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

Credit Score Minimums by Loan Type

Your credit score is one of the most important factors in mortgage qualification and rate determination. Different loan types have different minimum requirements, and the rate you receive within each loan type also varies significantly based on your score.

Minimum Credit Score Requirements

• VA loan: No official minimum — most VA lenders require 620, some accept 580
• FHA loan: 580 for 3.5 percent down; 500 to 579 with 10 percent down
• Conventional conforming loan: 620 minimum — best rates typically require 740+
• Jumbo loan: Typically 700 minimum — best terms typically require 720 to 760+

How Your Score Affects Your Rate

The difference between a 680 and a 760 credit score can mean a rate difference of 0.5 to 1.0 percent on a conventional loan. On a $700,000 San Diego mortgage, that rate difference translates to approximately $230 to $460 per month — or $82,000 to $165,000 over 30 years. Improving your score before applying is one of the highest-ROI steps you can take.

What Affects Your Credit Score

• Payment history (35 percent of score): Every on-time payment helps; every late payment hurts
• Credit utilization (30 percent): Keep balances below 30 percent of your limit — ideally below 10 percent before applying
• Length of credit history (15 percent): Older accounts are generally better — do not close old accounts before applying
• New inquiries (10 percent): Minimize new credit applications in the 6 to 12 months before your mortgage application

Improving Your Score Before Applying

If your credit score needs work, address it 6 to 12 months before you plan to apply. Pay down credit card balances, dispute inaccurate negative items, make all payments on time, and avoid opening new accounts. Rieder Homes Group can refer you to lenders who offer credit counseling and score optimization guidance as part of their pre-approval process.

Related Reading on RiederHomes.com:

→ Blog #2: Mortgage Pre-Approval

→ Blog #3: Types of Home Loans

→ Blog #18: How to Improve Your Credit Score

→ Blog #1: How Much Can I Afford?

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556