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What Credit Score Do Home Lenders Look At

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What Credit Score Do Home Lenders Look At

Home lenders most often use your middle FICO score, drawn from Equifax, Experian, and TransUnion, as the primary number in underwriting decisions. For joint applications, they typically take the lower middle score of the two borrowers. The exact score matters less than the model version and the lender's minimum threshold, which shifts depending on the loan program.

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Which FICO Versions Appear on a Mortgage Credit Report

Mortgage lenders pull industry-specific FICO versions that are not the same as the free scores you see in banking apps. The most common versions in use today include:

  • FICO Score 2 (Experian)
  • FICO Score 5 (Equifax)
  • FICO Score 4 (TransUnion)
  • FICO Score 8 (used by some non-mortgage lenders)

These versions weight payment history, credit utilization, and account age in ways tailored to mortgage risk, so the number you see on a credit monitoring service can differ from what the underwriter sees.

Minimum Scores by Loan Type

Minimum credit score requirements vary by loan program and lender appetite. The table below shows general thresholds, but individual lenders may set higher floors.

Loan TypeTypical Minimum Middle ScoreNotes
Conventional620Many lenders want 680 or higher for best pricing
FHA580Lower scores possible with larger down payments
VANo official minimumLenders still evaluate score and compensating factors
USDA640Automated underwriting may accept lower with strong compensators

Why the Middle Score and Not the Highest

Lenders use the middle score because it reduces the impact of outlier reports and limits the temptation to shop for the most favorable bureau. It also creates a consistent baseline for comparing applicants. When two or more scores land far apart, the middle score still sits between them, giving a balanced view of credit risk.

What Else Lenders Review Beyond the Score

A credit score is one data point in a broader underwriting picture. Lenders also evaluate debt-to-income ratio, employment history, asset reserves, and the specific items on your credit report, such as late payments, collections, or recent inquiries. A strong score paired with thin documentation can still slow approval, while a modest score with compensating strengths may still clear underwriting.

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