All the estimates and percentages in this guide are based on a traditional 30-year fixed-rate mortgage. Your actual rate will depend on the lender, the loan program, your down payment, and the state you’re buying in. But the basic principle is universal: the better your credit score, the lower your rate, and the less you pay over time.
What Is a Good Credit Score for a Mortgage?
Most lenders use FICO scoring models, and the credit score needed for a mortgage can vary by loan type. For a conventional loan, lenders generally look for a score of 620 or higher. But you’ll want a score of 740 or above to get the best mortgage rates by credit score. The higher your score, the less risk you pose to the lender, which translates into lower interest rates.
Actually, the difference between a ‘good’ score and a ‘great’ score can be substantial. For example, a score of 700 might get you a rate of 7.0%, while a score of 760 could get you 6.5% on the same loan. That half-percent difference adds up.
Mortgage Rates by Credit Score: The Typical Tiers
Here’s a rough breakdown of how rates typically fall by credit score tier. These numbers are for a 30-year fixed-rate mortgage as of early 2026, but rates change daily. For the most current numbers, check our mortgage rate updates today.
- 760 and above: You’ll get the best rates, often around 6.25% to 6.5%.
- 740–759: Still excellent, but you might pay 0.1% to 0.25% more.
- 700–739: Rates are typically 6.5% to 7.0%.
- 680–699: You’ll see rates around 7.0% to 7.5%.
- 640–679: Expect rates in the 7.5% to 8.5% range.
- 620–639: Rates can be 8.5% or higher, if you’re approved at all.
These are just guidelines. Lenders look at your entire financial picture, but your credit score is the single biggest factor.
How Much Does a Credit Score Difference Really Matter?
Let’s put some numbers on it. Imagine you’re borrowing $300,000 on a 30-year fixed-rate mortgage.
With a credit score of 760, you might get a rate of 6.5%. Your monthly payment (principal and interest) would be around $1,896. With a score of 680, you might get a rate of 7.5%. Your payment jumps to about $2,097. That’s $201 more per month, or $2,412 a year. Over 30 years, you’d pay over $72,000 extra in interest.
The difference between a 760 and a 680 score could cost you more than $70,000. That’s money you could put toward a college fund, retirement, or a dream vacation.
Why the Three-Digit Number Matters
Your credit score is a snapshot of your financial history. It shows lenders how likely you are to repay a loan. Those with lower scores are statistically more likely to miss payments, so lenders charge them more to offset the risk. It’s not personal, it’s just math.
What Score Do You Need for the Best Mortgage Rate?
To get the absolute lowest mortgage rates by credit score, you need a score of 760 or higher. Some lenders put the cutoff at 740, but 760 is the safest bet. You’ll also need a solid down payment, a low debt-to-income ratio, and a stable income.
However, don’t assume you need a perfect 850. A score of 780 and a score of 820 often get the exact same rate. Once you’re in the top tier, you’ve proved you’re a low-risk borrower, and that extra 40 points doesn’t buy you anything.
Can You Get a Mortgage with a Low Credit Score?
Yes, you absolutely can—it just costs more. Here are some options.
FHA Loans
FHA loans are backed by the Federal Housing Administration. They allow down payments as low as 3.5% and accept credit scores as low as 580. If your score is between 500 and 579, you might still qualify with a 10% down payment.
VA Loans
If you’re a veteran or active-duty service member, a VA loan may be a great option. These loans have no down payment requirement and no strict minimum credit score. Most lenders, though, look for a score of at least 620.
USDA Loans
USDA loans are for rural homebuyers. They also have a 0% down payment option, but you’ll typically need a credit score of 640 or higher.
Non-QM Loans
Non-QM (non-qualified mortgage) loans are riskier for lenders, so you’ll pay significantly higher rates. You might consider these if you’re self-employed or have unusual income.
How to Improve Your Credit Score Before Applying
The good news is you’re not stuck with your current score. With a few months of focused effort, you could move into a lower rate tier. Here’s what to do.
- Check your credit reports for errors. Dispute any inaccuracies you find with the three major bureaus—Equifax, Experian, and TransUnion.
- Pay down your credit card balances. High credit utilization hurts your score. Aim to use less than 30% of your available credit, and ideally less than 10%.
- Pay all bills on time. Your payment history is the biggest factor in your credit score. Even one late payment can set you back.
- Don’t open new credit cards right before you apply for a mortgage. Hard inquiries can lower your score temporarily.
- Keep old accounts open. Closing a card cuts into your available credit and shortens your credit history.
You might be surprised how quickly your score can climb. For example, paying down a credit card balance from $5,000 to $1,000 could boost your score by 20 to 30 points within a month or two.
How Long Does It Take to Raise a Credit Score?
The timeline depends on your starting point and the steps you take. Correcting an error on your credit report can take effect in 30 to 45 days. Paying down balances can show up in your score in a month. Negative marks like a bankruptcy or foreclosure stay on your report for 7 to 10 years, but their impact fades over time.
If you’re planning to buy a home in the next year, it’s worth starting your credit improvement now. Even a 20-point bump could move you from the 700–739 tier to the 740–759 tier, saving you thousands.
Refinancing and Your Credit Score
Your credit score isn’t just for the purchase. It also matters when you refinance. If you’ve owned your home for a while and your score has improved, a rate-and-term refinance could lower your monthly payment. Check the latest refinance mortgage rates report to see if it’s worth it.
Also, if you’re considering a cash-out refinance, your credit score will influence your rate. A higher score can help you access your equity at a lower cost.
What Else Impacts Your Mortgage Rate?
Your credit score is a huge factor, but it’s not the only one. Lenders also consider:
- Your down payment: The more you put down, the less risk you pose. A 20% down payment gets you the best rates and lets you avoid private mortgage insurance (PMI).
- Your debt-to-income ratio: This is your monthly debts divided by your gross monthly income. Most lenders want this below 43%.
- Loan type: Adjustable-rate mortgages (ARMs) often have lower initial rates than fixed-rate loans.
- The economy: Inflation, the bond market, and the Federal Reserve all influence mortgage rates. Many experts expect rates to remain fairly steady in 2026, according to our 2026 rate forecast.
You can control some of these factors, and others are out of your hands. Focus on what you can change.
Don’t Forget to Shop Around
Even with the same credit score, different lenders can offer you very different rates. Some lenders specialize in working with borrowers who have lower scores. Others focus on super-prime customers. That’s why it pays to get quotes from at least three lenders.
And when you compare offers, make sure you’re looking at the annual percentage rate (APR) plus the total closing costs. A slightly higher rate with much lower fees might be a better deal for you.
Remember, the published mortgage rates you see online often assume a borrower with excellent credit. If your score is in the 600s, you’ll likely pay more. But knowing where you stand and what you can do about it puts you in a much stronger position when it’s time to buy.