The credit score used for a mortgage will depend on the type of loan you are applying for and the lender’s specific requirements. In general, most lenders use the FICO credit score, which ranges from 300 to 850, to determine a borrower’s creditworthiness.
For a conventional mortgage loan, most lenders require a minimum credit score of 620. However, some lenders may require a higher score, particularly if you are seeking a jumbo loan or a loan with a low down payment.
For FHA loans, which are insured by the Federal Housing Administration, the minimum credit score requirement is typically 580, but as low as 500(a higher down payment will be required). However, some lenders may require a higher score, depending on the borrower’s specific circumstances.
For VA loans, which are guaranteed by the Department of Veterans Affairs, there is no official minimum credit score requirement. However, most lenders require a score of at least 620 or 640.
It’s important to note that credit scores are not the only factor lenders consider when evaluating a mortgage application. They will also look at factors such as your income, employment history, debt-to-income ratio, and other financial factors to determine your ability to repay the loan.