Which Loan Programs Fit My Credit Score?

FHA guidelines allow the 3.5% minimum down payment at a 580 score or higher.

Down payment: 3.5% minimum

• •Home must be your primary residence.
• •FHA mortgage insurance is required: an upfront premium plus an annual premium paid monthly.
• •The property must meet FHA appraisal and minimum property standards.
• •Lenders may set their own higher score requirements (overlays) above FHA's minimum.

With a score of 500–579, FHA guidelines require at least 10% down. Below 500, FHA financing is not available.

Down payment: 10% minimum

• •Home must be your primary residence.
• •FHA mortgage insurance is required: upfront plus annual premium.
• •Many lenders do not originate loans in the 500–579 range even though FHA allows it.

620 is the minimum representative credit score for most conventional loans sold to Fannie Mae or Freddie Mac.

Down payment: 3% minimum on HomeReady and Home Possible; 5% is common otherwise

• •Private mortgage insurance (PMI) is required when you put down less than 20%, and can be cancelled later as equity builds.
• •HomeReady and Home Possible have household income limits; standard conventional loans do not.
• •Pricing improves as your score rises — the same loan costs less at a higher score.

VA does not set a minimum credit score. Each lender sets its own, so the score you need comes from the lender, not the VA.

Down payment: $0 down in most cases

• •You must be an eligible veteran, active-duty service member, National Guard/Reserve member, or surviving spouse, with a Certificate of Eligibility.
• •The home must be your primary residence.
• •No monthly mortgage insurance; a one-time VA funding fee applies unless you are exempt.
• •The property must meet VA minimum property requirements and be appraised by a VA appraiser.

USDA sets no minimum score, but applicants with a 640 or higher get a streamlined credit review through the Guaranteed Underwriting System; under 640 the file is manually underwritten.

Down payment: $0 down

• •The property must be in a USDA-eligible rural area — check the address on USDA's eligibility map.
• •Household income must fall under the USDA limit for your county and household size.
• •The home must be your primary residence.
• •An upfront guarantee fee and an annual fee apply.

MSHDA requires a minimum 640 credit score (660 for multiple-section manufactured homes).

Down payment: Up to $10,000 in down payment assistance, as a zero-interest second loan

• •You must apply through a MSHDA-participating lender — not through MSHDA directly.
• •Household income limits and a sales-price limit apply.
• •A homebuyer education course is required, and you keep the certificate.
• •The assistance is repaid when you sell, refinance, or pay off the first mortgage.