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Many mortgage lenders sell the mortgages they issue to the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. To ensure they can sell the loan, they need to align their lending standards with the GSEs' underwriting and score requirements.
As a result, mortgage lenders often use classic FICO® Scores☉ Θ to assess the loans they sell. Some approved lenders are alternatively using the VantageScore® 4.0 credit score. Lenders also might receive a FICO® Score 10T alongside the classic FICO® Scores, and the GSEs are expected to accept the FICO® Score 10T on its own in the future.
Which Credit Scores Do Mortgage Lenders Use for Mortgage Applications?
Many mortgage lenders use classic FICO® Score models, and some approved lenders can also use the VantageScore 4.0 model for mortgage applications.
There are three classic FICO® Score models because FICO created slightly different models for each credit bureau—Experian, TransUnion and Equifax—and they are named:
- FICO® Score 2, or Experian/Fair Isaac Risk Model v2
- FICO® Score 5, or Equifax Beacon 5
- FICO® Score 4, or TransUnion FICO Risk Score 04
VantageScore uses the same VantageScore 4.0 model with all three bureaus.
There is also a plan to approve the FICO® 10T for mortgage lenders, and dozens of lenders are already receiving the score (alongside the classic FICO® Score models) to help them manage the transition.
No matter which scores they use, mortgage lenders often get a single "tri-merge" report that contains your credit reports from each of the three credit bureaus and the associated credit scores. They might use the middle credit score or, if you're applying jointly with a partner, the lower middle score of the two.
How Do the Credit Scores Used by Mortgage Lenders Differ?
All three classic FICO® Scores, VantageScore 4.0 and FICO® 10T are calculated based on the information from one of your credit reports. However, the newer models may be more predictive and consider types of data that weren't as widely available when the older models were created.
For example, FICO® 10T and VantageScore 4.0 credit scores can consider rental payments in your credit file and trends in your credit history, such as how your credit utilization ratio changes over time. They also treat medical collections differently than other types of collections and ignore paid collection accounts.
Do All Mortgage Lenders Use the Same Credit Scores?
Mortgage lenders are currently required to use the classic FICO® Scores or VantageScore 4.0 when selling mortgage loans to the GSEs.
However, lenders can choose to use different models if they don't plan to sell the loan to a GSE or have other requirements to use specific scoring models. This could be the case with some non-conforming loans or with portfolio loans, which are loans that the lender plans to keep in its own portfolio.
Even the lenders who sell to the GSE can now pick between the classic FICO® Scores and VantageScore 4.0. And they'll be able to use FICO® 10T in the future.
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What Is a Good Credit Score to Buy a House?
Higher credit scores can help you qualify for a lower interest rate when you get a mortgage. Additionally, different types of mortgages may have varying minimum credit score requirements:
| Mortgage Type | Minimum Credit Score |
|---|---|
| Conventional loan | 620 |
| Jumbo loan | 700 |
| FHA loan with 10% down | 500 |
| FHA loan with less than 10% down | 580 |
| VA loan | None given, but individual lenders typically require at least 620 |
| USDA loan | 580 |
For the government-backed mortgages (all but the jumbo and conventional loans above), the minimum credit score is the minimum that the program requires. However, lenders may have higher credit score requirements than the government program mandates.
For example, Veterans Affairs (VA) loans technically don't have a minimum credit score requirement, but many VA lenders require a credit score of at least 620.
What Else Do Mortgage Lenders Look at to Determine Mortgage Terms?
Your credit scores can be an important factor in getting approved for a mortgage and the rate you receive. However, mortgage lenders also consider other factors:
- Credit history: Even if you have good credit scores, the lender might deny your application if you recently filed for bankruptcy or had a home foreclosed on. Collection accounts, recent credit applications and open disputes could also affect your application.
- Employment and income: Lenders want to see that you have a predictable income. They might consider how long you've worked at a specific job or in an industry and ask for tax returns and pay stubs to verify your income. Your monthly income relative to debt payments, called your debt-to-income ratio (DTI), can also be an important factor.
- Mortgage reserves: Whether you have enough liquid assets to cover mortgage payments during an emergency is a key factor in the approval process.
- Loan-to-value ratio: Your loan-to-value (LTV) ratio compares the loan amount to the home's value. Different loan types may have varying maximum LTV requirements, with conventional loans often requiring an 80% LTV if you want to avoid paying for private mortgage insurance.
Other factors, such as the loan amount, your down payment and loan type can all play into whether you'll be approved and your mortgage's terms. Lenders may also have unique assessments, which is one reason shopping for a mortgage can be important.
How to Improve Your Credit Scores Before Applying for a Mortgage
Although there are differences in the credit score calculations, the classic FICO® Scores and the newer scoring models that mortgage lenders will use only consider the information in one of your credit reports. As a result, similar actions might help increase all your scores.
Some of the things you can do to improve your credit before applying for a mortgage:
- Pay your bills on time. Even missing one payment can hurt your credit scores. Try to pay all your bills on time, including accounts that aren't reported to the credit bureaus.
- Reduce credit card balances. Your credit card balances relative to your total available credit—your credit utilization ratio—can be an important scoring factor. Paying down credit card balances to lower your utilization ratio might help your credit scores. You might have a high utilization ratio even if you pay your credit card bills in full each month, but making early payments could help.
- Don't apply for other types of credit. Avoid applying for other loans and credit cards if you're shopping for a home. The hard inquiries and new credit accounts can lower your credit scores and increase your DTI.
In addition to getting your credit ready for a mortgage application, you want to get your finances in order. Saving up for a larger down payment, increasing your income and paying off debts may all help you qualify for a mortgage with better terms.
Frequently Asked Questions
Do All Mortgage Lenders Use the Same Credit Score?
Many mortgage lenders use the classic FICO® Scores from Experian, TransUnion and Equifax. Starting in 2026, some approved lenders are alternatively using the VantageScore 4.0. Mortgage lenders may also use the FICO® Score 10T in the future.
How Do Credit Scores Affect Mortgage Terms?
Your credit scores can have a direct impact on the types of mortgages you can get approved for and the interest rate you receive. Having higher credit scores can help you qualify for more types of loans, lower rates and even a lower down payment.
Can I Get a Mortgage With a Low Credit Score?
You may be able to get a mortgage with a low credit score, but it can depend on the type of mortgage, your down payments and your income. For example, you might qualify for an FHA loan with a 10% down payment if your score is 500 or higher.
Check Your Credit
Most services that offer free credit scores don't give you the classic FICO® Scores or VantageScore 4.0 that mortgage lenders generally use. But your other scores may closely align with those, and you can check your FICO® Score for free from Experian. Or, you may be able to pay for a report that includes one or more of the scores that mortgage lenders commonly use.