Which Credit Score Do Mortgage Lenders Use?

So, you’re ready to buy a house: You’ve mentally decorated the place, planned your housewarming party menu, and maybe even argued with yourself about whether you really need that extra bedroom. But before you start curating Pinterest boards, there’s one not-so-small detail standing between you and homeownership: your mortgage credit score.

And here’s where things get fun (or frustrating, depending on your outlook). Mortgage lenders don’t just check your credit score and call it a day. No, no. They look at multiple versions of your home loan credit score, from three different bureaus, using a special set of FICO scores that you probably didn’t even know existed. Oh, and they don’t even pick the best one — they go with the middle score. So, which credit score do mortgage lenders use? That’s exactly why we’re here. Let’s break it all down.

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Credit scores used by mortgage lenders

Which credit score is used for mortgage applications? The answer is a big “Depends.”  If you’re assuming mortgage lenders use the same FICO score you see when you check your credit on an app, guess again. The credit score needed for a home loan isn’t a single magic number; it depends on the lender’s requirements. When applying for a mortgage, lenders pull three different versions of your credit score, each provided by one of the three major credit bureaus.

Why? Because no single credit report tells the whole story. Each bureau tracks your credit slightly differently, and creditors don’t always report to all three. So, to get the most accurate picture of a good credit score for mortgage approval, lenders use these:

FICO Score 2 (Experian)

FICO Score 2, the Experian/Fair Isaac Risk Model v2, puts a magnifying glass on your credit score for a house, focusing on your payment history and total debt. If you’ve got late payments lurking in your past, the FICO 2 will make sure lenders see them. This score emphasizes factors like payment history and overall debt levels to evaluate your reliability when paying back loans. 

FICO Score 5 (Equifax)

With FICO Score 5, lenders look at your credit report from Equifax. Think of this as the “big-picture” version. It weighs factors like major loans, lines of credit, and overall debt levels. If you’ve been juggling multiple loans like a financial acrobat, this score will spill the tea.

FICO Score 4 (TransUnion)

TransUnion’s Score 4 focuses on credit utilization — aka how much of your available credit you’re actually using. If your credit cards are maxed out, expect this score to take a hit.

Mortgage lenders pull all three when evaluating your credit rating for a mortgage, but here’s the twist: they don’t use the highest or the lowest score. Instead, they pick the one in the middle. So, if your scores are 680, 710, and 720, they’ll use 710. If you’re applying with a co-borrower, they’ll use the lower middle score between both applicants. Bruuuutal.

Why some mortgage lenders may pull all three credit scores

Wouldn’t it be nice if lenders just picked your highest score and called it a day? Unfortunately, that’s not how it works. Since different creditors report to different bureaus, no single credit score tells the full story.

By pulling all three, lenders get a bird’s-eye view of your financial habits — the good, the bad, and the questionable. That’s why they go with the middle score. It helps them get a more balanced view of your creditworthiness without being swayed by a single outlier.

For joint applications, lenders take it a step further: instead of averaging your scores with your co-borrower’s, they use the lower middle score. So, if your partner’s score is lower than yours, it could be the deciding factor in your loan terms — or whether you get approved at all. (No pressure, right?)

Minimum credit score requirements for mortgages

So, what’s the minimum number that can potentially launch you into the mortgage game? The minimum credit score for a home loan depends on what type of loan you’re applying for.

Conventional loans

• Minimum credit score: 620
• Conventional loans aren’t backed by the government, which means lenders take on more risk — so they prefer borrowers with solid credit. If you want the best rates, aim for 700+.

FHA loans

• Minimum credit score: 580 (or as low as 500 with a bigger down payment)
• FHA loans are great for first-time buyers or those with less-than-perfect credit. They’re backed by the Federal Housing Administration, making lenders more willing to approve borrowers with lower scores.

VA loans

• Available from the Department of Veterans Affairs to veterans, active-duty service members, and eligible spouses, VA home loans offer perks like zero down payment and no private mortgage insurance (PMI), making them one of the best mortgage options out there.

USDA loans 

• Minimum credit score: No official requirement, but most lenders look for 640+
• USDA loans are designed for buyers in rural areas and come with low interest rates and no down payment. If you’re looking for affordable homeownership, this could be your golden ticket.

