Your credit score is one of the first things a mortgage lender looks at, but it’s not a single magic number. Different loan types have different minimums, and a broker with access to dozens of programs can often find a path forward even when a bank has turned you down.
Here’s a plain-language breakdown of what scores are required for each major mortgage type in Pennsylvania.
FHA Loans: Minimum 580 (or 500 with 10% Down)
FHA loans are insured by the Federal Housing Administration and are one of the most flexible options for buyers with less-than-perfect credit.
- 580 or above: Qualify for the standard 3.5% down payment
- 500 to 579: You may still qualify, but lenders will require 10% down
- Below 500: Most lenders will not approve an FHA loan
Keep in mind that FHA has its own minimums, but individual lenders often set "overlays", higher internal requirements. Many lenders won’t go below 620 even for FHA, which is why working with a broker matters. Lena can identify FHA lenders who actually work with lower scores.
Conventional Loans: Minimum 620
Conventional loans follow Fannie Mae and Freddie Mac guidelines. The floor is 620, but your rate improves meaningfully as your score climbs:
| Credit Score Range | Rate Impact |
|---|---|
| 620 to 639 | Highest rates, PMI required |
| 640 to 679 | Moderate rates |
| 680 to 719 | Better pricing |
| 720 to 739 | Near-best rates |
| 740+ | Best conventional pricing |
If your score is 700 or above, conventional is often cheaper than FHA once you factor in FHA’s mortgage insurance premiums, which now run for the life of the loan on most FHA borrowers.
VA Loans: No Official Minimum, But Expect 580 to 620
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. The VA itself does not set a minimum credit score, but lenders do. Most VA lenders want to see at least 580, and many prefer 620.
The good news: VA loans have no private mortgage insurance and allow 0% down, making them the most powerful home loan available for those who qualify.
Jumbo Loans: 700 or Higher
Jumbo loans, mortgages above the conforming loan limit (currently $806,500 in most Pennsylvania counties for 2025), carry stricter requirements because they are not backed by Fannie Mae or Freddie Mac. Most jumbo lenders require:
- Credit score of 700+, with many preferring 720+
- Lower debt-to-income ratios
- Larger cash reserves
DSCR Loans: Typically 640+
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors. They qualify based on rental property cash flow, not your personal income or tax returns. Most DSCR programs require:
- Minimum credit score of 640
- Property DSCR of 1.0 or higher (rent covers the mortgage payment)
DSCR loans are available through non-agency lenders, and scores slightly below 640 may still be possible with strong compensating factors.
Non-QM Loans: Flexible, Depending on the Program
Non-QM (Non-Qualified Mortgage) programs exist outside traditional lending guidelines. They include bank statement loans, asset depletion, 1099 programs, and others. Credit score requirements vary by program and lender, but many Non-QM products accept scores in the 580 to 620 range with sufficient equity or down payment.
How to Improve Your Credit Score Before Applying
If your score isn’t where you need it, the following steps can move the needle:
Pay down revolving balances. Credit utilization, the percentage of your credit card limits you’re using, is one of the fastest-moving factors. Getting all cards below 30% of their limit (ideally below 10%) can add points within a billing cycle.
Don’t open new accounts. Each new application creates a hard inquiry and lowers your average account age.
Dispute errors. Pull your free reports from AnnualCreditReport.com and look for accounts that aren’t yours, incorrect late payments, or balances that don’t match.
Keep old accounts open. Closing an old card shortens your credit history and increases utilization.
Become an authorized user. If a family member has a long-standing, low-utilization account, being added as an authorized user can boost your score.
Check Your Credit Without Hurting It
Soft inquiries, such as checking your own score or getting pre-screened by a lender, do not affect your score. Hard inquiries happen when you formally apply. When rate shopping, multiple mortgage inquiries within a 14 to 45 day window are typically treated as a single inquiry by scoring models, so apply within that window once you’re ready.
Why Working With a Broker Gives You More Options
A bank can only offer its own loan products. When your score falls below one bank’s threshold, they have nothing else to offer you.
Lena Polnet has been placing Pennsylvania borrowers with the right programs for 28+ years. As an independent mortgage broker, she has access to dozens of lenders, including portfolio lenders, non-agency products, and government-backed programs, so she can match your credit profile to a program that actually works.
Ready to find out what you qualify for? Call (215) 364-7171 or visit dynamicfunding.net to discuss your situation.
Lena Polnet, NMLS #17225 | Dynamic Funding Solutions, NMLS #17144 | Huntingdon Valley, PA 19006 | (215) 364-7171 | dynamicfunding.net. This content is for informational purposes only and does not constitute a commitment to lend. Loan programs, rates, and terms are subject to change and borrower qualification. Not all applicants will qualify.