Minimum Credit Score Requirements
The following table describes the minimum credit score requirements and how to determine the loan-level credit score that applies to loan eligibility.
| Transaction Type | Minimum Credit Score |
|---|---|
| Manually underwritten loans |
The requirements are published in the Eligibility Matrix and are based on the credit score for the loan and the highest of the LTV, CLTV, or HCLTV ratios (as applicable); loan purpose; number of units; amortization type; and DTI ratio. To determine the credit score that applies for loan eligibility, use the following:
The minimum credit score that applies for loan eligibility is: 620 — fixed-rate loans 640 — ARMs |
| DU loan casefiles | DU will determine whether the minimum credit score is met using the following:
The minimum credit score that applies to eligibility of the loan casefiles is: 620 — fixed-rate loans and ARMs |
| Mortgage loans insured or guaranteed by a federal government agency (HUD, FHA, VA, and RD) | The minimum representative credit score is 620. |
| Loans delivered pursuant to any variance contained in the Lender Contract |
Manually underwritten loans: Higher of 620 representative credit score or average median credit score, as applicable, or the minimum representative credit score required by the variance. DU loan casefiles: Higher of 620 based on the score used by DU or the minimum representative score required by the variance. |
See B3-5.1-02, Determining the Credit Score for a Mortgage Loan for additional information.
Exceptions to the Minimum Credit Score Requirement
Certain transactions are not subject to the minimum credit score requirement, including:
- loans where no borrower has a credit score (see Section B3–5.4, Nontraditional Credit History);
- manually underwritten HomeReady mortgage loans that include a borrower with a low credit score (see B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements); and
- high LTV refinance loans, except for those loans underwritten using the Alternative Qualification Path.
For additional information, see B3-5.1-01, General Requirements for Credit Scores.