Credit Scores and Mortgages: What Score Do You Really Need?

You don’t need perfect credit to qualify for a mortgage.The credit score you need depends on the loan program, your overall financial picture, and the lender’s requirements. Some FHA borrowers may qualify with scores starting at 500 under FHA guidelines, while conventional loan requirements vary by underwriting method. A higher score, however, can still help you qualify for more favorable loan terms and potentially lower borrowing costs.

Your Credit Score Is Only Part of the Picture

It’s easy to assume that getting a mortgage comes down to one number. In reality, lenders look at several pieces of your financial situation.

Along with credit history, lenders may consider your income, employment, existing debts, down payment, cash reserves, and the type of property you’re purchasing.

That means a less-than-perfect credit score doesn’t automatically mean homeownership is out of reach.

What Credit Score Do You Need for an FHA Loan?

FHA loans can provide options for buyers with lower credit scores.

Under FHA guidelines, borrowers with acredit score of 580 or higher may qualify for a down payment as low as 3.5%. Borrowers with scores from500 to 579 may potentially qualify with at least 10% down. Individual lenders can set additional requirements beyond FHA's minimum guidelines.

This is one reason it can be helpful to talk with a mortgage professional before assuming your credit score is too low to buy a home.

What About Conventional Mortgages?

Conventional lending is more nuanced than a single minimum score.

As of 2026, Fannie Mae's Desktop Underwriter (DU) no longer requires a minimum third-party credit score for loan casefiles submitted through DU. Instead, the system evaluates multiple risk factors when determining eligibility. Certain manually underwritten Fannie Mae fixed-rate loans, however, generally have a 620 minimum credit score.

Your credit score can still matter formortgage pricing, even when it isn't being used as a simple pass-or-fail requirement.

Can a Higher Credit Score Help?

Yes. Meeting the minimum requirements and getting the most favorable financing are two different things.

A stronger credit profile may help you access better rates or loan terms, depending on the mortgage program and market conditions. Even a relatively small improvement could make a difference over the life of a mortgage.

Before applying, consider reviewing your credit reports, making payments on time, avoiding unnecessary new debt, and keeping credit card balances manageable.

Don't Assume You Have to Wait

One of the biggest mistakes prospective buyers can make is deciding on their own that their credit isn't good enough.

If you're thinking about buying a home inCamarillo, Ventura County, or the surrounding area, start by finding out where you actually stand. You may already have financing options, or there may be specific steps you can take to strengthen your application.

Loan Production Office in Camarillo can help you explore available mortgage options, understand how your credit affects your application, and determine what steps make sense before you begin shopping for a home.