Credit Score for Mortgage
Minimum scores, lender tiers, and the cost of a lower score over 30 years.
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Your credit score is the single most controllable factor in your mortgage rate. A difference of 40 points can mean tens of thousands of dollars in interest over the life of a loan. Here's how to prepare.
Which Score Do Mortgage Lenders Use?
Mortgage lenders don't use FICO 8 (the most common model for credit cards). They pull older, mortgage-specific versions from all three bureaus:
- Equifax: FICO Beacon 5.0
- Experian: FICO v2 (Experian/Fair Isaac Risk Model v2)
- TransUnion: FICO Classic 04
For a joint application, the lender takes the middle score from each borrower's three-bureau pull, then uses the lower of the two middle scores to set pricing. If your spouse has a significantly lower score, that number drives your rate.
Score Thresholds and Rate Impact
| FICO Score | Conventional Rate Premium | Impact on $350K 30yr Loan |
|---|---|---|
| 760+ | Best available (0 adjustment) | Baseline |
| 740–759 | +0.125–0.25% | +$30–60/mo |
| 720–739 | +0.25–0.5% | +$60–120/mo |
| 700–719 | +0.5–0.75% | +$120–180/mo |
| 680–699 | +0.75–1.0% | +$180–240/mo |
| 660–679 | +1.0–1.5% | +$240–360/mo |
| 640–659 | +1.5–2.5% | +$360–600/mo |
| 620–639 | +2.5%+ | +$600+/mo |
Minimum Score Requirements by Loan Type
- Conventional (Fannie/Freddie): 620 minimum; 740+ for best pricing
- FHA loans: 580 with 3.5% down; 500–579 with 10% down
- VA loans: No official minimum (lenders typically require 580–620)
- USDA loans: 640 recommended (manual underwriting available below)
- Jumbo loans: 700–720 minimum; 740–760 preferred
How to Prepare Your Credit for a Mortgage
Start 6–12 months before you plan to apply:
- Pull your actual mortgage FICO scores (myfico.com) to know your real number
- Pay down revolving balances to below 10% of limits — this is the fastest lever
- Dispute any errors on all three bureau reports
- Don't open any new credit accounts in the 6 months before applying
- Don't close any old accounts — keeping utilization low matters
- Make every payment on time without exception
Mortgage Credit Pulls Don't Stack
Shopping multiple mortgage lenders within a 45-day window counts as a single inquiry for FICO scoring purposes. You can get quotes from 5 different lenders in a month without any additional score damage — use this to your advantage and shop aggressively for the best rate.
Use our Loan Affordability Calculator to see how much home you can afford, or read Credit Score Ranges Explained for the full picture.
Educational content only. This page is for informational purposes and does not constitute legal, tax, or personal financial advice. Results vary. Laws and bureau processes change. Consult the CFPB, FTC, and AnnualCreditReport.com for authoritative guidance. Full disclaimer
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