Last updated October 13, 2026
The minimum score to qualify for a mortgage and the score that gets you the best rate are very different numbers. Here is what credit score thresholds actually mean for St. Louis buyers in 2026 -- and what improving your score before you apply is actually worth in dollars.
Minimums from HUD, VA, Fannie Mae, Freddie Mac and MHDC; lenders can set higher floors. See minimums by loan ↓
580 for an FHA loan with 3.5% down, 640 for MHDC’s First Place and Next Step programs, and usually 620 or more for conventional loans, though that’s now a lender rule rather than a Fannie Mae or Freddie Mac one. VA has no official minimum. Qualifying at the minimum isn’t the same as getting a good rate; scores above 740 get the best conventional pricing.
On a $250,000 loan, the difference between a 660 and a 760 score can be about $80 to $160 a month, or $30,000 to $60,000 in interest over 30 years. See the math ↓
Usually three to six months of focused work: pay revolving balances below 30% of their limits, make every payment on time and don’t open new credit. Fixing errors on your report can work faster, sometimes within 60 to 90 days.
Yes, most often with FHA: 580 or higher qualifies for 3.5% down, and scores from 500 to 579 can qualify with 10% down. Since Fannie Mae and Freddie Mac dropped their fixed minimums, some conventional approvals now come in under 620 too, but many lenders still set their own floor. Which loan your score points you toward is covered in FHA vs. conventional. Buying With a Score Under 620 ↓
These are the floor scores -- the minimum needed to qualify. Qualifying at the minimum does not mean you will get the best rate or the most favorable terms.
| Loan Type | Minimum Score | Notes |
|---|---|---|
| FHA | 580 (3.5% down) / 500 (10% down) | MIP for life of loan if <10% down |
| Conventional | No fixed agency minimum; most lenders still want 620+ | Fannie Mae dropped its 620 floor for automated underwriting in Nov. 2025; Freddie Mac had already dropped its own. Better rates above 700; best above 740 |
| MHDC First Place / Next Step | 640 | MHDC’s published minimum; lenders can require more |
| VA | No official minimum; lenders typically require 580-620 | Best option for eligible veterans -- zero down, no PMI |
| USDA | 640 typical minimum | Eligible rural and suburban areas only |
| Best conventional rates | 740+ | Lowest PMI, best rate pricing |
Yes, most often with FHA: 580 or higher qualifies for 3.5% down, and scores from 500 to 579 can qualify with 10% down. Since Fannie Mae and Freddie Mac dropped their fixed minimums, some conventional approvals now come in under 620 too, but many lenders still set their own floor. Which loan your score points you toward is covered in FHA vs. conventional.
The gap between a qualifying score and a great score is not just cosmetic. On a $250,000 loan in 2026, the difference between a 660 and a 760 credit score can translate to approximately $80 to $160 more per month in payment -- roughly $30,000 to $60,000 in additional interest over 30 years.
That means three to six months of focused credit improvement before you apply can be worth more than any other financial move you make in this process. This is not an abstract observation -- I tell every buyer who is close to a threshold to take the time to get over it before we start seriously touring.
Mostly whether you pay on time and how much of your available credit you’re using: those two make up about 35% and 30% of a FICO score. Credit age and new applications follow.
The single largest factor. One 30-day late payment can drop your score by 60 to 110 points depending on your starting score. If you have late payments in your history, the impact diminishes over time -- a late payment from three years ago matters less than one from six months ago. Make every payment on time, every month, starting now.
The ratio of your current balances to your credit limits. Utilization above 30% on any card -- and above 10% for optimal scoring -- hurts your score. If you have a card with a $5,000 limit and a $3,500 balance, that is 70% utilization and it is dragging your score down significantly. Paying it to $1,500 moves you to 30% and produces a meaningful score improvement within 30 to 60 days.
The average age of your credit accounts. Do not close old accounts -- even ones you do not use -- before buying a home. Closing an old account reduces your average credit age and can lower your score.
Each new credit application triggers a hard inquiry that can lower your score. Do not open new credit cards, finance furniture, buy a car, or apply for any other credit between pre-approval and closing on your home.
No. Checking your own credit is a soft inquiry and doesn’t affect your score, so check it before your lender does. Pull your free reports from all three bureaus at AnnualCreditReport.com before you apply for pre-approval. Errors on credit reports are more common than most people expect. A collection account that is not yours, a payment incorrectly reported as late, or an account with a wrong balance can all be disputed and corrected -- and the correction can improve your score within 30 to 45 days of the dispute being resolved.
Do this at least 60 days before you plan to apply for pre-approval so you have time to dispute and correct any errors you find.
What happens after your credit is in shape -- the full pre-approval process in St. Louis. How to Get Pre-Approved for a Mortgage in St. Louis → → How your credit score determines which loan type is available to you -- and which is best. Conventional vs. FHA Loan in St. Louis → →Improving and checking your score
Mostly whether you pay on time and how much of your available credit you’re using: those two make up about 35% and 30% of a FICO score. Credit age and new applications follow. What Affects Your Score ↑
No. Checking your own credit is a soft inquiry and doesn’t affect your score, so check it before your lender does. Pull your free reports from all three bureaus at AnnualCreditReport.com before you apply for pre-approval. Errors on credit reports are more common than most people expect. A collection account that is not yours, a payment incorrectly reported as late, or an account with a wrong balance can all be disputed and corrected -- and the correction can improve your score within 30 to 45 days of the dispute being resolved. Check Your Credit Before Your Lender Does ↑
Before you buy
Usually the middle of your three scores from Equifax, Experian and TransUnion. Fannie Mae and Freddie Mac kept that three-bureau report, and since July 2025 lenders selling loans to them may use VantageScore 4.0 as well as Classic FICO. Ask your lender which model and which score it’s using.
Talk to a lender before you’re under contract. I send every buyer to a lender first, and then the lender and I go over what not to touch on your credit and how any change would affect what you can buy. That’s why credit surprises rarely happen to my clients.
Wait until after you close. A new car loan, financed furniture or a new credit card between pre-approval and closing adds a debt or an inquiry that can change your approval. I tell buyers to hold every big purchase until the house has closed.
No. Closing an old account lowers your average credit age and can lower your score. Leave your accounts open until after you close.
Past credit problems
Usually two years after a Chapter 7 discharge for an FHA loan and four years for a conventional loan. After a foreclosure, it’s generally three years for FHA and seven for conventional, which can be shorter with documented extenuating circumstances. Your lender confirms the exact waiting period for your situation.
This is one piece of the St. Louis home buying process. See how it all fits together:
📚 Complete St. Louis Buyer Guide →
Grew up in South St. Louis, lived in Dogtown for 6 years, now in South County. You'll find us at Wellspring on Lindbergh on Sundays. I'm not selling you a house — I'm showing you how to think about buying or selling a house.
Ready to talk through your financing situation before you commit to anything? I work with buyers at every stage -- including before pre-approval. No pressure, no agenda.