How to Improve Your Credit for a Mortgage in 2026

Most people start thinking about their credit the week they want to make an offer. By then the most useful changes are already out of reach, because a credit score reflects months of history, not days. The buyers I see get the best terms usually started working on their credit six months to a year before they called a lender. They did not do anything clever. They simply knew which parts of the score move quickly, which parts move slowly, and which common habits quietly work against them.

Credit also matters more than many people assume once a lender says yes. In mortgage lending, your score does not only decide whether you are approved. It shapes the rate you are offered, what mortgage insurance costs on a smaller down payment, and how much room an underwriter gives you on everything else in the file. On Westchester price points, where loan amounts are large, a modest difference in pricing turns into real money every month for as long as you keep the loan.

The rules have also changed more in the last eighteen months than in the previous decade. This guide reflects how mortgage credit works as of late 2026.

What credit score do you need to buy a house in 2026?

There is no single number, and the honest answer depends on the loan program.

Conventional loans (Fannie Mae and Freddie Mac). For years, 620 was treated as the floor for a conventional mortgage. That changed for loans run through Fannie Mae's automated underwriting system, Desktop Underwriter. In its Selling Guide announcement SEL-2025-09, Fannie Mae removed the 620 minimum credit score for new loan casefiles created on or after November 16, 2025. Desktop Underwriter now weighs credit alongside the rest of the borrower's profile instead of applying a fixed cutoff. Fannie Mae's current credit score requirements still set a minimum of 620 for fixed-rate loans and 640 for adjustable-rate loans when a file is underwritten manually.

That does not mean a low score is now irrelevant. Individual lenders can and often do set their own minimums, and a lower score still means higher pricing and more expensive mortgage insurance. What it does mean is that a score just under 620 is no longer an automatic stop on a conventional loan, and it is worth a real conversation before you assume you need FHA.

FHA loans. FHA is often the most forgiving program on credit. Under HUD's Single Family Housing Policy Handbook 4000.1, a borrower with a score of 580 or higher can qualify for maximum financing, which is a 3.5 percent down payment. Borrowers with scores from 500 to 579 are limited to 90 percent financing, so they need at least 10 percent down. Scores below 500 are not eligible. The old version of this article mentioned the 500 figure without the 10 percent down payment that comes with it, and that detail matters a great deal to a buyer planning their savings. Many lenders also apply their own higher minimum on FHA loans. I explain the program in more depth in FHA loans explained.

VA loans. The Department of Veterans Affairs does not publish a minimum credit score. Its eligibility page says borrowers must meet credit, income and occupancy requirements from both the VA and the lender, which means the score floor you run into comes from the lender. My complete guide to VA home loans covers the rest of the program.

Jumbo loans. Westchester has many purchases above the conforming loan limit, and jumbo loans are not bound by Fannie Mae or FHA rules. Each jumbo lender sets its own credit, reserve and down payment standards, and they are usually stricter than conforming standards. If you expect to need a jumbo loan, give your credit the most lead time of all.

Which credit score will a mortgage lender actually use?

This is the part of the process most consumers never see, and it explains why the score on your banking app rarely matches the one your lender pulls.

The score in a free app is often a VantageScore 3.0 or a FICO 8 from one bureau. Mortgage lenders have traditionally used older FICO versions, often called Classic FICO, pulled from all three bureaus: Equifax, Experian and TransUnion. The lender then takes your middle score of the three. When two people apply together, the program rules decide which of their scores is used, and on many loans the lower borrower's score carries the most weight.

The Federal Housing Finance Agency has now added a second option for loans sold to Fannie Mae and Freddie Mac. According to FHFA's credit score policy page, lenders may choose either Classic FICO or VantageScore 4.0 for each loan, as long as the same model is used for every borrower on that loan. On September 9, 2026, the agencies opened VantageScore 4.0 to all approved lenders. A newer model, FICO 10T, has been approved but is not yet eligible for delivery.

Why this matters to you: different models treat some items differently, including how they handle paid collections and how much history they consider. A borrower could score meaningfully higher under one model than the other. You cannot pick the model yourself, but you can ask your loan officer which one they use and whether it makes a difference in your case.

How is a credit score calculated?

FICO publishes the broad weights behind its scores on its consumer education page. Payment history counts for about 35 percent. Amounts owed, which is mostly how much of your available credit you are using, counts for about 30 percent. Length of credit history is about 15 percent. New credit and credit mix are about 10 percent each.

Two lessons come out of those numbers. First, paying on time and keeping balances low together account for roughly two thirds of the score, so that is where your effort should go. Second, the factors that move fastest are the balances you carry, because most card issuers report a new balance every month. Late payments and the age of your accounts change slowly no matter what you do.

