Mortgage Credit Score Guidelines

Quick answer: One of the wholesale lenders I work with just dropped its own minimum credit score on many conventional, FHA, VA and USDA loans. If the loan gets an approval from automated underwriting, your score by itself may no longer be what stops you. Credit still matters, some loans still have score minimums, and approval isn't guaranteed. Residential home loans in Maine and Florida.

I used to be fast on 620 or better credit scores. Now that lane just got a lot wider. Many conventional, FHA in Maine, FHA in Florida, VA and USDA loans that get an approval from automated underwriting can now move on the same lightning fast timeline. My average from loan submission to clear to close is 12.4 business days.

Average of my loans submitted to my wholesale lender, from submission to clear to close. Not a guarantee. Individual timelines vary. Clear to close means underwriting is done. Closing is scheduled after that.

What changed on October 7, 2026?

One of the wholesale lenders I work with dropped its own minimum credit score on many agency loans. That covers conventional loans backed by Fannie Mae and Freddie Mac, plus FHA, VA and USDA. Instead of a score cutoff, the lender now relies on an approval from automated underwriting.

If you're weighing a VA or USDA loan, my pages on VA loans in Maine, VA loans in Florida and USDA loans in Maine cover the basics. The score change sits on top of those programs, not in place of them.

What does automated underwriting look at besides the score?

Automated underwriting is a computer review of the whole loan file. Your score is one input, and it's weighed alongside everything else. Here's the usual list:

Payment history. Whether credit cards, car loans and past housing payments were paid on time.
Debts. What you owe each month compared with your income.
Income. How steady it is and how it's documented.
Assets. Savings and other funds you'll have after closing.
Down payment. How much of your own money goes into the home.

A file with a clean recent payment record, steady income and money set aside can tell a fuller story than the score alone. That's the point of the change. The system still reads your credit closely, so credit still matters.

Which loans still have a score minimum?

Some loans keep a score minimum with this lender, even with an approval from automated underwriting:

Conventional loans that require mortgage insurance
Conventional Cash-Out 90
Conventional non-warrantable condos
Select down payment assistance programs
Certain specialty products

If your loan lands in one of these, I'll tell you up front. Then we'll look at whether another program fits your plans.

Turned down for your score before? It may be worth another look.

If a lender told you no because of the score alone, the answer may be different now. I'd start with fresh credit and a full run through automated underwriting. If it comes back with an approval, your score by itself may no longer be what stops you.

If it doesn't, I'll tell you plainly what held it back and what would help. Approval isn't guaranteed, and I won't pretend otherwise. But a no from last year isn't always a no today.

Does this apply to DSCR loans or HELOCs?

No. This change is for residential home loans in Maine and Florida: conventional, FHA, VA and USDA. It doesn't apply to DSCR loans or HELOCs, which keep their own credit rules.

What's the next step?

FAQ

Is there still a minimum credit score for a mortgage?

Travis Penny works with a wholesale lender that dropped its own minimum credit score on many conventional, FHA, VA and USDA home loans in Maine and Florida, relying on an approval from automated underwriting instead. Some loans still have score minimums, and credit still matters.

Which loans still need a minimum credit score?

For Maine and Florida home loans, Travis Penny's wholesale lender still applies score minimums to conventional loans with mortgage insurance, Conventional Cash-Out 90, conventional non-warrantable condos, select down payment assistance programs and certain specialty products.

Does the credit score change apply to DSCR loans or HELOCs?

No, the change Travis Penny describes applies only to residential conventional, FHA, VA and USDA loans in Maine and Florida, not to DSCR loans or HELOCs. Those keep their own credit rules.

Does an approval from automated underwriting guarantee my loan?

No, an approval from automated underwriting on a Maine or Florida home loan with Travis Penny is not a guarantee of final approval. The loan still goes through underwriting, and credit still matters.

Travis Penny, NMLS 1649161 | Vision Mortgage, NMLS 1286953. Equal Housing Opportunity. Subject to credit approval and underwriting. Programs and guidelines can change without notice.