Jose Diaz - Loan Officer
Minimum Credit Score for Home Loans

What is the Minimum Credit Score for Home Loans? Are you looking to buy your first home and you think you don’t have the credit ready yet? The credit history is very important when you are applying for a home mortgage loan, each program has its minimum credit score defined. In this post I will be talking about the minimum Credit Score you need for to qualify for each of the different mortgage loans.

My first reccomendation for homebuyers is to improve their credit score as much as possible before applying for a home loan, this will allow you to have the best interest rates, which it translates into lower monthly payments.

Credit scores range is between 300 and 850, a credit score equal to or greater than 740+, it is considered an excellent credit in the mortgage market. However, the minimum credit score requirements vary depending on the type of loan.

Primary Residence

FHA Loans

Minimum credit score required to enter with the lowest downpayment of 3.5% is 620. Only this program allows approval with scores greater than 580 entering with a minimum downpayment of 10%.

Conventional Loans

Minimum credit score required is 620, from my experience in recent months, Conventional loans do not approve clients with less than 640 but enter with a high downpayment. The recommended minimum credit score for Conventional loans is 680 in order to obtain a better interest rate. If the client is below 680, I personally recommend applying to FHA, which is a much more flexible program with better interest rates.

VA Loans

Minimum credit score required is 580.

Jumbo Loans

Minimum credit score required is 680, to enter with the lowest 15% downpayment is required 740+.


Minimum credit score required is 620 (*update, I just participate in a USDA webinar 06/29/2022, and no minimum score apply, in case lower score and a minimum of 3 credit liabilities with at least 12-months credit history will be analyzed).

12-Bank Statement Loans

Minimum credit score required is 680.

Investment Residence

Hard Money

There is no general rule here, each private bank has its own guidelines, usually the minimum credit score required is 600.

Commercial Loans

Minimum credit score required is 650.

Did you know?

I can help you raise your credit score in just 3 days, that’s right, if you follow my advice at the time of pre-approval, we have the necessary tools to simulate credit, and if necessary we can get in direct contact with the credit bureaus and request a “re-scoring” in just 5-10 business days, but no more than 30 days should pass after the initial credit was extracted. Having a higher credit score will give you the opportunity to get a lower interest rate which translates into a lower monthly payment.

If you have bad credit, it doesn’t matter, contact us today for advice.

3 Tips to Improve your Credit Score in 30 days:
  1. Continue paying your monthly payments without delays, we must always maintain 100% in the payment history.
  2. Lowering your balances to less than 10% of your credit lines.
  3. Adding you as an authorized user to another card with a long history and in good standing.

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If you are thinking of buying a property in Florida, send me a message or click here to contact me and I will be ready to provide you with a totally free Financial Advice.

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