Your credit score is one of the biggest factors in whether you get approved for a mortgage, and it also affects the interest rate you pay. A higher score can save you thousands over the life of a loan. Here is what lenders typically look for and how to get ready.
Typical Minimum Credit Scores by Loan Type
| Loan type | Typical minimum score | Notes |
|---|---|---|
| FHA loan | 580 | 3.5% down at 580 or higher. Scores from 500 to 579 may qualify with 10% down. |
| Conventional loan | 620 | Better rates and lower mortgage insurance with higher scores. |
| VA loan | No official minimum | Many lenders look for 580 to 620. For eligible veterans and service members. |
| USDA loan | Around 640 | For eligible rural and suburban areas. Lower scores may qualify with manual review. |
These are common guidelines. Individual lenders often set their own minimums, called overlays, that can be higher.
It Is Not Just the Score
Lenders look at your full credit file, not only the number. Underwriters pay close attention to:
- Recent late payments, especially on rent or housing
- Open collections and charge-offs, which some loan programs require you to resolve
- Bankruptcies and foreclosures, which come with waiting periods
- Debt-to-income ratio, or how much of your income goes to monthly debt payments
- Credit history length and how many accounts you have
How to Get Mortgage-Ready
- Check all three credit reports. Mortgage lenders usually pull all three bureaus and use your middle score.
- Dispute errors. Inaccurate collections, late payments, and charge-offs can drag down your score. Correcting them can make a real difference.
- Pay down credit card balances. Keeping balances low compared to your limits helps your score quickly.
- Avoid new credit applications. New inquiries and accounts right before applying can lower your score.
- Keep every payment on time. Recent payment history carries a lot of weight.
How Long Does It Take to Raise Your Score?
It depends on what is on your report. Paying down card balances can show up within a month or two. Disputing inaccurate items takes at least one 30-day investigation cycle per round. Building positive history takes longer. If you are planning to buy within the next few months, start now.
Get Ready to Buy With a Plan
At Wise Consulting Enterprise, we help clients clean up their credit reports and get mortgage-ready. We also work with mortgage loan officers and realtors across the country who help our clients take the next step once their credit is ready. Final approval always depends on the lender.
If you are on a timeline, our FASTRAK program delivers results in as little as 7 to 21 days. Compare our plans or book a free 30-minute credit review.