Your credit score does more than determine whether you qualify for a mortgage. It controls how much that mortgage costs you every single month, and how much you pay over the life of the loan.
A borrower with a 760 credit score and a borrower with a 620 score might both qualify for a $300,000 conventional loan. But the borrower with the lower score could pay more than $100,000 extra in interest over 30 years. That gap is real, and it starts with understanding what lenders consider a “good” score for a mortgage.
This guide breaks down the credit score tiers that matter for mortgage approval, shows you exactly how your score affects your rate, and walks you through practical steps to reach a better tier before you apply.
What Credit Score Do Mortgage Lenders Consider “Good”?
Most mortgage lenders use FICO scores, which range from 300 to 850. According to FICO’s own scoring model, a “good” score falls between 670 and 739. A score of 740 or higher is considered “very good,” and anything above 800 is “exceptional.”
But here is what matters for mortgage borrowers specifically: a score of 740 or higher unlocks the best interest rates from most lenders. That is the threshold where you move from “qualified” to “preferred borrower” status.
Below is how FICO categorizes credit score ranges, along with what each range means for your mortgage application:
| FICO Score Range | Rating | Mortgage Impact |
|---|---|---|
| 800-850 | Exceptional | Best rates available; lowest PMI costs |
| 740-799 | Very Good | Near-best rates; strong approval odds |
| 670-739 | Good | Competitive rates; approved by most lenders |
| 580-669 | Fair | Higher rates; may need FHA or larger down payment |
| 300-579 | Poor | Limited options; FHA with 10% down required below 580 |
For a more detailed breakdown of every credit score tier, see our complete credit score chart and ranges guide.
Minimum Credit Scores by Mortgage Type
Different loan programs have different minimum requirements. The minimum gets your foot in the door, but it does not get you the best deal. Here is what each program requires:
Conventional Loans
Conventional mortgages backed by Fannie Mae and Freddie Mac require a minimum 620 credit score. Borrowers with scores of 740 or above receive the lowest interest rates and the smallest private mortgage insurance (PMI) premiums. First-time buyer programs like Fannie Mae HomeReady and Freddie Mac Home Possible allow down payments as low as 3% at the 620 minimum.
FHA Loans
Federal Housing Administration loans have two tiers. A score of 580 or higher qualifies you for the minimum 3.5% down payment. Scores between 500 and 579 require a 10% down payment. Below 500, you cannot qualify for an FHA loan. All FHA loans carry mortgage insurance premiums (MIP): 1.75% upfront plus 0.55% annually.
VA Loans
The Department of Veterans Affairs does not set an official minimum credit score. In practice, most VA lenders require between 580 and 620. VA loans offer zero down payment, no PMI, and interest rates that typically run 0.25% to 0.5% lower than conventional loans. Eligibility is limited to veterans, active-duty service members, and qualifying spouses.
USDA Loans
USDA loans also have no official credit score minimum, but most lenders require 640 or higher for automated approval. Borrowers below 640 can apply through manual underwriting, though the process takes longer. These loans require zero down payment and are available to buyers in eligible rural and suburban areas with household income at or below 115% of the area median.
Jumbo Loans
Jumbo loans exceed the conforming loan limit of $766,550 in most areas for 2026. They typically require credit scores of 700 to 720 or higher, down payments of 10% to 20%, and six to twelve months of liquid cash reserves.
For a full breakdown of minimum scores and requirements for each loan type, check out our guide on what credit score you need to buy a house.
How Your Credit Score Affects Your Mortgage Rate
The difference between credit score tiers is not just about approval. It directly determines your monthly payment and total loan cost. Here is an example using a 30-year fixed-rate mortgage on a $300,000 loan based on average rate data:
| FICO Score | Estimated Rate | Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 760-850 | 6.49% | $1,896 | $382,560 |
| 700-759 | 6.71% | $1,936 | $396,960 |
| 680-699 | 6.89% | $1,969 | $408,840 |
| 660-679 | 7.10% | $2,007 | $422,520 |
| 640-659 | 7.54% | $2,088 | $451,680 |
| 620-639 | 8.09% | $2,189 | $487,960 |
A borrower with a 760 score pays $1,896 per month. A borrower with a 620 score pays $2,189 per month. That is $293 more every month, or roughly $105,400 more over the life of a 30-year loan. Even a 40-point improvement from the 660 range to the 700 range could save you more than $25,000 in total interest.
What Score Do You Need for the Best Mortgage Rates?
If you are aiming for the lowest possible mortgage rate, target a FICO score of 740 or higher. At that level, you qualify for the most competitive rates from conventional lenders, and you pay the lowest PMI premiums if your down payment is under 20%.
The jump from 740 to 800 provides a smaller benefit. Lenders typically group 740-plus borrowers into the same top pricing tier. So while an 800 score looks better on paper, the mortgage rate advantage over a 750 score is minimal.
The biggest rate improvements happen in these ranges:
- 620 to 660: Moving above 660 drops your rate noticeably and opens more lender options
- 660 to 700: This range often shaves 0.3% to 0.5% off your interest rate
- 700 to 740: Crossing 740 unlocks the best-tier pricing at most lenders
If your score is currently in the 600s, even a 40 to 60 point increase could save you tens of thousands over the life of your loan. Our guide on how to improve your credit score fast covers seven steps that can move your score within weeks.
