Mortgage Rates by Credit Score
How credit score tiers change conventional mortgage pricing, why FHA and VA are less score-sensitive, and practical ways to move into a better tier before you apply.
Conventional benchmark: Freddie Mac weekly survey
Week of August 20, 2026Source: Freddie Mac Primary Mortgage Market Survey via FRED, updated August 20, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing. This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
How Mortgage Rates by Credit Score pricing relates to this benchmark. The survey figure above reflects a top-tier credit profile. Agency loan-level price adjustments step the rate or cost up from there as credit score falls and as loan-to-value rises, which is why two borrowers can be quoted very different rates on the same day.
How Mortgage Rates by Credit Score are set
Credit score is the single largest borrower-specific driver of mortgage pricing on conventional loans. Fannie Mae and Freddie Mac price loans with a grid of loan-level price adjustments that combine credit score tiers (generally 620–639, 640–659, 660–679, 680–699, 700–719, 720–739, 740–759, 760–779 and 780+) with loan-to-value ratio bands. The adjustment is charged as a percentage of the loan amount and is usually converted into a higher rate. Moving from one tier to the next can change the rate by roughly an eighth to a quarter of a point in many combinations, and more at lower scores with less equity.
Lenders use the middle of three scores for each borrower and, when there are multiple borrowers, generally the smallest of the borrowers' middle scores (some conventional loans now average the borrowers' scores). This is why adding a co-borrower with a lower score can raise the rate even if it helps with income. The scores used are mortgage-specific FICO models, which can differ from the scores shown by consumer apps.
Government loans are far less score-sensitive. FHA and VA pricing has minimal adjustments for credit score, so a borrower at 640 may find that FHA or VA pricing is closer to the national average than conventional pricing would be. The trade-off is FHA mortgage insurance or the VA funding fee. For borrowers under about 700 with less than 20 percent down, comparing all three routes is essential.
Loan-to-value interacts with score. With 20 percent or more down and a 780-plus score, conventional adjustments are near zero. With 5 percent down and a 660 score, adjustments stack, and private mortgage insurance premiums, which are also score-tiered, rise as well. Lower scores therefore pay more twice: once through the rate and again through mortgage insurance.
Small changes can move a tier. Paying revolving balances down before the statement date, disputing errors, avoiding new accounts and keeping old accounts open are the typical levers. A rapid rescore through the lender can update the report within days once balances are paid. It is often worth asking a licensed originator what tier you are in and what a one-tier improvement would be worth before locking.
Rates shown could change or may not be available at commitment or closing.
Daily rate-lock index (OBMMI)
Updated daily by providerIndex data © Optimal Blue, LLC. Optimal Blue Mortgage Market Indices.
Source: Optimal Blue Mortgage Market Indices (OBMMI), updated August 26, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing.
Mortgage Rates by Credit Score: common questions
What credit score gets the best conventional rate?
Conventional pricing adjustments are smallest at 780 and above, with 740 to 779 close behind at most loan-to-value ratios.
Which score do lenders use?
The middle of the three bureau scores for each borrower, using mortgage-specific FICO models. With multiple borrowers, lenders generally use the smallest middle score, though some conventional loans now permit averaging.
Does a low score affect FHA rates much?
Far less than conventional. FHA pricing has very small score adjustments, which is why FHA is often the better rate for scores in the 600s despite the mortgage insurance.
How fast can I raise my score before applying?
Paying down card balances can register within one billing cycle, and lenders can request a rapid rescore in a few days. Larger issues such as collections or late payments take longer to improve.