What's a Good Experian Score for Mortgage?

Lenders typically want an Experian score of at least 720 for the most competitive mortgage rates, while an Experian score of 680‑719 still qualifies you for decent terms and 620‑679 meets the minimum underwriting standards for most conventional, FHA, and VA loans.

Higher Experian scores reduce perceived risk, so lenders reward them with lower interest rates and broader loan‑type eligibility; that's why the next section breaks down the exact cutoffs for each loan program. Fannie Mae Experian score guidelines

Higher Experian scores give you more loan choices and lower interest rates, while lower scores shrink options and raise costs.

• 760‑850: Typically qualifies for any conventional loan with as little as 3 % down, often earns the best rates and avoids private‑mortgage insurance (PMI).
• 720‑759: Generally clears conventional underwriting with 5 % down, still accesses competitive rates, but may incur modest PMI.
• 680‑719: Usually meets the minimum for conventional loans at 10 % down; rates rise modestly, and lenders often recommend FHA for a 3.5 % down option.
• 620‑679: Generally the lowest Experiencing score accepted for FHA and VA loans; conventional financing often requires 20 % down and carries higher rates, while some lenders may reject outright.
• 300‑619: Typically ineligible for conventional, FHA, or VA programs; borrowers must seek sub‑prime lenders, expect steep rate marks‑up and additional fees.

Conventional loans typically need an Experian score of 620 or higher, FHA loans start at 580 (or 500 with 10% down), and VA loans generally require 620 but many lenders set a 640 minimum.

• Conventional - minimum Experian score 620; scores 680 or above unlock the best rates and the lowest private‑mortgage‑insurance (PMI) costs.
• FHA - Experian score 580 allows the 3.5% down payment; borrowers with 500‑579 can qualify only with a 10% down payment and may face higher fees.
• VA - Experian score 620 is the baseline; many VA‑approved lenders prefer 640 or higher to avoid higher interest margins.
• Lender overlays - even though the agency limits are as above, individual lenders often add a 10‑point or 20‑point buffer, so aim for 660 or more for the smoothest approval.FHA loan credit requirements

A 20‑point rise in your Experian score usually trims your mortgage rate by about 0.10‑0.15 percentage points.

Lenders apply the same banding across loan types, so the impact looks like this:

• Conventional loans: 0.10‑0.13 % lower rate per 20‑point bump.
• FHA loans: 0.11‑0.14 % lower rate per 20‑point bump.
• VA loans: 0.12‑0.15 % lower rate per 20‑point bump.

Even a single‑digit reduction adds up to thousands of dollars over a 30‑year term, which is why monitoring your Experian score before you hit the 'common Experian errors' section can save you money.

The most common Experian errors that sink mortgage approvals involve inaccurate personal data, mis‑reported account details, and false payment history.

• Typically, wrong name, Social Security number or birth date merges your file with another consumer's, showing erroneous debts and lowering your Experian score.
• Typically, an out‑of‑date account status - such as a closed credit card reported as open - inflates utilization and can drop your Experian score below conventional, FHA or VA cutoffs.
• Typically, payment‑history errors, like a late‑payment flag that never occurred or missing on‑time marks, pull your Experian score down.
• Typically, duplicate hard inquiries or inquiries that belong to someone else add unnecessary negative factors to your Experian score.
• Typically, incorrect balance or credit‑limit figures miscalculate utilization, often turning a qualifying Experian score into a borderline one.

Boost your Experian score quickly with these five actions before you submit a mortgage application.

1. Pay down revolving balances to under 30 % of each credit limit. Dropping utilization from 45 % to 25 % can lift the Experian score by 20‑30 points within a billing cycle.
2. Dispute any inaccurate entries on your Experian report. File a formal dispute through Experian's online portal; corrected errors often add 10‑40 points once verified.
3. Become an authorized user on a family member's well‑managed account that carries a high Experian score. The added positive history typically raises your score within 30 days.
4. Freeze new hard inquiries for at least 30 days before applying. Each unnecessary inquiry can shave 5‑10 points, so a clean inquiry slate preserves your current level.
5. Set up automatic payments on all existing loans and credit cards. Consistently on‑time payments are the strongest factor; avoiding a single missed payment can prevent a 30‑point dip.