Beyond Your Score: Other Factors Lenders Evaluate
Your credit score is the headline number, but lenders look at more than just that number when deciding your rate and terms. Here are the other factors that affect your mortgage approval:
- Debt-to-income ratio (DTI): Most lenders want your total monthly debt payments (including the new mortgage) to stay below 43% of your gross monthly income. A lower DTI can sometimes offset a borderline credit score.
- Down payment size: A larger down payment reduces the lender’s risk. Putting 20% down eliminates PMI on conventional loans and can help you qualify with a slightly lower score.
- Employment history: Lenders typically want to see at least two years of steady employment or income documentation.
- Cash reserves: Having three to six months of mortgage payments in savings strengthens your application, especially for jumbo loans.
- Loan-to-value ratio (LTV): A lower LTV (meaning more equity) reduces lender risk and can improve your offered rate.
If your credit score is on the edge of a tier, strengthening these other areas can help you get approved at better terms. For instance, if your score is 615, a strong DTI ratio and 10% down payment may help you qualify for a conventional loan even though 620 is the minimum.
How to Improve Your Credit Score Before Applying for a Mortgage
If your score is not where you want it, the good news is that targeted credit repair can move your score in a matter of weeks or months. Here are the most effective steps:
- Check your credit reports for errors: According to a Federal Trade Commission study, one in five consumers had an error on at least one credit report. Disputing inaccurate late payments, incorrect balances, or accounts that do not belong to you can produce score increases of 20 to 100 points within 30 days. Start with our guide on which credit report errors to dispute first.
- Pay down credit card balances: Your credit utilization ratio (the percentage of available credit you are using) accounts for about 30% of your FICO score. Dropping your utilization below 30%, and ideally below 10%, can boost your score by 30 to 50 points within one to two billing cycles.
- Avoid new credit applications: Each hard inquiry can lower your score by a few points. In the months leading up to a mortgage application, avoid opening new credit cards, auto loans, or other credit accounts.
- Keep old accounts open: The length of your credit history accounts for about 15% of your score. Closing old credit cards shortens your average account age and can lower your score.
- Remove collections if possible: Paid or settled collections still affect your score. If you have collections accounts, removing them from your credit report can provide a significant boost.
- Consider a rapid rescore: If you are already working with a mortgage lender, ask about a rapid rescore. This process updates your credit file within days after you make changes (such as paying down a balance), rather than waiting for the next reporting cycle.
Most borrowers can move from the 580 range to 620 (conventional loan qualifying) within three to six months. Climbing from 620 to 700 for the best conventional terms typically takes six to twelve months. For a full timeline breakdown, see our guide on how long it takes to improve your credit score.
Should You Wait to Improve Your Score or Apply Now?
This depends on where your score sits and how urgently you need to buy.
Apply now if:
- Your score is 740 or higher and you already qualify for top-tier rates
- You need to buy within a specific timeframe (relocating for a job, lease expiring, etc.)
- Home prices in your market are rising faster than you can save
Wait and improve your score if:
- Your score is in the 620 to 699 range and a few months of credit repair could save you significant interest
- You have identifiable errors or high credit card balances you can address quickly
- You can continue renting without financial strain while you prepare
A 40-point score improvement from 660 to 700 on a $300,000 loan could save you around $25,000 in total interest. If you can achieve that improvement in three to six months, the math strongly favors waiting. If your score is already competitive, applying sooner locks in current rates and gets you building equity.
Frequently Asked Questions
Is 700 a good credit score for a mortgage?
Yes, 700 is a good credit score for a mortgage. It qualifies you for conventional, FHA, VA, and USDA loans with competitive interest rates. However, you will not receive the absolute best rates until you reach 740 or higher. A score of 700 puts you in a strong position but leaves room for savings with a modest score improvement.
Can I get a mortgage with a 580 credit score?
Yes. An FHA loan allows borrowers with a 580 score to qualify with a 3.5% down payment. Some VA lenders also approve borrowers at 580. Keep in mind that a lower score means a higher interest rate and higher mortgage insurance costs. If you can raise your score to 620 or above, you unlock conventional loan options with better long-term terms.
What is the lowest credit score to qualify for any mortgage?
The lowest credit score for a mortgage is 500, through an FHA loan with a 10% down payment. Below 500, no standard mortgage program will approve you. If your score is in this range, focus on credit repair to raise it to at least 580, where you qualify for FHA with a much smaller down payment.
Does checking my credit score lower it?
No. Checking your own credit score is considered a soft inquiry and has no effect on your score. Only hard inquiries from lenders affect your score, and even those typically cause a small, temporary dip. You can check your score as often as you like without any penalty. Learn more about the difference in our hard inquiries vs. soft inquiries guide.
How fast can I raise my credit score for a mortgage?
The speed depends on what is dragging your score down. Disputing credit report errors can raise your score by 20 to 100 points within 30 days. Paying down high credit card balances typically adds 30 to 50 points within one to two months. Moving from 580 to 620 often takes three to six months. For a detailed timeline, read our guide on how long it takes to improve your credit score.
Do all three credit bureaus need to show a good score?
Mortgage lenders pull scores from all three bureaus (Experian, Equifax, and TransUnion) and typically use the middle score for qualification. If you are applying with a co-borrower, the lender uses the lower of the two applicants’ middle scores. This means you should check all three reports and address any discrepancies before applying.
Take the Next Step Toward Mortgage-Ready Credit
A good credit score for a mortgage is 670 or higher, with 740 being the sweet spot where you unlock the best rates. If you are not there yet, that gap is closable. Disputing errors, lowering your credit card balances, and avoiding new accounts are the three fastest ways to move your score in the right direction.
