What Is the Minimum Credit Score Needed to Qualify for a Mortgage, HELOC, or Cash-Out Loan?

It ranges from about 500 to the mid-600s, depending on the program and the lender. FHA allows scores as low as 500 with 10% down, or 580 with 3.5% down. VA sets no minimum of its own, and lenders commonly look for around 620. Conventional cash-out refinances commonly start around 620, and standalone HELOCs often ask for 620 to 680. Higher scores keep improving your price.

Last updated September 29, 2026

What are the minimums by loan type?

It depends on your situation:

  • FHA: the program floor is 500 with at least 10% down, and 580 or higher opens the 3.5% down payment. Many lenders set their own higher minimum.
  • VA: VA sets no minimum score; each lender does, commonly around 620.
  • Conventional cash-out refinance or home equity loan: 620 is the common benchmark. Since late 2025, Fannie Mae's automated underwriting no longer applies a fixed minimum score, relying on a wider risk review, but many lenders still use 620.
  • Standalone HELOC: often a higher bar than a first-mortgage refinance, commonly 620 to 660, and some lenders want 680 or more.
  • Strong compensating factors: some lenders make exceptions below their usual minimum for lots of equity, a large down payment or strong income, case by case.

Why does FHA have two numbers?

The true floor is 500, but only with at least 10% down. You'll hear 580 more often because that's the score for FHA's 3.5% down payment. Many lenders also won't go below 580 or 600, even though FHA allows it.

Why doesn't VA publish a minimum?

VA's rules focus on the loan's overall risk and your ability to repay, including residual income, rather than a set score. Lenders still set their own minimums, so check with more than one, since those differ.

What score gets the best price?

Higher is better well past the minimums. On loans sold to Fannie Mae, the pricing grid keeps improving as scores rise, with its top band at 780 and above. Standalone HELOCs, as second liens, tend to price more sensitively to your score than a first mortgage.

Key facts
FHA500 with 10% down; 580 with 3.5% down
VANo VA minimum
Conventional cash-out or home equity loanAround 620
Standalone HELOCCommonly 620 to 660 or more
Best conventional pricingImproves up to 780 and above

Related questions

Sources

  • https://www.va.gov/housing-assistance/home-loans/eligibility/
  • https://www.veteransunited.com/realestate/va-loans-and-credit-score-minimums-what-all-buyers-need-to-know
  • https://valoannetwork.com/va-loans/minimum-credit-score-needed-for-va-loans
  • https://www.hud.gov/sites/documents/10-29ml.pdf
  • https://answers.hud.gov/FHA/s/article/Does-FHA-require-a-minimum-credit-score-and-how-is-it-determined
  • https://www.directcorp.com/reports/programguidelines/6274.pdf
  • https://singlefamily.fanniemae.com/media/20786/display
  • https://nationalmortgageprofessional.com/news/fannie-mae-ending-its-hard-620-score-cutoff
  • https://www.amerisave.com/learn/essential-credit-score-requirements-for-cashout-refinancing-in-what-you-need-to-qualify
  • https://singlefamily.fanniemae.com/media/9391/display

Sourced from licensed loan officers and brokers in the FreeRateUpdate network.

Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.

Mortgage and Home Equity Calculators

Estimate a payment before you talk to a lender. Each explains its math.

Mortgage Guides and Answers

The questions rate shoppers ask, and the explainers that go with them.

  • FAQ Answers to common mortgage and home equity questions, grouped by topic.
  • Blogs Longer explainers on buying, refinancing and borrowing against equity.
  • Is a Lender Legitimate? Check a company or loan officer in the free NMLS lookup.
  • Direct Lender or Broker? Who actually underwrites and funds your loan, and how to ask.

FreeRateUpdate Rates & Data

The rate and market data we publish, including figures measured from our own lender network and the consumers who shop rates here.

Ask Hope Anything About Mortgage & Home Equity!

Hope is AI and can make mistakes. Please double-check responses. About Hope * Advertising Disclosure