To qualify for a home loan, the credit score needed depends on the type of mortgage and the lender, but generally:
- Conventional loans typically require a minimum credit score of around 620 to qualify
- FHA loans (government-backed) allow lower credit scores, often as low as 500 with a 10% down payment, or 580 with a 3.5% down payment
- VA loans usually require a minimum credit score of about 620 , though some lenders may accept scores in the 500s
- USDA loans do not have a strict minimum score, but lenders generally prefer scores of 640 or higher for faster approval
- Jumbo loans generally require higher scores, often around 700 or more
Higher credit scores (above 670) improve the chances of loan approval and securing better interest rates and terms
. Other factors such as debt-to-income ratio, income, and down payment size also impact loan approval and conditions
. In summary, a credit score of at least 620 is commonly needed for most conventional home loans, but government-backed loans provide options for borrowers with lower scores, sometimes as low as 500 with appropriate down payments
