credit score for mortgage approval
The minimum credit score required for different mortgage types — FHA loans require 580, conventional loans typically 620-640.
Example
“Her 598 credit score disqualified her for conventional loans but the FHA required only 580.”
Memory Tip
580 FHA, 620 CONVENTIONAL — know the thresholds. Each point above saves money.
Why It Matters
Your credit score directly determines whether you can qualify for a mortgage and what interest rate you will receive. A higher credit score can save you thousands of dollars over the life of a loan through lower interest rates, making it one of the most important numbers in your financial life.
Common Misconception
Many people believe that having any credit score above 580 means they will easily get approved for a mortgage. In reality, meeting the minimum requirement does not guarantee approval, as lenders also evaluate debt-to-income ratio, employment history, and savings for a down payment.
In Practice
A borrower with a 620 credit score might qualify for a conventional mortgage at 7 percent interest on a 300,000 dollar home loan, while a borrower with a 750 score could get the same loan at 6 percent interest, saving approximately 200 dollars per month or 72,000 dollars over 30 years.
Etymology
Modern mortgage lending reality — credit score as the primary mortgage qualification hurdle.
Common Misspellings
Check your credit score free — no impact
Related Terms
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