How mortgage lenders actually read your credit
When you apply for a mortgage, the lender pulls a merged credit report from all three bureaus — Equifax, Experian, and TransUnion. Each bureau produces a FICO score. The lender uses the middle of the three.
If two borrowers are on the loan, the lender uses the lower of the two middle scores as the qualifying score. That's why one applicant's credit hiccup can move the whole file.
The real minimums by loan type
These are common floors. Individual lenders may set stricter overlays on top.
- Conventional (Fannie Mae / Freddie Mac) — typically 620 minimum, with better pricing at 680, 720, and 740+.
- FHA — 580 minimum for the 3.5% down program; some lenders allow 500–579 with 10% down.
- VA — no federal minimum, but most lenders require 580–620.
- USDA — no federal minimum, but most lenders require 640 for streamlined underwriting.
- Jumbo — usually 700+, sometimes 740+, depending on the investor.
Why the score on your credit card app is misleading
The score you see on a credit card app, banking site, or a free credit site is almost always a consumer or educational score — VantageScore or FICO 8. Mortgage lenders use older FICO models (FICO 2, 4, and 5) chosen by each bureau.
It's not that one is 'right' and the other is 'wrong.' They weight your history differently, especially medical collections, authorized user accounts, and utilization. The result: your mortgage score can land 20–40 points below the number you see on your phone. Neither of us likes this. It's just the system.
What actually moves your score before closing
If you have a specific target — say, 20 points to reach a better pricing tier — a lender's rapid rescore or a targeted paydown plan often gets there faster than generic advice.
- Pay down revolving credit card balances below 30% (and ideally below 10%) of the limit on each card.
- Do not close old credit cards, even ones you rarely use — length of history matters.
- Dispute clear errors on the report through the bureau, not through a paid service.
- Do not open new credit lines or co-sign for anyone during the loan process.
- Keep on-time payments across everything — a single 30-day late can drop a score meaningfully.
Things not to do between pre-approval and closing
Once you're pre-approved, your credit will typically be pulled again shortly before closing. New activity can re-underwrite the entire loan.
- Don't finance furniture, appliances, or a car.
- Don't apply for a new credit card — even the store card with the tempting welcome discount.
- Don't co-sign for a family member.
- Don't move large sums of money between accounts without documenting the source.
