What Credit Score Do I Need to Buy a Home in Florida?

Your credit score is one of the first things lenders check. Here’s what you need to know to get approved.

Minimum Credit Scores by Loan Type

Conventional loans: 620 minimum (620–680 gets higher rates) FHA loans: 580 minimum
VA loans: No strict minimum (lender-dependent, usually 620+) USDA loans: 580 minimum

But here’s the catch: just because you qualify doesn’t mean you get a good rate.

How Your Credit Score Affects Your Rate

The difference between a 680 score and a 750+ score can be 0.5–1.0% in interest rate.

On a $240,000 loan:

• 680 score @ 7.0%: $1,596/month
• 750+ score @ 6.0%: $1,439/month

That’s $157/month or $1,884/year in difference.

How Lenders Calculate Your Score

They look at:

• Payment history (35%): On-time payments matter most
• Credit utilization (30%): Keep credit cards below 30% of limit
• Length of credit history (15%): Longer is better
• Credit mix (10%): Different types of credit help
• New inquiries (10%): Multiple applications hurt temporarily

If Your Score is Below 620

You have options:

1. Wait 3–6 months while paying down debt and building history
2. Use FHA financing (allows 580+ with larger down payment)
3. Work with a mortgage broker who specializes in lower-credit borrowers
4. Ask a co-signer with better credit

Improving Your Score Before Applying

Timeline: 3–6 months before you apply

• Pay all bills on time (most impactful)
• Pay down credit card balances (aim for under 30% utilization)
• Don’t apply for new credit (hard inquiries hurt)
• Don’t close old accounts (length of history helps)
• Dispute any errors on your report (check AnnualCreditReport.com)

Even improving from 600 to 650 can lower your rate and get you better loan terms.

One More Thing: Manual Underwriting

Some lenders offer “manual underwriting” for scores below 620. If you have steady income, reasonable debt, and a good explanation for past credit issues, you might still qualify for conventional financing.

Always ask—you might be surprised.