Your credit score is one of the biggest levers on your mortgage rate — and therefore on the total cost of your home. A 100-point difference can mean paying tens of thousands more over the life of the loan.

Minimum scores by loan type

Loan typeMin. scoreDown paymentNotes
Conventional6203–20%Best rates at 740+
FHA5803.5%500–579 with 10% down
VANo minimum*0%*Lenders typically want 580+
USDA6400%Rural areas only
Jumbo700–72010–20%Varies by lender

How your score affects your rate

Credit score tiers correspond directly to interest rate tiers. On a $350,000 loan, the difference between a 650 and 750 score can be 0.5–1.0% in rate — which translates to:

Credit scoreEst. rate (30yr)Monthly P&ITotal interest
760–8506.25%$2,155$426,000
700–7596.50%$2,212$447,000
660–6996.90%$2,307$480,000
620–6597.40%$2,424$522,000

Estimates on $350k loan, 20% down, 30-year fixed. Rates illustrative.

At 620 vs 760, you'd pay ~$96,000 more in interest over the life of the loan. That's why credit improvement before applying is almost always worth it.

What makes up your credit score (FICO)

  • Payment history (35%) — on-time payments are the biggest factor
  • Amounts owed (30%) — credit utilization; keep cards below 30% of limit
  • Length of credit history (15%) — older accounts help
  • New credit (10%) — hard inquiries and new accounts
  • Credit mix (10%) — variety of account types

How to improve your score before applying

The fastest wins — in order of impact:

  1. Pay down credit card balances. Utilization below 10% is ideal for a mortgage application. This can raise your score 20–50 points in one billing cycle.
  2. Dispute errors on your credit report. Get free reports at annualcreditreport.com. One in five reports has an error. Disputing a collection that isn't yours can add 50+ points.
  3. Don't open new accounts. Each hard inquiry costs 5–10 points. Avoid new credit cards, car loans, or financing for 6–12 months before applying.
  4. Become an authorized user. Being added to a family member's old, well-managed card can boost your score quickly.
  5. Set up autopay. One missed payment can drop your score 80–100 points. Automate minimums on every account.

Timeline: how long does improvement take?

  • 1–2 months: Pay down utilization, dispute errors
  • 3–6 months: Consistent on-time payments show up meaningfully
  • 12+ months: Recovering from a missed payment or collection
  • 24+ months: Recovering from a foreclosure or bankruptcy
Pro tip: Apply for your mortgage within a 14-45 day window. Multiple mortgage inquiries in this window count as a single hard pull under FICO's rate-shopping rules — so shop multiple lenders without hurting your score.

Bottom line

  • 620 is the conventional floor; 740+ gets you the best rates
  • Pay down utilization for the fastest score boost
  • Don't open new credit in the year before applying
  • Shop multiple lenders within 45 days — it counts as one inquiry