620 Credit Score Conventional Loan
620 is the conventional minimum. You can put just 3% down, but you are at the bottom of the pricing ladder.
A 620 credit score is exactly the conventional loan minimum. You can put as little as 3% down and, unlike FHA, cancel mortgage insurance once you hit 20% equity. The catch is that 620 is the worst conventional pricing tier, so your rate and PMI are higher than they will be at 640, 660, or 700.
The Bottom of the Ladder
Conventional rewards higher scores steeply, and 620 sits at the bottom. Your PMI in particular will be noticeably higher than a buyer just one tier up. That is the trade-off for qualifying at the minimum.
For some 620 buyers, FHA is actually cheaper month to month despite conventional's long-term advantage. And if you can nudge the score to 640, the PMI drops with no other change. We price both and check how close the next tier is.
| Factor | Conventional at a 620 Score |
|---|---|
| Down Payment | 3% (first-time buyers) |
| PMI | Highest conventional tier |
| PMI Cancels | Yes, at 20% equity |
| Compare | FHA may be cheaper now |
What a 620 score changes for Conventional Loan
Credit scores work in bands rather than single points, so the score either side of yours is what decides whether the terms move. Here is what the nearest bands do to a conventional loan in Florida, and what the same 620 reaches on other programs today.
Drop to 600: Almost — 20 points from eligible. See 600 with Conventional Loan
Reach 640: Better pricing. See 640 with Conventional Loan
If you are close to the band above, it is usually worth asking a lender what it would take to get there before you lock anything in. Paying down a revolving balance is the fastest lever most borrowers have, and it can move a score within one billing cycle.
One thing worth knowing before you read too much into a number: lenders do not use the score you see on a free credit app. They pull all three bureaus and work from the middle score, and on a joint application they use the lower borrower’s middle score. Ask which score a lender is working from before you assume you sit in a particular band.
What else a 620 score reaches
FHA Loan at 620: Works — but compare conventional.
VA Loan at 620: Comfortable approval.
USDA Loan at 620: Not yet — USDA wants 640.
Jumbo Loan at 620: Not yet — jumbo wants ~700.
Refinance at 620: Conventional refinance opens.
620 Credit Score Conventional Loan — FAQ
Yes, 620 is the conventional minimum, and you can put as little as 3% down. The trade-off is that 620 is the worst pricing tier, so your rate and PMI are higher than at 640 or above. FHA is sometimes cheaper at this score.
Often worth it. PMI and rate improve at 640 and again at 660. If you can reach the next tier with a small balance paydown, it lowers your monthly cost with no other change. We tell you how close you are.
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).
A Conventional Loan With a 620 Score?
Get matched to the right Florida loan for your score · Licensed FL mortgage broker NMLS# 1859012
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.