Mortgage options expand significantly as your score improves:
Lenders often set their own "overlays," which may be 20–40 points higher than these official program minimums. Typical Min. Score Key Feature Standard loan; PMI removable at 20% equity. FHA 580 (3.5% down) More lenient credit; higher mortgage insurance. VA None (580–620 preferred) Exclusive to military; 0% down payment. USDA For rural properties; 0% down payment. Jumbo For loans exceeding local limits. Financial Impact of Your Score good credit score to buy a home
The rate difference between a 620 and a 740 score can add roughly $200 to $250 per month to a $400,000 loan. FHA 580 (3
Ensure zero late payments ; even one can drop your score by 60–110 points. Jumbo For loans exceeding local limits
Small changes in your credit score can have a massive impact on your total cost of borrowing:
The standard minimum for conventional loans ; rates will be higher.