Credit requirements by loan program
- FHA loans: 580+ qualifies you for 3.5% down. Scores from 500–579 may qualify with 10% down.
- Conventional loans: typically 620+, with the best rates reserved for 740+.
- VA loans (veterans): no official minimum, but most lenders want 580–620.
- USDA loans (rural areas): usually 640+ for streamlined approval.
Why your score matters beyond approval
A higher score does not just get you approved — it gets you a lower interest rate. On a $300,000 mortgage, the difference between a 620 and a 740 score can cost over $100,000 in extra interest across 30 years. Six months of credit repair before applying is one of the best financial investments a first-time buyer can make.
Your pre-mortgage checklist
- Pull all three bureau reports and dispute every error — collections that are not yours, wrong balances, duplicate accounts, and outdated negatives.
- Pay revolving balances below 10% of their limits before the lender pulls your credit.
- Do not open new accounts or finance furniture in the 6–12 months before applying.
- Avoid new hard inquiries — rate-shop within a 14-day window so they count as one.
- Keep every payment on time; recent late payments weigh the heaviest.
Start 6–12 months before you want to buy. The Credit Rush disputes inaccuracies with all three bureaus so your file is as strong as possible when your lender pulls it.