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

Minimum FICO by program

FHA Loan: 580 FICO with 3.5% down. 500-579 FICO requires 10% down. Most lenders, including Save Financial, accept down to 580.

Conventional Loan: 620 FICO minimum. Best pricing at 740+. Below 620, conventional is generally unavailable.

VA Loan: No federal minimum, but most lenders require 580-620. Save Financial's VA program goes to 580.

USDA Loan: 640 FICO preferred (streamlined underwriting); manual underwriting available for lower scores.

Jumbo Loan: 700 FICO minimum at most lenders; 720-740 preferred. Some specialty jumbo programs allow 680 with stronger compensating factors.

DSCR Investor Loan: 620 minimum. 680+ for best LTV (80%). Below 660 may cap LTV at 70-75%.

Bank Statement / Non-QM: 620 minimum. 700+ for best pricing.

ITIN Loan: No traditional FICO requirement on alternative-credit programs; 12 months of utility/rent payment history accepted.

HELOC/HELOAN: 680 FICO minimum; 720+ for best pricing.

Reverse Mortgage (HECM): No minimum FICO requirement, but lenders evaluate property tax and insurance payment history.

How credit score affects your rate (real numbers)

On a $500,000 California conventional mortgage at today's market levels:

- FICO 760+: 6.500% APR — $3,160/month P&I - FICO 740-759: 6.625% — $3,200/month P&I - FICO 720-739: 6.750% — $3,240/month P&I - FICO 700-719: 6.875% — $3,280/month P&I - FICO 680-699: 7.000% — $3,325/month P&I - FICO 660-679: 7.250% — $3,415/month P&I - FICO 640-659: 7.500% — $3,500/month P&I - FICO 620-639: 7.875% — $3,625/month P&I

Improving from 660 to 740 saves ~$215/month — that's $77,400 over 30 years. The math is even more dramatic on FHA loans, where lower credit scores also trigger higher mortgage insurance premiums.

How to improve your credit score in 30-90 days

Strategy 1: Pay revolving balances below 9% of credit limit. Credit utilization is 30% of your FICO score. Paying a $5,000 credit card down to under 9% utilization (under $450 balance on a $5,000 limit) can lift your score 30-60 points within one billing cycle. Save Financial routinely sees this in 30-45 days.

Strategy 2: Dispute inaccurate or stale items. Pull your free reports from annualcreditreport.com. Dispute any: collection accounts you don't recognize, accounts past the 7-year reporting limit, late payments that were actually on time, balance amounts that are wrong. Disputes resolve in 30 days. Even ONE successful dispute can lift FICO by 20-40 points.

Strategy 3: Become an authorized user on a family member's older credit account. If a parent or spouse has a 10+ year-old credit card in good standing with low utilization, being added as an authorized user can add that account's history to YOUR credit file, boosting average account age (15% of FICO) and overall score by 20-50 points.

Strategy 4: Pay collections strategically. If you have collection accounts, ask Save Financial first — paying some collections can actually hurt your score (resets the 'date of last activity'), while others (medical, older accounts) won't help. Only pay-for-delete agreements in writing are safe across the board.

Strategy 5: Stop applying for new credit. Each new credit inquiry drops your score 2-5 points temporarily. For 90 days before mortgage application, avoid all new credit cards, store cards, and auto loans.

The rapid rescore strategy

If you're under contract on a home but your FICO is a few points below your target threshold, Save Financial uses a 'rapid rescore' to refresh your credit file with the bureaus within 3-5 business days (vs. the normal 30-day cycle). This is critical when:

- You just paid down a credit card and need the updated balance reflected - A dispute was just resolved in your favor - An incorrect late payment was removed by a creditor - You closed an account you didn't realize was hurting you

Cost: typically $30-$50 per bureau per account. Save Financial often covers this when it'll save the borrower thousands on rate. Result: a FICO score that better reflects your current reality, often unlocking better pricing within days.

Should you wait to apply if your score is borderline?

It depends on the market and the gap. If you're at 695 and the next pricing bucket is 700, wait 30-60 days and improve your score — that 5-point lift is worth $5,000 – $15,000 in lifetime savings.

If you're at 695 and the next bucket is 720, the gap is larger. Don't necessarily wait — instead, apply now with the understanding that you may refinance in 12-18 months when your score is 720+. Mortgage rates that drop 25 bps below today's level can deliver a refi-savings event regardless of credit improvement.

If you're at 615 and need 620 conventional, definitely wait. The 5-point gap is achievable in 30 days with focused credit utilization optimization. Save Financial provides a free credit assessment with a personalized 60-day improvement plan — no obligation, no commitment.

Bottom line: in California's high-cost markets, every 20 FICO points is worth fighting for. We've seen borrowers improve from 670 to 750 in 90 days with focused work, saving them $50,000+ over the life of their loan.