Educational Guide
Credit Scores & Your Mortgage
Your credit score is one of the biggest factors in the interest rate you're offered. Understanding it puts you in control.
What score do you need?
General starting points (lenders vary):
- Conventional: typically 620+, best pricing at ~740+.
- FHA: 580+ for 3.5% down (500–579 may need 10% down).
- VA: no VA-set minimum, but lenders often want ~600–620+.
What moves your score
Payment history and credit utilization (how much of your limits you use) are the heaviest factors. Keeping balances low and never missing payments are the two highest-impact habits.
How to improve before buying
Pay every bill on time, pay down revolving balances, avoid opening new accounts right before applying, and check your reports for errors at AnnualCreditReport.com.
Remember: HomeWise is an educational resource, not a lender. Always confirm current figures and terms with a licensed mortgage professional.
Keep Learning
Related Guides
Get a Free Booklet
Pick a topic — each opens a quick page where your PDF downloads free.
- VA Loan Booklet Zero-down benefits, the funding fee, and eligibility — explained.
- FHA Loan Booklet 3.5% down, credit flexibility, and how mortgage insurance works.
- Conventional Loan Booklet Low-down options, PMI, and how to get the best pricing.
- Refinancing Booklet Rate-and-term vs. cash-out, and finding your break-even point.
- First-Time Buyer Booklet A step-by-step roadmap from budgeting to closing day.
- Jumbo Loan Booklet High-balance loans: requirements, rates, and when they make sense.
- DSCR Investor Loan Booklet Qualify on rental income, not personal W-2s — built for investors.
- Reverse Mortgage Booklet How HECMs work, eligibility, and what homeowners 62+ should know.
- HELOC & Home Equity Booklet Compare HELOCs and home equity loans: structure, rates, and use cases.
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