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Mortgage Approval Rates by Credit Score 2026 (Illustrative Rates)

What credit score do you need for a mortgage? Approval rates, interest rates, and loan options by credit score tier. Rates shown are illustrative spreads above the October 2026 Freddie Mac average.

Mortgage Approval & Rates by Credit Score

Credit ScoreApproval RateIllustrative RatePayment on $280KAssessment
760-85098%7.28%$1,916Excellent - Best rates, all options
740-75996%7.43%$1,944Very Good - Near-best rates
720-73993%7.58%$1,973Good - Standard rates
700-71987%7.78%$2,012Good - Slightly higher rates
680-69978%8.03%$2,060Fair - Conventional available
660-67962%8.33%$2,119Fair - FHA recommended
640-65945%8.63%$2,179Below Avg - FHA likely required
620-63928%8.93%$2,239Poor - FHA minimum score
580-61912%9.63%$2,381Very Poor - FHA 3.5% down at 580
Below 5803%10.1%+$2,484+Very Poor - Very limited options

Rates are illustrative spreads above the Freddie Mac PMMS 30-year average of 7.28% (survey date October 1, 2026). No public source publishes average mortgage rates by credit score, so actual quotes vary by lender. Payments are principal and interest on a 30-year fixed loan. Approval rates are rough estimates.

Minimum Credit Scores by Loan Type

Loan TypeMinimum ScoreRequirements
Conventional6203% down, PMI required under 20%; most lenders still want 620
FHA5803.5% down payment
FHA (10% down)500-57910% down payment required
VANo minimumLenders typically want 620+
USDA640Rural properties only
Jumbo700-720Higher requirements for large loans
Non-QM500+Alternative documentation, higher rates

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Frequently Asked Questions

What credit score do I need to buy a house?

The minimum is 580 for an FHA loan with 3.5% down, or 500 with 10% down. Conventional loans usually require 620+ from lenders (Fannie Mae dropped its own DU minimum in November 2025). For the best rates, aim for 740+. Every 20-point increase in score saves 0.15-0.25% on your rate.

What is the average credit score for a mortgage?

The average credit score of approved mortgage borrowers in 2026 is 735. First-time buyers average 715, while refinancers average 745.

How much does credit score affect mortgage rate?

In this illustration, a 760 score gets 7.28% (the October 2026 Freddie Mac average) while a 660 score gets 8.33%, a 1.05% difference. On a $280,000 mortgage, that costs an extra $204/month or about $73,000 over 30 years. Actual quotes vary by lender.

How can I improve my credit score before applying?

Pay all bills on time, reduce credit card balances below 30% utilization (ideally under 10%), do not open new accounts, dispute any errors on your report, and become an authorized user on a family member's card. Allow 2-3 months for improvements to show.

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