📌 Key Takeaways
- Conventional loans generally want a score in the low-to-mid 600s or higher; FHA can often go to 580 with 3.5% down.
- Your score is one of the biggest drivers of your interest rate — a higher score can save tens of thousands over the life of the loan.
- You can often raise your score meaningfully in a few months by lowering credit-card balances and fixing report errors before you apply.
Your credit score quietly decides both whether you qualify and what you'll pay every month for decades. Here's what you need to buy in California.
What score do you actually need?
There's no single magic number, because each loan program sets its own floor.
- Conventional: typically a mid-600s minimum, with the best pricing reserved for scores in the 740+ range.
- FHA: more flexible — often down to 580 with 3.5% down, and sometimes lower with a larger down payment.
- VA: no government-set minimum, though most lenders look for around 620.
How your score affects your rate
Lenders price loans in credit-score tiers. Moving from a "good" tier into an "excellent" one can shave a meaningful amount off your interest rate, and on a multi-hundred-thousand-dollar California mortgage, even a fraction of a percent compounds into tens of thousands of dollars over 30 years. That's why it's worth improving your score before you lock a loan rather than after.
How to improve your score before buying
The two fastest levers are credit utilization and accuracy. Paying credit-card balances down below about 30% — ideally under 10% — of their limits can lift your score within a billing cycle or two. Pull your reports and dispute any errors, which are surprisingly common. Beyond that, keep older accounts open, make every payment on time, and avoid applying for new credit while you prepare to buy.
Mistakes to avoid during escrow
Once you're approved and in escrow, treat your credit as frozen. Do not finance a car, open a new credit card, co-sign a loan, or make large unexplained deposits. Lenders often re-pull credit right before closing, and a single new account or a jump in balances can change your debt-to-income ratio enough to delay — or even derail — your loan.
Get 1% cash back when you buy in SoCal
Free consultation · Full-service agent · DRE #02232009
Get my free rebate estimate →Frequently Asked Questions
It depends on the loan. FHA can go as low as 580 with 3.5% down, while conventional loans generally want the low-to-mid 600s. Higher scores unlock better interest rates.
No. Checking your own score is a soft inquiry and has no effect. Even a lender's hard inquiry during mortgage shopping has only a small, temporary impact, and multiple mortgage inquiries in a short window are typically treated as one.
Often faster than people expect. Lowering credit-card balances can show up within one to two billing cycles, while rebuilding from missed payments takes longer. Many buyers see a useful bump within a few months.
Mike Basti founded Portfolio Home Realty to give Southern California buyers full-service representation and real cash back at closing. Licensed California broker serving LA County and Orange County. Call (949) 379-5320.