do I need for an FHA loan?

You can qualify with a score as low as 500 if you put 10% down, or 580 if you want the standard 3.5% down payment. Lenders also look at your debt-to-income ratio, which FHA guidelines cap at 43% in most cases.

Does the VA set a minimum credit score for VA loans?

No. The Department of Veterans Affairs backs the loan but doesn't set a credit floor — that's left to individual lenders. In practice, most VA lenders want to see a score in the 620-670 range, though exceptions exist for borrowers with strong compensating factors.

What's the minimum credit score for a conventional loan?

620 is the common threshold most lenders use, following Fannie Mae and Freddie Mac guidelines. Some lenders will go lower, but you'll typically need 740 or higher to unlock the best available rate.

Which of my three credit scores does a mortgage lender actually use?

Lenders pull scores from all three bureaus — Equifax, Experian, and TransUnion — and use the middle number to price your loan, not the average and not your highest score.

If my score is below the minimum for the loan I want, what should I do first?

Pay down revolving balances to lower your utilization, catch up any past-due accounts, and pull your credit report to dispute errors before you apply. Even a 20-30 point improvement can move you into a better rate tier or a lower down-payment requirement.

Conclusion

There's no single "right" credit score for a mortgage — the right number depends on which loan type fits your down payment and your finances. FHA opens the door lowest. VA rewards eligible borrowers with lender flexibility rather than a government floor. Conventional wants 620 and up but pays off in cancelable insurance and better rate tiers at the high end. Whichever path you're on, the minimum is just the entry point, not the number that gets you the best deal. If you've got runway before you apply, our 12-month pre-mortgage credit plan walks through how to close the gap. Want help closing it faster? (/#top-companies) to see which service fits your situation.