Requirements by loan type
Your credit score plays a major role in determining which mortgage programs you qualify for—and at what cost. But the good news is many buyers overestimate how high their score needs to be. Today’s mortgage guidelines are flexible, and there are loan options available across a wide credit range.
Here’s a breakdown of what lenders look for and how different loan types approach credit scores.
FHA Loan Credit Score Requirements
FHA loans are known for being friendly to first-time buyers and those rebuilding credit.
Typical minimums include:
- 580 and above: Qualifies for the 3.5% down payment option
- 500–579: May still qualify with 10% down
FHA’s more lenient credit approach makes it one of the most accessible programs for buyers who may not fit conventional guidelines.
Conventional Loan Credit Score Requirements
Conventional loans usually require higher scores because they’re backed by private lenders rather than government insurance.
General guidelines:
- 620+ minimum score required
- 740+ scores receive the best pricing and rate adjustments
- Lower scores may face higher mortgage insurance or rate premiums
The stronger your credit, the better the terms. But many buyers qualify comfortably with scores in the 620–660 range.
VA Loan Credit Score Requirements
VA loans—available to eligible Veterans, active-duty service members, and qualifying spouses—offer remarkable flexibility.
Key points:
- Most lenders require a minimum score around 580–600
- The VA itself has no official minimum score
- Stronger credit can improve interest rates and reduce overall cost
VA loans remain one of the most affordable options in today’s market.
How Credit Score Impacts Your Rate & Pricing
Every loan program uses a tiered pricing system, meaning your interest rate and mortgage insurance cost change based on your score.
A few general rules:
- Higher scores = lower interest rates
- Higher scores = lower PMI (private mortgage insurance) on conventional loans
- Mid-range scores may still qualify but with slightly higher costs
- Improving your score even 20–40 points can result in substantial savings
This is why reviewing your credit early in the process is so important.
How Affinity Home Lending Helps Buyers Across All Score Ranges
We don’t just check your credit—we help you understand it.
Our team:
- Reviews your full credit profile
- Identifies opportunities to quickly raise your score
- Matches you with the best loan program for your range
- Helps you avoid unnecessary pricing hits
- Provides tools to position you for the best approval possible
Whether your score is thriving or needs a boost, you have more options than you think.