Why credit scores matter for mortgage underwriting
Mortgage lenders use FICO mortgage score models (FICO 2, 4, 5). Consumer scores (VantageScore, Credit Karma) are not used for final underwriting decisions.
Minimum credit scores by program
- Conventional: Minimum 620 (automated); better pricing with higher scores. Learn more
- FHA: 500–579 w/10% down; 580+ w/3.5% down. Lender overlays vary. FHA details
- VA: No federal minimum; lenders commonly expect ~580–620. VA programs
- USDA: No federal minimum; automated approvals often require 640+. USDA eligibility
- KHC: Down payment assistance follows the underlying loan program. KHC details
Credit score components (what to fix)
- Payment history — most important (35%)
- Amounts owed / utilization (30%)
- Length of history (15%)
- Credit mix (10%)
- New credit / inquiries (10%)
Negative items timeline
Late payments, collections, and foreclosures typically remain on credit reports for 7 years. Bankruptcies can remain 7–10 years depending on chapter.
Fast action steps to improve credit
- Pay all accounts on time — set autopay where possible.
- Lower revolving balances below 30% of limits.
- Don’t open new credit within 6 months of applying.
- Pull your credit reports, dispute errors, and document resolutions.
Bottom line: You don’t need perfect credit to qualify. The right loan program and strategic fixes can get you mortgage-ready.
Frequently Asked Questions
- What credit score do mortgage lenders in Kentucky use?
Lenders use FICO mortgage scores (FICO 2, 4, 5), not consumer VantageScore results. - Minimum score for Conventional?
Generally 620 for automated approval; higher scores improve pricing. - Can I get an FHA with low credit?
Yes — 500–579 with 10% down; 580+ with 3.5% down. - Does VA have a minimum?
No federal minimum; most lenders expect ~580–620.
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