Credit Score Basics for Mortgages
Credit scores can affect mortgage eligibility, pricing, documentation, and product fit, but score alone does not determine the full approval decision.
Before you decide
- Credit score is one part of underwriting.
- Credit history, debts, income, assets, and property also matter.
- Different programs and lenders may set different minimums or overlays.
What Credit Score Does
Credit score can influence eligibility, pricing, mortgage insurance, and documentation. It is not the only part of the decision.
Why Different Loan Types Matter
FHA, conventional, VA, USDA, jumbo, and portfolio programs can handle credit differently. Some lenders may also have stricter rules than the minimum program rules.
What You Can Do Early
Borrowers should review credit reports early, avoid new debt surprises, and ask how the lender treats credit events or disputed accounts.
Keep reading
A purchase loan helps a borrower buy a home and is evaluated through income, assets, credit, property, occupancy, down payment, and program-specific rules.
FHA LoansFHA loans are insured by the Federal Housing Administration and are commonly reviewed for borrowers who need flexible credit, down payment, or qualification rules.
Conventional LoansA conventional loan is a common home loan that is not insured by FHA, VA, or USDA. Lenders review credit, income, assets, the property, and how you plan to use the home.
Debt-to-Income RatioDebt-to-income ratio compares the monthly debts a lender counts with the income a lender can document. It is one part of mortgage approval.
Where this information comes from
Fannie Mae - agency
https://selling-guide.fanniemae.com/U.S. Department of Housing and Urban Development - official
https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1NMLS - official
https://www.nmlsconsumeraccess.org/Reviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.