What Credit Scores Do Mortgage Lenders Use?

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What Credit Score Do Most Mortgage Lenders Use?

Despite the arrival of newer models, FICO remains the industry gold standard — 90% of top lenders still rely on it to make informed lending decisions.

There are multiple FICO score versions, including the most widely used 8 and 9, which all three credit-reporting agencies use for their credit profiles. Most mortgage lenders check older models used specifically for home lending — versions 2, 4, and 5 — depending on the reporting agency they use.

What Credit Score Range Do You Need for a Mortgage?

Every lender weighs many variables when deciding whether to lend money, how much, and at what interest rate, but generally, here’s what to expect from the following credit score ranges.

• Above 740: Excellent credit that represents the lowest risk and qualifies for the best interest rates.
• 670 to 739: Good credit, which is still attractive enough for lenders to offer favorable loan terms and rates.
• 580 to 669: Fair credit, which might qualify for FHA loans if not for conventional loans.
• Below 580: Poor credit, which limits your options and comes with higher rates — if you can get a loan at all.

Tip: Even if your score is shaky, loans backed by government agencies like the FHA, VA, and USDA have more flexible credit requirements for those who qualify.  

How Are Mortgage Credit Scores Different from Other Scores?

How to Check the Same Credit Scores Mortgage Lenders Use

Anyone can see accurate representations of their credit scores with free tools from their banks or credit card companies, or through free apps like Credit Karma. 

However, the results might be different than the scores that mortgage lenders see. You can check your FICO scores 2, 4 and 5 directly from myFICO.com by subscribing to the Advanced or Premier paid tiers.

How to Improve Your Credit Score Before Applying for a Mortgage

If your score is too low to qualify for a mortgage loan or a favorable interest rate, take the following steps to bring your number up. 

• Pay all your bills on time, every time — payment history accounts for 35% of your score.
• Reduce your credit card balances — lenders prefer borrowers who use less than 30% of their available credit. 
• Don’t apply for new credit shortly before applying for a mortgage.
• Check your credit reports for mistakes and challenge any errors you find.
• Keep old accounts open to present a longer credit history.

Remember, every point counts — even a small bump in your score can increase your approval odds and earn you lower interest rates, potentially saving you tens of thousands of dollars over the life of the loan.

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