Factors that influence your mortgage credit score

Your credit score to buy a house isn’t just some arbitrary number — it’s made up of multiple factors, each carrying a different weight.

• Payment history: Your payment history is the most important factor in determining your credit score, accounting for roughly 35% of the total. Lenders want to see a track record of on-time payments: Late or missed payments signal risk, which makes you less likely to get a favorable mortgage deal.
• Credit utilization: Refers to how much of your available credit you’re using at any given time. A lower utilization rate — ideally below 30% — is best for your score. This shows lenders that you’re not maxing out your credit cards and managing your credit responsibly.
• Length of credit history: The length of your credit history makes up about 15% of your score. A longer credit history shows stability, while a shorter history means less data for lenders to judge your habits. The key is to keep old accounts open, even if you’re not using them frequently.
• Types of credit accounts: The different types of credit accounts you have — credit cards, student loans, car loans — also influence your score. Having a mix of account types shows lenders you can handle different kinds of credit responsibly, which can work in your favor.
• Recent credit inquiries: If you’ve recently applied for new credit, these hard inquiries can negatively impact your score. Too many inquiries suggest you may be in financial distress, which isn’t a good look if you’re applying for a mortgage.

How to improve your credit scores before applying for a mortgage

A good credit score for a home loan means lower interest rates and better mortgage terms. Here’s how to help make sure your score is in top shape before applying:

👉🏻 Pay all your bills on time: Payment history makes up 35% of your FICO score, so setting up automatic payments can ensure you never miss a due date. Paying consistently is crucial to showing lenders you can handle regular mortgage payments.

👉🏻 Reduce credit card balances: Lowering your credit utilization below 30% of your available credit limit can seriously boost your score. Focus on paying down the cards with the highest balances first.

👉🏻Avoid new credit applications: In the months leading up to your mortgage application, it’s best to refrain from applying for new credit. Each hard inquiry temporarily lowers your score, which could harm your mortgage approval.

👉🏻 Keep old credit accounts open: The length of your credit history matters, so don’t close old credit accounts. Instead, use them occasionally for small purchases to keep them active.

👉🏻 Check and correct credit reports: Get your credit reports from all three bureaus (Equifax, Experian and TransUnion) and correct any inaccuracies. Errors can drag down your score, so dispute any issues you find.

What other factors do mortgage lenders consider to determine terms?

Your credit score is a big deal, but it’s not the only factor mortgage lenders evaluate. Even if you have a good credit score for a mortgage, lenders will still take a deep dive into other aspects of your financial life before approving your loan. Here’s what else they look at:

✅ Credit history: Your credit score for a house is just a number, but your credit history tells the full story. Lenders want to see a pattern of responsible borrowing — meaning no major red flags like bankruptcies, foreclosures, or accounts sent to collections. They’ll also check how long you’ve been using credit and whether you’ve handled past loans responsibly. A long, positive credit history can help offset a slightly lower score.

✅ Employment and income: Lenders are really into stability. A steady job with consistent income reassures them that you’ll be able to make your mortgage payments. They’ll check your employment history, pay stubs, tax returns, and sometimes even bank statements to confirm that your income is reliable. If you’ve recently changed jobs or have irregular income—such as being self-employed—you may need to provide extra documentation to prove financial stability.

✅ Loan-to-value ratio: The loan-to-value ratio (LTV) compares the loan amount to the actual value of the home. The more you put down upfront, the lower your LTV—and the better your chances of approval. A lower LTV signals less risk for the lender, which can also mean better interest rates and loan terms. If your down payment is small, you may be required to pay private mortgage insurance (PMI), which adds to your monthly costs.

✅Mortgage reserves: Think of mortgage reserves as your financial safety net. Lenders want to know you have extra cash set aside — usually enough to cover at least two to six months’ worth of mortgage payments. This shows them that even if an unexpected expense pops up (because life happens), you’ll still be able to make your payments on time. Having strong reserves can sometimes help offset other weaker areas in your application, such as a slightly lower credit score to buy a house.

Your Credit Score = Your Mortgage Fate

Your credit score to get a home loan isn’t just a random string of digits — it’s your golden ticket (or roadblock) to homeownership. The good news? You can improve it with smart financial habits.

Looking to boost your credit and get mortgage-ready? MoneyLion has your back — track your score, make a plan, and take control of your financial future today.

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