In this guide
There is no single minimum score for a mortgage. It depends on the loan program and how the loan is underwritten. FHA allows a score as low as 500 with 10% down, or 580 with 3.5% down (FHA credit score rule, 75 FR 54020). Since November 2025, Fannie Mae no longer requires any minimum score on loans run through its Desktop Underwriter system (Fannie Mae Selling Guide B3-5.1-01). Lenders still set their own floors, so the number you actually need is the one your lender quotes.
Minimums by loan program, October 2026
| Program | What the official rule says | Source |
|---|---|---|
| FHA | 580 or higher qualifies for maximum financing (96.5% loan-to-value on a purchase, so 3.5% down). 500 to 579 is limited to 90% loan-to-value, so 10% down. Below 500 is not eligible. The "decision score" is the middle of three scores, or the lower of two. | 75 FR 54020 (HUD, September 2010) |
| VA | The VA sets no minimum score. Lenders follow VA standards and may add their own, including a minimum score. | VA home loan types |
| Conventional, Fannie Mae, run through Desktop Underwriter | "A minimum credit score is not required for DU loan casefiles." DU weighs other risk factors instead. Applies to casefiles created on or after November 16, 2025. | Selling Guide B3-5.1-01 |
| Conventional, Fannie Mae, manually underwritten | 620 for fixed-rate loans, 640 for adjustable-rate loans. | Selling Guide B3-5.1-01 |
| Conventional, Freddie Mac | Product pages state a minimum Indicator Score of 620 unless the Guide says otherwise, subject to the thresholds in Guide Exhibit 25A. | Freddie Mac fixed-rate mortgages |
USDA guaranteed loans have no fixed minimum in USDA's own rules. Its handbook says the Guaranteed Underwriting System "will determine the acceptable credit score" for each file, and lets lenders add their own criteria (USDA HB-1-3555, Chapter 10). If a lender quotes 640, that is the lender's rule, not USDA's.
Program minimum is not the lender's minimum. The VA says outright that lenders may require a "high enough credit score". Fannie Mae removing its DU floor does not oblige a lender to approve a 540 score. Lenders can add their own limits to any program, and many do.
Which score the lender uses is changing
For decades Fannie Mae and Freddie Mac required "Classic FICO" scores. The Federal Housing Finance Agency (FHFA) announced on July 8, 2025 that lenders could use either Classic FICO or VantageScore 4.0. On September 9, 2026, FHFA opened VantageScore 4.0 to all approved lenders, removing the need for prior written approval (FHFA credit score page). Current status from that page:
- Classic FICO is still approved. FHFA says it is expected to retire later, with no date announced.
- Tri-merge reporting (a score from each of the three bureaus) is still required. The optional bi-merge option has no date; FHFA moved it to "a date to be determined" in January 2025.
- FICO 10T is validated but "not currently eligible for delivery".
- On September 30, 2026, Fannie Mae and Freddie Mac aligned their upfront fees across Classic FICO and VantageScore 4.0.
The score in your banking app may be a different model from the one your lender pulls. Expect a gap. See what moves your FICO score for how the models weigh your file.
What a rate difference costs: a worked example
Score affects the rate you are quoted, and the rate compounds over 30 years. Freddie Mac's survey average for a 30-year fixed loan was 7.28% on October 1, 2026 (Freddie Mac Primary Mortgage Market Survey). The table applies that rate and two higher rates that I chose as illustrations. They are not quotes for any score band. Loan: $300,000, 30 years, fixed, principal and interest only.
| Rate (illustrative except the first) | Monthly payment | Total interest over 30 years |
|---|---|---|
| 7.28% (Freddie Mac survey average) | $2,053 | $438,949 |
| 7.78% | $2,155 | $475,965 |
| 8.28% | $2,260 | $513,647 |
One percentage point is $207 a month and $74,698 in interest over the life of the loan. Half a point is $103 a month and $37,016. Run your own loan through the loan calculator. Property taxes, insurance and mortgage insurance come on top of these payments.
The score is one of several gates
- Debt-to-income ratio. Often the limit that binds first. See debt-to-income ratio explained.
- Down payment. FHA ties it directly to score: 3.5% at 580 and up, 10% from 500 to 579.
- Documented income, reserves and the property itself. DU now weighs these where it once checked a score first.
Joint applications and the middle score
FHA uses the middle of three scores for each borrower, or the lower of two when only two exist. For a couple, HUD's 2010 letter says the decision score comes from the lowest-scoring applicant. Ask any lender how it will treat a pair before assuming a joint application helps.
What to do before you apply
- Pull all three reports and fix errors. Start at the official free source.
- Get reported balances down. Use the statement close optimizer and read the utilization guide.
- Hold off on new accounts. A lender looking at your file will see them. Do your rate shopping in one short stretch; see hard vs. soft inquiries.
- Change nothing between approval and closing. Lenders can re-check your file before closing.
Frequently asked questions
What is the lowest credit score for a mortgage?
FHA allows a minimum decision score of 500 with 10% down, and 580 for 3.5% down. Below 500 is not FHA eligible.
Does Fannie Mae still require a 620 score?
Not for loans underwritten through Desktop Underwriter with casefiles created on or after November 16, 2025. Manually underwritten loans still need 620 for fixed rates and 640 for adjustable rates.
Is there a minimum credit score for a VA loan?
The VA sets none, but private lenders making VA-backed loans may require one.
Can lenders use VantageScore instead of FICO now?
For loans sold to Fannie Mae and Freddie Mac, yes. VantageScore 4.0 is open to all approved lenders as of September 9, 2026, and Classic FICO is still accepted.
Why is my lender's score different from my app's?
They are often different scoring models and pull data from different bureaus on different days. Mortgage lenders pull from all three bureaus.
Can I be denied with a good score?
Yes. A high debt-to-income ratio, unverifiable income or a problem with the property can each stop an approval.
Does a larger down payment help a low score?
On FHA it changes the rule itself: a score of 500 to 579 requires at least 10% down. Elsewhere it can improve pricing and approval odds, but it does not remove a lender's score requirement.
Sources
- Federal Housing Administration Risk Management Initiatives: New Loan-to-Value and Credit Score Requirements (75 FR 54020), U.S. Department of Housing and Urban Development, Federal Register. Checked October 2026.
- HB-1-3555, Chapter 10: Credit Analysis, USDA Rural Development. Checked October 2026.
- VA home loan types, U.S. Department of Veterans Affairs. Checked October 2026.
- B3-5.1-01, General Requirements for Credit Scores, Fannie Mae Selling Guide. Checked October 2026.
- Fixed-Rate Mortgages, Freddie Mac Single-Family. Checked October 2026.
- Credit Scores, Federal Housing Finance Agency. Checked October 2026.
- Primary Mortgage Market Survey, Freddie Mac. Checked October 2026.
Written by
Teja PagidimarriTeja Pagidimarri built 43dots to answer money questions with numbers you can check. He is a software developer, not a licensed financial advisor, so every guide here is built the way an engineer would: figures pulled from the primary source, math shown in the open, and the calculators built from the actual published formulas.
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