Your credit score is a major factor that lenders use to decide whether to approve you for a mortgage. This three-digit number represents your potential risk as a borrower, the likelihood you'll pay a loan back on time. Mortgage credit score requirements vary depending o🎃n the lender and type of loan. In most cases, you'll need a minimum score of 620 for a conventional loan and 500 for an FHA loan. Some government-backed loans have no specified minimum.

Understanding Credit Scores

A credit score is a way for prospective lenders to gauge the odds that you'd pay back your loan on time—or at all. Most credit scores range from 300 to 850. Your score is based on information in your 澳洲幸运5官方开奖结果体彩网:credit reports, as compiled by the 澳洲幸运5官方开奖结果体彩网:three major credit bureaus, Equifax, Experian, and TransUnion.

That information can include:

• A list of your current and past credit accounts
• How often you have applied for and opened new accounts
• Your payment history on each of your accounts
• The number of years you've had accounts open
• The percentage of your available credit that you are currently using, known as your 澳洲幸运5官方开奖结果体彩网:credit utilization ratio
• Any negative marks, such as debt going to collections, bankruptcy, or foreclosure

Lenders use different scoring models for different purposes. FICO scores, the most widely used scoring models, are often categorized as follows:

• Poor: Below 580 
• Fair: 580 to 669 
• Good: 670 to 739 
• Very good: 740 to 799 
• Exceptional: 800 and up

As a general rule, the higher your score, the more likely you are to be approved fo༺r a loan, and the lower the interest rates you may be offered. Most lenders want to see at least a fair credit score. 

Credit Score Requirements for Mortgages

The minimum credit score you'll need to get a mortgage can depend on the type of loan.

Minimum Credit Score for Conventional Mortgages

A 澳洲幸运5官方开奖结果体彩网:conventional mortgage is a loan made by a private lender and can be either conforming or non-conforming. 澳洲幸运5官方开奖结果体彩网:Conforming loans meet the requirements set by 澳洲幸运5官方开奖结果体彩网:Fannie Mae and Freddie Mac, two congressionally chartered companies that buy mortgages from lenders and often package them into 澳洲幸运5官方开奖结果体彩网:mortgage-backed securities for sale to investors. To get a conforming loan, you must generally have a credit score of at least 620.

Lenders can set their own requirements for 澳洲幸运5官方开奖结果体彩网:non-conforming loans, wh𒈔ich may include lower acceptable credit scores.

Credit Score✤ Requirements for Government-Backed Mortgages

Government-backed mortgages, such as 澳洲幸运5ꦺ官方开奖🐻结果体彩网:Federal Housing Administration (FHA) loans, often have more lenient credit requirements than conventional mortgages. FHA loans require a credit score of at least 500, along with a 澳洲幸运5官方开奖结果体彩网:down payment of at least 10%. Applicants with a score of 580 or higher are eligible for 3.5% down payments.

澳洲幸运5官方开奖结果体彩网:Veterans Affairs (VA) loans don't have a minimum credit score requirement, but the lenders who issue them may have their own requirements. 澳洲幸运5官方开奖结果体彩网:U.S. Dꦺepartment of Agriculture (USDA) loans also don't specify a minimum credit score requirement. However, borrowers may need to provide more documentation if their credit score is below 640.

Improving Your Credit Score for a Mortgage

Before applying for any kind of mortgage, it can be helpful to know your credit score. You can 澳洲幸运5官方开奖结果𝓀体彩网:obtain your credit scor✤e free of charge from many banks and credit c🍸ard companies, as well as from online sources. If you find that your score isn't up to par, there are some steps you can 🧔take:

• Review your credit reports. Determining what may be dragging down your credit score is an important step to improving it. By law, you're entitled to a free credit report at least once a year from each of the three major credit bureaus. The official website for obtaining all three is . Look over each one to see if there are any inaccuracies that could be hurting your score, such as unpaid bills that you know you paid. You have a right to dispute any errors you find, and the credit bureau is required to investigate.
• Pay all your credit bills on time. This is the single most important factor that the scoring models use in assigning you a credit score.
• Work on paying down debt. Lowering the total amount you owe can improve both your credit utilization ratio and your 澳洲幸运5官方开奖结果体彩网:debt-to-income ratio, another factor that mortgage lenders consider, as explained below.
• Hold off applying for other new credit. Applications for other loans or credit cards can trigger a 澳洲幸运5官方开奖结果体彩网:hard credit inquiry, which can temporarily lower your credit score. Plus, too many loan applications could have lenders wondering if you rely too much on credit, impairing your chances of approval. 

Other Factors Considered by Mortgage Lenders

Your credit score isn't the only important factor that mortgage lenders use when assessing your loan application. Others include:

• Income: Lenders want to know that potential borrowers will have enough money coming in to make their monthly mortgage payments. If you're applying for a joint loan with another person, the lender may consider your two incomes. Your income can affect both your eligibility for a mortgage and how large a loan a lender may be willing to offer you. Your credit reports don't include income information, so it isn't factored into your credit score.
• Employment history: In most cases, lenders will ask for your employment information, going back about two years.
• Debt-to-income ratio: Your debt-to-income (DTI) ratio is the percentage of your income that's going toward your current debt payments. You can compute your DTI by dividing your monthly debt obligations by your monthly gross income. Lenders may consider DTIs over a certain percentage to be disqualifying. According to the Consumer Financial Protection Bureau, lenders generally like to see a DTI of 36% or less (including mortgage payments), although some will accept a DTI of 43% or higher.

The Bottom Line

Minimum credit score requirements for mortgages can depend on the type of loan and a particular lender's criteria. If your credit score doesn't meet the minimum, or if it's teetering on the edge, consider taking some time to improve it before you apply.