Minimum Credit Score for FHA, VA, USDA and Conventional Loans (2026)

Credit requirements at a glance

This table describes starting rules. It does not predict approval, rate or mortgage insurance price.

FHA: 580 for maximum financing and 500–579 with more equity

HUD's FHA framework permits maximum financing for borrowers with a minimum decision credit score of 580 or above. Borrowers with scores from 500 through 579 are generally limited to 90% loan-to-value, which corresponds to at least 10% equity or down payment in a straightforward purchase example. Scores below 500 are not eligible for FHA-insured financing under that framework.

Those figures describe FHA's program boundary. An FHA-approved lender can set a higher minimum, require compensating factors, restrict manual underwriting or decline a file for reasons unrelated to the score.

What a 580 score does and does not mean

A 580 score can satisfy FHA's score threshold for maximum financing. It does not establish that the borrower:

• Meets the lender's minimum score;

• Has an acceptable debt-to-income ratio;

• Has sufficient documented income and funds;

• Meets payment-history and derogatory-credit requirements;

• Has an eligible property;

• Will receive a particular rate.

The score opens a possible program path. The complete underwriting file determines whether that path remains available.

VA: no universal VA minimum score

VA's home-loan guaranty does not establish one minimum credit score for every VA-backed purchase loan. The approved lender reviews the borrower's credit history, income, debts, residual income and other risk factors. The lender may then apply its own minimum score.

This distinction explains why one lender may advertise a VA minimum while another publishes a different number. Those figures can describe lender policy rather than a VA-wide requirement.

An eligible borrower should ask:

• What minimum score does this lender use for the requested VA transaction?

• Does the lender permit manual underwriting?

• What recent payment history or derogatory-credit rules apply?

• What residual-income requirement applies to the household and region?

• Does the borrower have a valid Certificate of Eligibility?

USDA: separate the program from the lender's score

USDA's Single Family Housing Guaranteed Loan Program materials state that there is no universal minimum credit score at the program level, while acknowledging that a lender or investor may require one. The underwriting route and the quality of the complete credit file still matter.

Articles often present 640 as “the USDA minimum.” That number has been widely associated with streamlined automated processing, but it should not be represented as a universal statutory or program floor. Likewise, a statement that “USDA accepts 580” is incomplete unless it identifies the lender and underwriting conditions supporting that claim.

USDA eligibility also depends on matters a score cannot answer:

• Eligible property location;

• Household income limits;

• Primary-residence requirements;

• Ability to repay;

• Credit history and underwriting result;

• Participating-lender standards.

Conventional: the 620 rule needs context

“Conventional mortgages require a 620 score” is no longer a reliable universal statement.

Fannie Mae removed the minimum third-party credit-score requirement for new Desktop Underwriter casefiles beginning in November 2025. DU applies a broader credit-risk assessment using information in the credit file and application. A third-party score is still generally delivered with the loan under the Selling Guide, but DU eligibility is not determined by a standalone 620 floor.

Manual underwriting follows a different framework. Fannie Mae's 2026 Selling Guide lists a 620 minimum for fixed-rate manually underwritten loans and 640 for manually underwritten ARMs, subject to the applicable matrix and exceptions.

Freddie Mac's Home Possible materials also explain that some qualified borrowers can obtain the product without a traditional credit score. The selected product, automated underwriting result, manual-underwriting rules, mortgage insurer and lender overlay must therefore be identified before stating a minimum.

What about Conventional 97 and HomeReady?

Conventional 97 and HomeReady can provide eligible 3% down paths, but the down payment percentage does not create an automatic credit-score approval rule.

For each application, verify:

1. Whether the loan is submitted through DU or reviewed manually;

2. Whether the transaction fits the product's occupancy, property and loan-to-value requirements;

3. Whether an income limit or education requirement applies;

4. Whether PMI is available at the requested risk profile;

5. Whether the lender uses an additional minimum score;

6. Whether the result changes with a co-borrower, debt-to-income ratio or reserve amount.

Why two lenders can give different answers

A lender overlay is a requirement that is stricter than the underlying agency or investor rule. Common overlays can address:

• Minimum credit score;

• Maximum debt-to-income ratio;

• Reserve requirements;

• Manual underwriting;

• Recent bankruptcy, foreclosure or late payments;

• Property type;

• Gift funds or assistance;

• Number of financed properties.

The existence of an overlay does not change the underlying program rule. It changes which files that particular lender is willing or able to originate.

Which mortgage score is used?

Mortgage underwriting can use score models and selection methods that differ from the score shown in a consumer banking app. When multiple borrowers apply, the score used for eligibility or pricing can also depend on the program's method for representative, median or average-median scores.

Ask the lender to identify:

• The credit-score model ordered;

• The score used for eligibility;

• The score used for pricing;

• The effect of multiple borrowers;

• Whether the application is receiving automated or manual underwriting;

• Any minimum imposed by the lender or mortgage insurer.

Credit-score questions with direct answers

Can a borrower buy with a 500 score?

FHA's published framework permits scores from 500 through 579 at no more than 90% LTV, but many lenders do not originate at that floor. Approval still requires a complete eligible file.

Does a 580 score guarantee 3.5% down FHA financing?

No. It can meet FHA's score threshold for maximum financing, while lender overlays and the rest of the application still control approval.

Is 620 the minimum for every conventional loan?

No. Current Fannie Mae DU casefiles do not use a standalone third-party-score minimum, while manual underwriting, Freddie Mac paths, mortgage insurers and lenders can apply different requirements.

Is 640 the official USDA minimum?

No universal USDA program minimum is stated in the cited USDA program material. A lender, investor or underwriting path may use a score requirement.

Does VA require 580 or 620?

VA does not establish one universal minimum. A specific lender may use 580, 620 or another threshold as its own policy.

Prepare for a program-specific review

Bring the same borrower information to each comparison:

• Income and employment documents;

• Monthly debts;

• Funds available for closing and reserves;

• Credit history details;

• Intended occupancy;

• Property type and location;

• Assistance or gift-fund plans;

• Military eligibility for VA;

• Household-income information for USDA.

Then ask each lender to identify the program, underwriting method, lender overlay, mortgage insurance treatment and estimated cash to close.