Credit Score Requirements for Mortgage Approval in 2025

If you’re thinking about buying a home this year, one of the first questions you might have is: What credit score do I need to qualify for a mortgage in 2025?

According to Tony Hamblin, a mortgage expert at tmanmortgages.com, "Your credit score is one of the biggest factors lenders look at when reviewing your loan application. But the good news is, there are more flexible options than ever before."

Minimum Credit Score Guidelines for 2025

The requirements vary depending on the type of loan you’re applying for:

• Conventional Loans: Typically require a minimum credit score of 620.

• FHA Loans: Often allow approval with a score as low as 580 with a 3.5% down payment.

• FHA with 10% Down: In some cases, FHA loans can go as low as 500, but only if you can put at least 10% down.

"FHA loans are a great option for buyers who have lower scores or less credit history," says Tony Hamblin.

What’s New in 2025: VantageScore 4.0

Here’s a major update this year: both Fannie Mae and Freddie Mac are now using a new credit scoring model called VantageScore 4.0. What does that mean for buyers?

Unlike traditional models, VantageScore 4.0 includes on-time payments for rent, utilities, and phone bills. That’s a huge win for renters or anyone with limited credit history.

"This change is a game-changer for first-time buyers," explains Tony Hamblin on tmanmortgages.com. "If you’ve been paying rent and utilities on time, it can now help your credit profile in ways it couldn’t before."

Why Your Credit Score Still Matters

While it’s possible to qualify with a lower score, a higher credit score gives you more loan options—and often, a better interest rate. It also affects how much you may need to pay in mortgage insurance.

Here are a few quick tips to boost your score:

• Keep credit card balances low

• Avoid new debt or credit inquiries during the loan process

• Make all payments on time

"We work with buyers across all credit levels," says Tony Hamblin, "and we always start with a clear plan to strengthen your profile before locking in a loan."

Bottom Line

Don’t let credit score confusion hold you back from exploring homeownership. There are programs available for a wide range of scores—and 2025 brings even more flexibility thanks to smarter scoring models.

Sources: Experian.com, MyFICO.com, FreddieMac.com, FannieMae.com