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

Key Takeaways - Most conventional loans require a 620 minimum credit score - FHA loans accept scores as low as 580 with 3.5% down - A score above 740 typically unlocks the best available rates - You can improve your score significantly in 60 to 90 days with the right steps - Your score is one factor — lenders also look at income, debt, and down payment Your credit score is the first number every mortgage lender looks at. It signals how reliably you have paid back debt in the past, and lenders use it to determine whether to approve your loan and at what interest rate. Here is exactly what you need to know before you apply for a mortgage in Florida. The minimum scores by loan type Different loan programs have different credit requirements. The minimums below are industry guidelines; individual lenders can require higher scores. Conventional loans require a minimum score of 620. These are the loans most buyers use, and they are not backed by the federal government. With a score between 620 and 679, you will qualify, but your rate will be higher than a buyer in the 700s. Scores above 740 get the best pricing. FHA loans, backed by the Federal Housing Administration, accept scores as low as 580 with a 3.5% down payment. If your score is between 500 and 579, you may still qualify with a 10% down payment, though not all lenders will go that low. VA loans, available to eligible veterans and active-duty military, have no official minimum credit score set by the VA itself. However, most lenders require at least 580 to 620. If you served, talk to a loan officer before assuming you do not qualify. USDA loans, for homes in designated rural areas of Florida, typically require a 640 minimum score. Some rural pockets of Central and South Florida qualify, so it is worth checking. Why your score affects your rate, not just your approval At KP Funding, we see this play out on every loan. A buyer with a 760 score and a buyer with a 660 score applying for the same $350,000 loan in Florida can face a rate difference of 0.5 to 1 percentage point. On a 30-year loan, that gap is roughly $100 to $200 per month and tens of thousands of dollars over the life of the loan. How to improve your score before you apply Pay every bill on time for at least 60 days. Payment history is the single largest factor in your score, making up 35% of the calculation. Reduce your credit card balances. Credit utilization — how much of your available credit you are using — makes up 30% of your score. Getting your balances below 30% of each card's limit helps. Getting below 10% is even better. Do not open any new credit accounts. A new credit inquiry can drop your score by 5 to 10 points and signals to lenders that you are taking on new obligations. Do not close old accounts. Length of credit history matters. Keeping older cards open, even with zero balance, preserves that history. Dispute any errors on your credit report. You are entitled to a free credit report from each of the three bureaus — Equifax, Experian, and TransUnion — once per year at AnnualCreditReport.com. Errors are more common than you might expect. A successfully disputed error can move your score by 20 to 50 points. When to check your score Check your credit at least three to six months before you plan to apply for a mortgage. That gives you time to address any issues. If you are not sure where your score stands, KP Funding offers a free credit review as part of the pre-approval process. KP Funding Corporation | NMLS #2442789 | Equal Housing Lender | Licensed in Florida | Not a commitment to lend. Rates subject to change.