The 6 steps that actually improve your credit for a mortgage

1. Get all three credit reports and read them line by line

Start with the reports, not the score. Under federal law you can get your reports for free, and the FTC confirms on its free credit reports page that all three bureaus have permanently extended free weekly access through AnnualCreditReport.com. That is the official site. Other sites with similar names often try to sell a subscription.

Pull all three, because each bureau can hold different information. Look for accounts you do not recognize, late payments you believe were on time, balances that are wrong, accounts listed as open that you closed, and old negative items that should have aged off. Under the Fair Credit Reporting Act, most negative information can be reported for seven years and most bankruptcies for ten.

If something is wrong, dispute it directly with the bureau that shows it, in writing, with copies of your proof. The bureau generally has to investigate within 30 days. Keep records of everything you send. Accurate negative information cannot be removed just because you ask, and anyone who promises to erase accurate late payments or collections for a fee is promising something the law does not allow.

One timing caution: if you are already in the middle of a mortgage application, talk to your loan officer before filing a dispute. An open dispute on an account can hold up automated underwriting until it is resolved.

2. Make every payment on time from today forward

Payment history is the largest single factor, and a single new 30-day late payment in the year before you apply can do more damage than almost anything else on this list. Underwriters also read recent history more closely than old history. A late payment four years ago, followed by a clean record, tells a very different story from one four months ago.

Set every account to automatic payment for at least the minimum due, then pay more by hand when you can. That one step removes the most common reason good borrowers end up with a blemish: a busy month and a forgotten bill. If you have already missed a payment, bring the account current as quickly as possible. Lates are usually reported once a payment is 30 days past due, so catching a mistake inside that window can keep it off your report entirely.

3. Bring your credit card balances down, and time it well

Utilization is the share of your available revolving credit that you are using, measured both on each card and across all your cards. FICO does not publish a perfect number, but lower is better, and borrowers with the strongest scores typically use only a small fraction of their limits. Many advisors use 30 percent as an upper guide and under 10 percent as a goal before a mortgage application.

Because issuers usually report the balance on your statement date, not your payment due date, paying a card down a few days before the statement closes can lower the reported balance even if you pay in full every month. This is one of the few things that can lift a score within a single billing cycle.

If you have savings, think carefully before draining them to pay off cards. You will still need money for your down payment, closing costs and reserves, and in New York closing costs can be significant. The right balance between paying down debt and keeping cash is a question to work through with a loan officer, because it depends on what your specific loan requires. I go through the cash side of buying in how to think about mortgage affordability in 2026.

4. Leave your accounts alone in the months before you apply

People often try to tidy up their credit by closing old cards. That usually backfires. Closing a card reduces your total available credit, which can raise your utilization, and over time it can shorten the average age of your accounts.

Opening new accounts carries its own costs. Each application for credit can create a hard inquiry, and a new account lowers the average age of your history. Underwriters also ask about recent inquiries and new accounts, because a new car loan or store card can change your monthly debt after the lender has already run the numbers.

The simplest rule is to keep your credit picture steady from the time you start preparing until after you close. Do not open new cards, finance furniture, co-sign for anyone, or close long-standing accounts without asking your loan officer first.

5. Shop for your mortgage inside a short window

Some buyers avoid comparing lenders because they worry that every credit check will lower their score. The scoring models were built to allow rate shopping. According to myFICO's guide to credit inquiries, older FICO versions treat multiple mortgage inquiries within any 14-day span as a single inquiry, newer versions use a 45-day span, and FICO ignores mortgage inquiries made in the 30 days before a score is calculated.

To stay safe under every version, do your serious lender comparisons within about two weeks. Inquiries stay on your report for two years, but FICO only counts those from the last twelve months.

6. Understand your debt-to-income ratio, not just your score

Credit and debt are judged together. Your debt-to-income ratio, or DTI, is your total monthly debt payments, including the new housing payment, divided by your gross monthly income. The CFPB explains the calculation in its guide to what a debt-to-income ratio is.

The earlier version of this article described 43 percent as the standard limit. That number came from the original federal Qualified Mortgage rule. The CFPB's 2021 General QM amendments replaced the hard 43 percent cap with a test based on loan pricing, and compliance has been mandatory for applications received on or after October 1, 2022, as noted in the official text of Regulation Z section 1026.43. Today the ratio a lender will accept depends on the loan program, the automated underwriting result and the strength of the rest of your file, and automated systems can approve ratios above 43 percent when the rest of the file is strong. A lower ratio still helps you, both in approval and in how comfortable your payment feels after you move in.

The practical point for credit is this: paying down a card lowers both your utilization and your minimum monthly payment, so it can help your score and your DTI at the same time. Paying off a small installment loan can help DTI but does little for your score, and sometimes lowers it slightly, because a closed account no longer adds to your active history. Which move is better depends on where your file is weakest.

What not to do while you are working on your credit

A few habits cost Westchester buyers more often than anything else on their report.

