THE NO JOB LIFESTYLEHow 680 compares with typical minimums
- FHA loans: program rules allow 3.5% down with a score of 580 or higher. Many lenders set their own higher floor.
- Conventional loans: many lenders look for about 620 or above, and pricing improves as scores climb.
- VA loans: the VA sets no official minimum for eligible borrowers, though many lenders look for about 620.
- USDA loans: many lenders look for about 640 for automated approval in eligible rural areas.
- Jumbo loans: these are lender specific and often require scores of 700 or higher, plus larger reserves.
A 680 falls in the good range on the FICO scale, which runs from 670 to 739. Lenders usually use mortgage specific FICO versions and take the middle of your three bureau scores. That number may differ from the score you see in an app, so do not be surprised by a gap.
What the score changes
The score mainly changes your price. On conventional loans, pricing adjustments and private mortgage insurance typically depend on your score and your down payment together. Someone at 680 with 5% down can expect to pay more each month than someone at 760 with the same loan. With 20% or more down, private mortgage insurance is generally not required.
FHA pricing is less sensitive to score, but it comes with its own mortgage insurance, which often lasts for the life of the loan unless you put down at least 10%. Comparing an FHA quote against a conventional quote at the same price is the only way to see which costs less for you.
What else lenders check
Your debt to income ratio matters a lot. Lenders compare your monthly debts, including the new payment, against your gross monthly income. Many conventional loans cap this near 45% to 50% with strong files, and limits vary. They also check two years of work history, your funds for the down payment and closing costs, and any recent late payments, which can hurt more than the score alone suggests.
Unresolved disputes on your report can slow things down too, because automated systems may not evaluate an account marked as disputed. Ask your loan officer before filing or closing out a dispute during the process.
Steps before you apply
Check all three reports at AnnualCreditReport.com and correct any errors months ahead if you can. Pay card balances down before the statement dates so lower figures are reported. Avoid opening new accounts, financing furniture or changing jobs during the process. Then request Loan Estimates from at least three lenders on the same day if possible. Mortgage inquiries in a short window generally count as one for scoring, so comparing does little harm, and the savings can be real.
Questions people ask
Is 680 enough for a first time buyer program?
Often yes. Many state housing agencies and lender programs accept scores at this level, but income limits and homebuyer classes may apply. Ask your state housing finance agency.
Should you wait to raise your score before buying?
Compare the monthly savings from a better tier against rising rents and prices. A lender can show how much a higher score would change your quote.
Do all lenders use the same score?
No. Most use a FICO mortgage version, but overlays and accepted versions differ between lenders, so a denial from one does not mean a denial from all.