Quick answer
There is no single minimum. Under HUD’s rules, FHA allows 3.5% down at a 580 score or higher and 10% down at 500–579, though many lenders set their own floor between 580 and 620. Most conventional lenders look for about 620. VA sets no minimum, and USDA’s automated system generally needs 640 for a streamlined approval. Your score helps decide which program fits you.
Rules on this page were checked on against HUD Handbook 4000.1 and the Fannie Mae Selling Guide. Program terms are subject to agency and lender guidelines and may change, and individual lenders can set stricter rules.
Your credit score and which loan fits
Transcript: So how important is your credit score to getting pre-approved? Your credit score is going to help you determine which loan program you fit best into. So typically someone with a 600 credit score to a 680 credit score typically fits best into a FHA loan or a VA loan or sometimes even a USDA loan. However, someone who has a credit score of 700 or higher typically can fit into a conventional loan option. So if you're looking to purchase and you want to have a conversation, then give us a call to buy with confidence and buy with Valor.
Credit score ranges are general examples. Program fit depends on your whole file and on lender guidelines.
What score does each loan program look for?
| Loan | The program’s rule | What lenders often do |
|---|---|---|
| FHA | 580+ for 3.5% down; 500–579 with 10% down | Many set their own floor between 580 and 620 |
| Conventional | Fannie Mae dropped its fixed 620 minimum for loans approved through Desktop Underwriter in late 2025 | Most look for about 620, and many still keep that floor |
| VA | VA sets no minimum score | Lender overlays vary, so one lender’s “no” isn’t the final word |
| USDA | No published minimum; its automated system generally needs 640 for a streamlined approval | Below 640, approval generally needs manual underwriting and documented extenuating circumstances |
Program terms and eligibility are subject to HUD, VA, USDA, Fannie Mae and lender guidelines and may change. Meeting a score does not by itself mean a loan will be approved.
Which credit score does a mortgage lender use?
Usually not the one on your phone. Christopher explains in a video below that lenders pull scores from all three credit bureaus and, on a typical purchase, use the middle one. The score in a credit-monitoring app is calculated somewhat differently from the score mortgage investors use, so the two often won’t match.
That matters when you are close to a cutoff. If your app shows 625, your mortgage score could land on either side of 620. A lender can tell you the actual number once your credit has been pulled.
What if your score is below 580?
You may still have a path, usually with a larger down payment. FHA’s rule allows scores from 500 to 579 with 10% down, but not every lender will do those loans. Between 580 and 620, Christopher says lenders may want to see compensating factors, such as reserves in the bank, and a reason the score is where it is.
A real example from The Hub podcast
On The Hub, Christopher described a friend whose credit fell from the 700s to about 560 after moving and missing student loan notices. They owned a home and used its equity as the down payment on the next one, which lowered the risk. One person’s situation doesn’t predict another’s. Hear it from 8:48 in the episode.
What moves your score before you apply?
- Payment history is the largest factor in a FICO score, at 35%. Missed payments and collections are hard to offset.
- Amounts owed are 30%. Scoring models look at how much of your credit limits you use, so lower card balances can help.
- New credit is 10%. The CFPB warns that applying for a credit card or car loan right before or during the mortgage process can lower your scores.
- Paying off the wrong debt can backfire. See whether to pay off debt before applying.
More from Christopher on this
Low credit doesn’t mean no options — here’s how lenders look at it
So you've got a low credit score and how can we work with that? Typically, if someone has a credit score lower than 580, there is options to be able to purchase, but you're going to need a lot larger down payment. If your credit score tends to be between a 580 to a 620, we're going to be able to use potentially an FHA loan or even a VA loan to be able to help you to purchase. But we want to see what's called compensating factors. We may want to see reserves in your bank account or we were looking for specific things as to why your score is where it's at. However, if your score is higher, then it opens up a lot more options for you when you're looking to purchase a home. So if you want to know what your options are, then give us a call. That way you can buy with confidence and buy with Valor.
Credit score ranges are general examples. Minimums and down payment requirements depend on the program and lender.
How lenders use your three credit scores
Do we look at multiple credit scores when we look at your pre-approval? The short answer is yes. We pull all three credit scores and then we base your credit decision off of the middle of the three. There are other products that may not require all the credit scores but for a typical purchase it's three scores and then use the middle. If there are multiple people on the application then it is the lower of the middle two scores. If you're looking and have questions feel free to give us a call to buy with confidence and buy with Valor.
With more than one borrower, many lenders use the lower of the middle scores. For conventional eligibility, Fannie Mae uses an average median score on loans with more than one borrower, and lenders can have their own rules.
Credit score FAQ
Can you buy a house with a 500 credit score?
Possibly, but it is hard. FHA’s rule allows scores of 500 to 579 with 10% down, and many lenders set a higher floor of their own. Program terms and eligibility are subject to HUD and lender guidelines and may change.
Do you need a 700 score for a conventional loan?
No. Most conventional lenders look for about 620. Christopher notes that borrowers at 700 or higher often fit conventional best, while many between 600 and 680 fit FHA, VA or USDA better. It depends on your whole file and the lender’s guidelines.
Why is my credit app score different from my mortgage score?
The scores in credit-monitoring apps are calculated somewhat differently from the scores mortgage investors use. Lenders also typically use the middle of three bureau scores, so a single app score may not match the number used on your loan.
Will talking to more than one lender hurt my credit?
The CFPB says you can shop around and get multiple preapprovals and official Loan Estimates. It warns separately that applying for other credit, like a credit card or car loan, right before a mortgage can lower your scores.
Where these rules come from
| Rule or figure | Source | As of |
|---|---|---|
| FHA credit score and down payment | HUD Handbook 4000.1 | Nov 5, 2026 |
| Conventional credit score rules, multiple borrowers | Fannie Mae Selling Guide B3-5.1-01; Fannie Mae Selling Guide B3-5.1-02 | Nov 5, 2026 |
| FICO score factors | myFICO, what’s in your credit score | Nov 5, 2026 |
| Credit limits and balances | CFPB, getting and keeping a good credit score | Nov 5, 2026 |
| New credit and shopping lenders | CFPB, what happens when a lender checks your credit | Nov 5, 2026 |
Related answers and guides
- Should you pay off debt before applying?
- What’s the difference between prequalification and preapproval?
- Which credit score do mortgage lenders use?
- Can you buy a house after bankruptcy?
- FHA loan requirements in Tennessee and conventional loan requirements.
- What to do after a mortgage denial.
- More answers on credit and qualifying.
- About Christopher Armantrout.
Call me at (615) 671-9178. That’s the fastest way to get a straight answer on what you’d qualify for and what your credit score means for your loan.
If it’s after hours, grab a time on my calendar. Pick a slot that works and I’ll call you then.
If your life is too chaotic for a phone call right now — I understand — start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.