The short answer
Most conventional loans require a 620 credit score, FHA loans go down to 580 with 3.5% down (or 500 with 10% down), and VA lenders commonly look for 580 to 620. But the minimum is not the goal: pricing improves in tiers, and moving from the 660s into the 740s can meaningfully lower your rate and mortgage insurance cost on the same loan.
- Conventional minimum
- 620
- FHA with 3.5% down
- 580
- Best pricing tier
- 740+
- Score used
- Middle of three bureaus
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Minimum scores by loan type
| Loan type | Common minimum | Notes |
|---|---|---|
| Conventional | 620 | Rate and mortgage insurance both improve with higher scores |
| FHA | 580 with 3.5% down | 500–579 possible with 10% down; lender overlays vary |
| VA | 580–620 typical | No statutory minimum; set by individual lenders |
| USDA | 640 typical | Geographic eligibility limits apply near the coast |
| Jumbo | 700–720+ | Larger loans carry stricter credit and reserve requirements |
Lender overlays are real
Program minimums are floors, not guarantees. Individual lenders add their own stricter requirements, called overlays, which is one reason two lenders can give the same borrower different answers.
Which score counts
Mortgage lenders pull all three bureaus and generally use your middle score. On a joint application, the lower borrower's middle score usually drives pricing.
02
Why the tier matters more than the minimum
Pricing moves in bands, typically in 20-point increments. Crossing from 719 to 720, or 739 to 740, can change your rate and — on conventional loans with less than 20% down — your mortgage insurance premium. On a long loan term, a fraction of a percent compounds into real money.
03
What moves a score fastest before applying
- Pay revolving balances below 30% — and ideally below 10% — of each limit
- Do not close old accounts; length of history helps you
- Dispute genuine reporting errors, which can resolve in weeks
- Ask for a goodwill adjustment on an isolated late payment
- Avoid new credit applications and financed purchases entirely
- Request rapid rescoring through your lender after paying down balances
04
What lenders review besides the score
A score summarizes the file; underwriters read the file itself. Payment history, debt-to-income ratio, employment stability, and reserves all factor in — which is why some 640 borrowers approve easily and some 700 borrowers do not. See how affordability is calculated.
- Recent late payments, collections, charge-offs, or judgments
- Time since a bankruptcy or foreclosure — waiting periods apply by program
- Debt-to-income ratio including the proposed housing payment
- Two years of documented income and employment continuity
- Verified assets for down payment, costs, and reserves
05
Buying with a lower score
A 580 to 620 score does not disqualify you. FHA financing, a larger down payment, a co-borrower, or paying down debt to strengthen your ratios can all get a file approved. Start by getting pre-approved so a lender can tell you the specific gap to close.
Once your score is in range, the search should start immediately. A quick conversation with real estate agents in Hollywood, FL will tell you what your approval realistically buys in each neighborhood today.
The same rules apply for clients across Miramar and Fort Lauderdale and the surrounding South Florida communities.