Last reviewed: 16 October 2026
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What credit score do you need for a mortgage?
The short answer: It depends on the loan program. For an FHA loan, a minimum decision credit score of 580 or higher is eligible for maximum financing, 500 to 579 is limited to a maximum loan-to-value ratio of 90%, and below 500 is not eligible.[1] For a Fannie Mae conventional loan that is manually underwritten, the minimum is 620 for fixed-rate loans and 640 for adjustable-rate mortgages (ARMs). Fannie Mae says a minimum is not required for loans run through its Desktop Underwriter (DU) system, which assesses creditworthiness using other risk factors.[2] Ask each lender what it requires for the loan you want.
FHA loans: 500 and 580
HUD's rules use a "minimum decision credit score" (MDCS):[1]
| If the MDCS is | Then the FHA transaction is |
|---|---|
| 580 or above | eligible for maximum financing |
| 500 to 579 | limited to a maximum loan-to-value ratio of 90% |
| below 500 | not eligible for FHA-insured financing |
A 90% loan-to-value limit means the loan can be at most 90% of the home's value, so you'd bring the rest. HUD's Mortgagee Letter 2026-11 adds newer credit score models (FICO 10T and VantageScore 4.0) alongside Classic FICO for case numbers assigned on or after January 1, 2027, and says the existing minimum credit score thresholds remain unchanged.[1]
Fannie Mae conventional loans: 620 and 640
Fannie Mae's Selling Guide sets these minimums:[2]
- Manually underwritten loans: 620 for fixed-rate loans and 640 for ARMs.
- Desktop Underwriter loans: a minimum credit score is not required. DU assesses creditworthiness using the risk factors in the Selling Guide.
- Loans insured or guaranteed by a federal agency (HUD, FHA, VA and RD) that Fannie Mae buys: a minimum representative credit score of 620.
Which score counts
For FHA, the MDCS is the median score when three are reported, the lower score when two differ, and the only score when one is reported.[1] For Fannie Mae, a loan with one borrower uses the representative credit score, and a loan with more than one borrower uses the average median credit score.[2]
Why your score still matters above the minimum
Clearing a minimum doesn't mean you'll get the same price as everyone else. In the CFPB's example ($400,000 home, 10% down, 30-year fixed, data from April 1, 2025), offers ranged from 6.125% to 8.875% at a 625 credit score and from 5.875% to 8.125% at a 700 score. The CFPB says a higher score generally means lower interest rates and more lenders to choose from.[3]
What to do next
1. Ask each lender which program you'd qualify for and what score it requires. 2. Get Loan Estimates for the same kind of loan from several lenders and compare them.[4] See how to read your Loan Estimate. 3. Check the lender and loan officer on NMLS Consumer Access before you apply. See how to verify a loan originator.
FAQ
Can I get an FHA loan with a 500 credit score?
FHA rules allow it: a minimum decision credit score from 500 to 579 is limited to a maximum loan-to-value ratio of 90%. Below 500, the loan is not eligible for FHA insurance.
Is 620 the minimum for a conventional loan?
For Fannie Mae loans that are manually underwritten, the minimum is 620 for fixed-rate loans and 640 for ARMs. Fannie Mae says a minimum score is not required for loans run through its Desktop Underwriter system.
Which score does the lender use if I have three?
For FHA, the median when three scores are reported and the lower when two are reported. With more than one borrower, Fannie Mae uses an average median credit score.
Does a higher score get me a lower rate?
Generally, yes. The CFPB says applying with a higher credit score generally means you are offered lower interest rates and have more lenders to choose from.
References
- [1] HUD, Mortgagee Letter 2026-11, Updated Minimum Decision Credit Score Methodology for the Implementation of Alternative Credit Scores (October 8, 2026). https://www.hud.gov/sites/default/files/hudclips/documents/2026-11hsgml.pdf
- [2] Fannie Mae Selling Guide, B3-5.1-01 General Requirements for Credit Scores (04/22/2026). https://selling-guide.fanniemae.com/sel/b3-5.1-01/general-requirements-credit-scores
- [3] CFPB, Explore interest rates (page last modified Feb. 17, 2026). https://www.consumerfinance.gov/owning-a-home/explore-rates/
- [4] CFPB, Loan Estimate explainer (page last modified Oct. 29, 2025). https://www.consumerfinance.gov/owning-a-home/loan-estimate/