Credit

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

Requirements by loan type, how score affects your rate, and the fastest ways to boost your score

Your credit score is one of the most important factors in getting a mortgage — it determines what loan programs you qualify for, what interest rate you get, and how much home you can afford. Here's exactly what you need to know for the San Diego market.

Credit Score Requirements by Loan Type

Loan TypeMinimum ScoreBest Rate ScoreDown Payment
VA LoanNo official minimum (most lenders: 580)680+0%
FHA Loan500 (10% down) / 580 (3.5% down)680+3.5%
Conventional620740+3–20%
Jumbo680–700740+10–20%

How Your Score Affects Your Interest Rate

The difference between a 620 and a 740 credit score on a $650,000 loan can mean $200–$400 more per month. Here's a rough example at 2025 rates:

620–639
Below Average
Qualifies for FHA/VA only. Rate ~7.75%. Monthly payment ~$4,650 on $650K.
640–679
Fair
Qualifies for most loans. Rate ~7.25%–7.5%. Monthly payment ~$4,430–$4,550 on $650K.
680–739
Good
Qualifies for all loan types. Rate ~6.875%–7.25%. Monthly payment ~$4,270–$4,430.
740+
Excellent
Best rates available. Rate ~6.5%–6.875%. Monthly payment ~$4,100–$4,270 on $650K.

How to Improve Your Credit Score Fast

1. Pay Down Credit Card Balances (Biggest Impact)

Your credit utilization (balance ÷ limit) should be under 30% — ideally under 10%. If you have a card at 80% utilization, paying it down can add 20–50 points within 30 days.

2. Don't Close Old Accounts

Closing credit cards reduces your available credit and hurts utilization. Keep old accounts open even if you don't use them.

3. Dispute Errors

Check your report at AnnualCreditReport.com. Errors are common — a disputed collection or incorrect late payment could be dragging your score by 50–100 points.

4. Don't Open New Credit

Every new credit application creates a hard inquiry. Avoid opening new cards, car loans, or any new credit for 6–12 months before applying for a mortgage.

5. Make All Payments On Time

Payment history is 35% of your score. Even one missed payment can drop your score by 60–90 points. Set up autopay for minimums on every account.

Rapid Rescore: If you pay down a balance or dispute an error, ask your lender about a "rapid rescore" — they can update your credit file in 3–5 business days rather than waiting for the next monthly cycle. This can be a game-changer before buying.

Not Sure Where Your Credit Stands?

We'll pull your credit as part of a free pre-approval and tell you exactly where you stand — and what it would take to get you into the best loan program possible.

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