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The credit score you need for a mortgage depends on which type of loan you are applying for. Minimum requirements range from 500 (FHA with 10% down) to 620+ (conventional). But meeting the minimum and getting a good rate are very different things. Here are the real numbers for 2026.
Minimum Credit Score by Loan Type
| Loan Type | Minimum Score | Best Rates Start At | Down Payment |
|---|---|---|---|
| Conventional (Fannie/Freddie) | 620 | 740-760 | 3-20% |
| FHA Loan | 580 (3.5% down) or 500 (10% down) | 680+ | 3.5-10% |
| VA Loan (veterans) | No official minimum (lenders set 580-620) | 680+ | 0% |
| USDA Loan (rural) | 640 typically | 680+ | 0% |
| Jumbo Loan ($766,551+) | 700-720 minimum | 740+ | 10-20% |
How Score Affects Your Rate: Real Dollar Impact
On a $350,000 30-year mortgage at current 2026 rates, here is approximately how much more you pay based on your credit score:
| Credit Score | Approximate Rate | Monthly P&I | Extra vs 760+ |
|---|---|---|---|
| 760+ | 6.00% | $2,098 | Baseline |
| 720-759 | 6.25% | $2,155 | +$57/month |
| 700-719 | 6.50% | $2,212 | +$114/month |
| 680-699 | 6.875% | $2,298 | +$200/month |
| 660-679 | 7.25% | $2,387 | +$289/month |
| 640-659 | 7.875% | $2,538 | +$440/month |
| 620-639 | 8.50% | $2,692 | +$594/month |
The difference between a 620 and a 760 credit score on this loan is $594 per month — $7,128 per year — $213,840 over 30 years. If you are anywhere below 720, improving your score before applying for a mortgage is worth serious effort and patience.
New Mortgage Credit Scoring in 2026
Starting in 2026, Fannie Mae and Freddie Mac — who back most conventional mortgages — began accepting VantageScore 4.0 in addition to FICO scores. They also moved from FICO Score 5 to FICO Score 10T for conventional loans.
What this means for you: FICO 10T incorporates trended data (your score trajectory over 24 months, not just a snapshot). A borrower whose score has been rising consistently may score higher under 10T than under older models. VantageScore 4.0 incorporates rental payment history and other non-traditional data, which can benefit younger borrowers with thin traditional credit files.
Full details in our guide: New Mortgage Credit Score Models 2026.
Should You Wait to Buy a House Until Your Score Improves?
The math question: is the monthly savings from a higher score worth the cost of waiting (continued rent payments, potential home price appreciation you miss)?
If you are at 680 and can reach 720 in 6-12 months, the $200/month savings over 30 years ($72,000 total) almost certainly exceeds 6-12 months of rent in most markets. Waiting makes financial sense.
If you are at 720 and trying to reach 760 for an additional $57/month savings — the improvement is real but smaller. Whether waiting is worth it depends on your market and rent situation.
If you are at 620 and it would take 2-3 years to reach 720, consider an FHA loan now if home prices are rising faster than the rate savings justify waiting.
Sources: Fannie Mae credit score requirements; FHA mortgage minimum credit score guidelines; myFICO loan savings calculator. Rates are estimates for illustrative purposes — actual rates vary. This article is for informational purposes only.
