How Your Credit Score Impacts Homebuying This Year

One of the most common questions Kenn Bartley hears from clients at kennbartley.com is: “What credit score do I need to get approved for a mortgage?”

In 2025, the answer depends on the type of loan you’re applying for—but there’s encouraging news for buyers across the credit spectrum.

Minimum Credit Score by Loan Type

Here’s a quick breakdown:

Conventional Loans
You’ll generally need a 620 credit score or higher to qualify for a conventional mortgage. This option is best suited for buyers with solid credit and at least a 3% down payment. Higher scores typically lead to better interest rates and lower overall costs.

FHA Loans
FHA loans are more flexible. You can qualify with a 580 score if you’re putting down just 3.5%. And in some cases, you may be eligible with a score as low as 500, if you can provide a 10% down payment.

What’s New in 2025: VantageScore 4.0

This year, there’s a major update that could help more buyers qualify. Fannie Mae and Freddie Mac are now incorporating the VantageScore 4.0 model in their evaluations.

Unlike older models, VantageScore 4.0 includes alternative credit data—like on-time rent, utility, and phone payments. That’s a big win for renters or anyone with a limited traditional credit history.

As Kenn Bartley explains on kennbartley.com, “This update gives buyers more credit for the bills they already pay responsibly. It can make the difference between getting approved or not.”

Why Your Score Still Matters

A higher credit score doesn’t just help you qualify—it also gives you access to better loan terms, including lower interest rates and reduced fees. That can translate into thousands of dollars saved over the life of your loan.

But even if your credit isn’t perfect, there are still programs that can work for you. Many buyers are surprised to learn they qualify sooner than they thought.

The Bottom Line

In 2025, the credit score you need depends on your loan type—but new scoring models are expanding access for more buyers. Whether your score is in the 500s or 700s, there are mortgage options to explore.

If you’re not sure where you stand, Kenn Bartley can help you review your credit, understand your options, and create a path to homeownership that fits your timeline and goals.

Sources: Experian.com, FHFA.gov, FannieMae.com, FreddieMac.com