Do not pay a company to "repair" your credit with promises to remove accurate information. You can dispute errors yourself for free, and the law does not let anyone erase accurate negative history early.

Do not pay off an old collection account without asking your loan officer first. Depending on the scoring model, the age of the account and the loan program, paying it may help, may make no difference to the score, or may simply be required at closing. A loan officer can tell you which applies to you before you spend the money.

Do not move large sums between accounts or deposit cash you cannot document. That is not a credit issue, but it causes as many delays as credit problems do, and underwriters will ask about it.

Do not assume the score in your app is the score your lender will see. Use it to watch the direction of travel, and get a real mortgage credit review when you are within a few months of buying.

How long does it take to improve a credit score for a mortgage?

It depends on what is holding the score down. Lowering high card balances can show up within one or two billing cycles, once the new balances are reported. Correcting a genuine error can take a month or more, because the bureau has to investigate and update the file. Recovering from recent late payments, a collection or a charge-off is a matter of time and a steady record, usually many months.

That is why I encourage people to talk with a loan officer six to twelve months before they want to buy, even if they are not ready to apply. A short review of your reports can show which items matter for the loan you want and which do not, so you spend your effort and money in the right place. If you are close to the line, some lenders can also order a rapid rescore after you pay down a balance or correct an error. That service is ordered by the lender, not the borrower, and it only updates information that has actually changed.

Why credit deserves extra attention in Westchester

Three things about our market make credit more important here than in many parts of the country.

First, loan amounts are large. Any pricing difference tied to your score is multiplied across a bigger balance, so the monthly difference between a good score and a strong one can be larger here than the national examples you see online.

Second, many Westchester buyers purchase co-ops. Co-op boards review a buyer's finances as part of their approval process and can set their own standards, separate from the lender's. A strong credit report helps with both. My guide to condo and co-op mortgages in Westchester explains how that process works.

Third, buyers above the conforming loan limit need jumbo financing, where each lender sets its own credit rules and those rules are usually stricter. If you are shopping in that range, preparing your credit early is not optional.

Frequently asked questions

What is the minimum credit score for a mortgage in 2026?

It depends on the program. Fannie Mae removed its 620 minimum for loans approved through Desktop Underwriter as of November 16, 2025, though 620 still applies to manually underwritten fixed-rate loans and lenders may set their own minimums. FHA allows scores as low as 500 with at least 10 percent down, or 580 and above with 3.5 percent down. The VA does not set a minimum score, so the lender's standard applies.

Can I get an FHA loan with a 500 credit score?

Under HUD rules, yes, but only with at least 10 percent down, because scores from 500 to 579 are limited to 90 percent financing. A score of 580 or higher qualifies for the 3.5 percent minimum down payment. Many lenders set a higher FHA minimum than HUD does, so ask before you apply.

Do mortgage lenders still use FICO scores?

Yes. For loans sold to Fannie Mae and Freddie Mac, lenders can now choose either Classic FICO or VantageScore 4.0 for each loan, under FHFA's current policy. FHA, VA and jumbo lenders follow their own program rules, and Classic FICO is still widely used.

Will shopping for a mortgage hurt my credit score?

Very little, if you keep it to a short window. FICO counts multiple mortgage inquiries within 14 days as one inquiry under older score versions and within 45 days under newer ones. Comparing lenders inside two weeks keeps you covered either way.

Is a 43 percent debt-to-income ratio still the limit?

Not as a fixed federal rule. The CFPB's 2021 General QM amendments replaced the 43 percent cap with a pricing-based test, mandatory since October 1, 2022. Each loan program and automated underwriting system now decides what ratio it will accept, and a strong file can qualify above 43 percent.

Should I close credit cards before applying for a mortgage?

Usually not. Closing a card reduces your available credit, which can raise your utilization and lower your score, and it can shorten your average account age over time. Keep accounts open and steady until after closing unless your loan officer advises otherwise.

The bottom line

Improving your credit for a mortgage is less about tricks and more about timing. Get your reports early, fix real errors, pay on time, bring balances down before the statement date, keep your accounts steady, and shop for your loan inside a short window. Then let a loan officer look at the actual mortgage scores and the loan you want, because the right next step depends on your file, not on a general rule.

If you are planning to buy in Westchester in the next year, the best time to start is now. My complete guide to getting a mortgage walks through what comes after the credit review, and you can contact me for a no-pressure look at where you stand.

About the author

Biagio Maffettone is a Vice President of Sales and licensed mortgage loan originator (NMLS# 409994) at Meadowbrook Financial Mortgage Bankers Corp. (NMLS# 177308) in Purchase, NY. He has more than 20 years of experience in residential and commercial lending and helps first-time buyers, families, investors and business owners finance property throughout Westchester County. He is a recognized 14 times Five Star Mortgage Professional since 2013 and is the author of The First to Rise. Learn more on his about page.