A person’s credit score has a significant impact on the financing they may receive for a home. The credit score needed to buy a house depends upon many variables like loan purpose, loan type, and down payment amount. The potential home buyer also needs to consider the mortgage rate and their credit score. Here are some of the required credit scores for several mortgage types in the US. 

Conventional Loan

You can get a conventional loan as long as you have a credit score of 620. So, if you have a 620 credit score and plan to give a 10% down payment, you will pay 1.1% of Private Mortgage Insurance (PMI). 

In this case, if you have a credit score in the 500s, your best chance to get a mortgage is from the Federal Housing Administration (FHA). You will be required to pay a 10% down payment. 

Moreover, lenders can impose their credit minimums for this type of loan. You’ll likely have a combination of collection accounts, liens, and judgments. Keep in mind that most liens need to be paid before closing. 

VA Loan

A VA loan is a mortgage guaranteed by the Department of Veterans Affairs. It doesn’t really have a set minimum credit score, but the main qualification is that you need to be a veteran, an active-duty member of the military, or an eligible spouse. 

With that, VA lenders can set their minimum credit scores, which will vary. 


Similar to VA loans, a USDA loan guaranteed by the U.S. Department of Agriculture also doesn’t have a set minimum credit score. Lenders can also set their own minimums. However, if your score is over 640, you can be eligible for streamlined credit processing on this type of loan. 

Jumbo Loan

Jumbo loans allow you to get a mortgage bigger than the conforming loan limit. With that, most lenders require a minimum credit score of 700 to 720. This is because lending that amount of money is riskier, so lenders ensure that the home buyers have solid finances and a strong credit score. 

If you have a credit score of 740 or higher, you can get the best mortgage rates. 

What is Your Credit Score Isn’t High Enough to Get a Mortgage?

If your credit score is below the minimum score, there may be a chance to boost it before the application process is completed. Here are a few things you can do:

  • Pay off collection accounts and other negative accounts
  • Apply for new credit and use half of the total credit available

If you don’t want to apply for new credit, you can simply pay your outstanding bills.

If your score is too low and you don’t want to go through the process above, there are other financing options for you to consider. 

The good thing about getting a mortgage is that it’s possible to buy a home even with a credit score in the mid 500s. That’s because some lenders may offer you a mortgage with a high financing fee. Therefore, you can afford the monthly payments of your home.

How’s Your Credit Score?

A good credit score can be your ticket to get a home loan with good rates. Because of this, you need to know where you stand in terms of credit score. If you want to buy a home in the current market, it’s vital to understand the potential impact of your credit score on your mortgage loan options.

If your credit score is less than what’s needed, you can take steps to boost it before the home loan process is complete.

Let us help you get the best home mortgage in Oklahoma and Florida. Cross Timbers Mortgage helps customers find the right mortgage for their specific financial goals. Contact us!