These steps target the key components lenders weigh for conventional, FHA, and VA mortgages, giving you the fastest path to a stronger Experian score before you apply.

Stop repairing credit when your Experian score reaches the level that secures the rate you need for a conventional, FHA, or VA loan and you can enter a rate‑lock window without risking new negatives.

Generally, lenders offer their best rates at ≈ 740 + for conventional mortgages, ≈ 680 + for FHA, and ≈ 700 + for VA; each 20‑point bump typically shaves 0.10‑0.15 % off the APR, so once you're within 5‑10 points of the target, the marginal gain from further repairs rarely justifies the time cost.

Lock the mortgage as soon as that Experian score stabilizes - usually after 2‑3 months of no hard inquiries or pending disputes - and the rate‑lock period (often 30‑60 days) begins. Avoid opening new credit lines, settling large debts, or disputing items until after the lock, because any fluctuation could force a re‑price. With the score solid and the lock in place, you're ready to move on to the real‑borrower examples that illustrate outcomes at different score thresholds.

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• Borrower with a 720 Experian score secured a conventional 30‑year loan at a 6.25% APR, qualified for the lowest rate tier discussed in section 4, and locked the rate without additional points.
• Borrower with a 680 Experian score obtained an FHA loan at a 6.75% APR, met the minimum 620 cutoff, paid a small discount point to offset the slightly higher rate, and accepted the required mortgage‑insurance premium.
• Borrower with a 740 Experian score qualified for a VA loan at a 6.00% APR, benefitted from the no‑down‑payment rule, and avoided any private‑mortgage‑insurance, reflecting the premium‑rate advantage of scores above 730.
• Borrower with a 660 Experian score was approved for a conventional loan at a 7.15% APR, had to provide a 10% down payment, and accepted the higher rate that typically accompanies scores in the 650‑679 range.
• Borrower with a 640 Experian score received an FHA loan at a 7.50% APR, met the absolute minimum 580 cutoff for FHA, paid the upfront MIP, and accepted the highest rate tier shown in the rate‑shift table of section 4.

Self‑employed borrowers typically see lenders focus on a handful of Experian‑score‑related red flags that can stall a mortgage.

Lenders scan the same 300‑850 Experian score you saw earlier, then dig into patterns unique to business owners.

• Income documentation gaps - missing or late‑filed 1099s raise questions about steady cash flow, even when the Experian score is solid.
• High personal utilization from business expenses - credit cards used for business can push utilization above 30 %, dragging the Experian score down and signaling risk.
• Recent hard inquiries - multiple loan or line‑of‑credit pulls for equipment or inventory suggest a rising debt load, which lenders flag.
• Thin personal file despite strong business credit - Experian may show few trade lines if you rely on business credit, leading lenders to deem the Experian score 'incomplete.'
• Large fluctuations in reported debt - swings in balances on personal accounts used for business can appear as instability, prompting lenders to request extra documentation.

Because conventional, FHA, and VA programs all require a minimum Experian score (usually 620 for conventional, 580 for FHA, 620 for VA), any of these self‑employment signals can force the underwriter to request additional proof or push the borrower into a higher‑risk tier, which impacts the rate.

Addressing these issues before applying - by filing taxes promptly, paying down personal balances, limiting new inquiries, and supplementing the Experian file with a detailed profit‑and‑loss statement - helps lenders see the true creditworthiness behind the score and keeps the mortgage process moving toward approval.

A 'thin file' means you have fewer than six tradelines on your Experian report in the past 24 months, so Experian may not generate a score at all. Lenders typically compensate by using alternative data - rent, utility, cell‑phone bills - or by applying manual underwriting, which often requires a larger down payment, a co‑signer, or a higher debt‑to‑income ratio ceiling.

For example, a borrower with no Experian score but two years of on‑time rent and utility payments qualified for an FHA loan with the standard 5 % down payment, because the lender accepted the alternative data as proof of creditworthiness. Another applicant with only four tradelines and a minimum Experian score of 620 (the lowest conventional threshold) secured a conventional loan by putting down 10 % and keeping debt‑to‑income below 43 %. A third case involved a veteran with no Experian score who added a spouse whose Experian score topped 720; together they met the VA loan requirements without a down payment.

Each scenario shows how lenders generally evaluate thin‑file borrowers and what you can do to qualify.