Your credit score affects more than approval. It sets the lowest down payment you can use on some loan programs, it shapes the rate a lender offers and it determines how much debt a lender will let you carry. Before you tour homes in Orlando, Osceola or Seminole County, learn the minimums for the loan you plan to use. Those minimums are different for FHA, VA and conventional loans, and this guide explains each one with the rule behind it.

I’m Tariq AbouAdma, a licensed Florida mortgage professional. The figures below come from HUD, the VA, Fannie Mae and federal lending rules. The sources are listed at the end.

What every lender looks at

Federal rules require a lender to consider and verify four things before it approves a mortgage. The lender must look at your income or assets, your employment status if it relies on your job income, your monthly debt-to-income ratio or residual income, and your credit history. Any income or asset figure the lender relies on must be verified with third-party records, such as pay stubs, W-2s, tax returns or bank statements (12 CFR 1026.43(c)(2) and (c)(4)).

Your credit score is a shortcut for part of that review. It is not the whole review. Two buyers with the same score can get different answers if one has a recent late payment or a collection and the other does not, because lenders weigh the history behind the number.

FHA loans: 580 for 3.5% down, 500 for 10% down

FHA sets the minimum score through the Minimum Decision Credit Score (MDCS). HUD’s Mortgagee Letter 2026-11, dated October 8, 2026, confirms the existing tiers:

• 580 and above: eligible for maximum financing. For an owner-occupied purchase, the maximum loan-to-value is 96.5%, which is the 3.5% minimum down payment.
• 500 to 579: the maximum loan-to-value drops to 90%, so the minimum down payment is 10%.
• Below 500: not eligible for FHA-insured financing.

Which score counts? When your three credit bureaus report different scores, the middle score is used. When only two differ, the lower one is used. On a loan with more than one borrower, the lowest qualifying score among the borrowers is the one that sets the tier. A stronger co-borrower does not lift a weaker score.

The same letter confirms that FHA still requires a tri-merge credit report, and that the 500, 580 and 620 thresholds stay in place as FHA adds newer scoring models (FICO 10T and VantageScore 4.0). The new methodology applies to case numbers assigned on or after January 1, 2027.

A score of 580 is the floor for the rule, not a guarantee. Individual lenders can set their own higher minimums, so ask for the lender’s written overlay before you make an offer.

FHA manual underwriting: ratios and compensating factors

When a lender manually underwrites an FHA loan, the baseline limit for the housing payment is 31% of income and total debts are capped at 43%. Higher ratios are allowed only with documented compensating factors. Under the same letter, stretch ratios of 37/47 need one factor such as verified cash reserves or a minimal increase in housing payment. Ratios of 40/50 need two. A file with a score below 580 cannot exceed the 90% loan-to-value tier, whatever the factors.

VA loans: no VA minimum, but lenders set one

VA does not set a minimum credit score. VA Pamphlet 26-7, the Lenders Handbook, says the lender must decide whether the borrower is a satisfactory credit risk based on a careful review of the credit report and other data. Late payments in the past 12 months generally require a written explanation. Collections and charge-offs do not automatically have to be paid off, but a steady repayment plan is viewed more favorably than a lump-sum payoff at application.

In practice, most lenders set their own floor. The VA Buyer’s Guide says lenders typically want a minimum of about 620 unless the down payment is large. Shop lenders by their overlay, not only by the VA rule.

VA also adds a residual income test. After taxes, the new mortgage payment and other debts are subtracted from gross income, what remains must meet the VA’s regional minimum for your family size. A borrower can clear the score and still be denied on residual income.

Conventional loans: Fannie Mae’s matrix

For conventional loans sold to Fannie Mae, the Eligibility Matrix sets loan-to-value limits by occupancy and loan purpose. For manually underwritten files, the matrix also sets the lowest score allowed for each debt-to-income and loan-to-value combination.

• The lowest score listed for a principal-residence purchase is 620. It applies to a fixed-rate loan at 75% loan-to-value or less, with a debt-to-income ratio at or under 36% and two months of reserves.
• Most other purchase rows start at 640 to 680. Higher loan-to-value or higher debt-to-income ratios push the minimum up.
• Cash-out refinances above 75% loan-to-value need about 660 to 680 or more, and cash-out on a second home or investment property has a lower maximum loan-to-value.

For loans approved through Fannie Mae’s Desktop Underwriter, the matrix sets the occupancy and loan-to-value limits, while the score needed comes from the automated decision and your lender’s own minimum.

Five things to do before you apply

1. Pull all three reports. Get free copies at annualcreditreport.com, check every account and dispute any error. Errors are the fastest fix.
2. Lower revolving balances before the statement date. Revolving balances are part of the debt picture lenders review.
3. Keep the payment history clean. A single late payment in the past 12 months can require a written explanation, especially on a VA file.
4. Hold off on new credit. A new card or car loan changes your ratio and can raise questions during the underwriting review. Ask your lender when it does its final credit check.
5. Gather the proof early. Pay stubs, W-2s, tax returns and bank statements are the third-party records the lender must verify, so having them ready shortens the file.

If you are also deciding how much debt you can carry, read our guide to debt-to-income ratio for a Florida mortgage. It shows how lenders calculate that ratio and where the limits come from. If you’re ready to get a formal approval letter, our explainer on pre-approval versus pre-qualification shows what each letter means to a seller.

If you are still building your buying plan, the first-time home buyer guide for Central Florida walks through the steps in order. FHA also requires the home itself to meet minimum property standards. If the house needs work, our note on which repairs qualify for an FHA 203(k) loan in Florida explains what can be financed.

Frequently asked questions

Can I get an FHA loan with a 550 credit score?

Not at the standard 3.5% down payment. HUD’s tiers require a 580 or higher for maximum financing. A score from 500 to 579 can qualify with a 10% down payment, and a score below 500 is not eligible for FHA-insured financing.

Does the VA have a minimum credit score?

No. VA does not set one. The lender sets its own minimum, which is often around 620. The lender must also review your residual income under VA rules.

What score does a conventional loan need?

Fannie Mae’s matrix lists 620 as the lowest score for some manually underwritten principal-residence purchases. Higher loan-to-value ratios or higher debt-to-income ratios require higher scores. Lenders can also set higher minimums.

Do all three credit scores count?

For FHA, the lender takes the middle score when three differ and the lower score when two differ. Most lenders use the same approach. Ask how your lender handles scores before you apply.

Sources

• HUD Mortgagee Letter 2026-11, Oct. 8, 2026: hud.gov (FHA alternative credit score methodology and MDCS tiers).
• VA Pamphlet 26-7, Lenders Handbook, Chapter 4 Credit Underwriting; VA Home Loan Guaranty Buyer’s Guide.
• Fannie Mae Eligibility Matrix: singlefamily.fanniemae.com.
• 12 CFR 1026.43, Minimum standards for transactions secured by a dwelling: ecfr.gov.

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