What credit score do I need for a conventional loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The minimum for a conventional loan is 620, but pricing improves sharply as your score rises. At 740 and above you get the best rates and the lowest PMI.
Between 620 and 700 you'll still qualify, just with somewhat higher PMI and rate. If you're close to a tier break, we'll tell you whether a small score bump is worth the wait before locking.
The 620 baseline
Most conventional loans require a credit score of at least 620. That is the entry point, but the best rates go to scores of 740 and above. Between those numbers, your rate improves as your score climbs.
Conventional loans are credit-sensitive, so your score affects both your approval and your monthly cost more than it does on an FHA loan.
Score versus mortgage insurance
With less than 20% down, your score also sets your private mortgage insurance cost. A higher score means cheaper insurance, so raising your score pays off twice.
If your score is near 620, a little cleanup can save real money. Reach out and we will tell you where you stand and how to strengthen it.