> ## Documentation Index
> Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit Score Requirements

> Understanding minimum credit scores and how your score affects self-employed mortgage program terms

Credit score requirements for self-employed mortgage programs are generally higher than conventional loans. Because these loans carry more risk for lenders, your credit score significantly impacts approval odds, interest rates, and available terms.

## Minimum Score Requirements

Most lenders offering self-employed mortgages require a minimum credit score between 620 and 700, depending on the program:

| Credit Score | Typical Availability                          |
| ------------ | --------------------------------------------- |
| 720+         | Best rates and terms, lowest down payments    |
| 700-719      | Competitive rates, standard terms             |
| 680-699      | Moderate rate adjustments                     |
| 660-679      | Higher rates, may require larger down payment |
| 620-659      | Limited lenders, significant rate premium     |
| Below 620    | Few options available                         |

Some lenders advertise minimums as low as 600, but expect substantial tradeoffs in rate and terms.

## How Credit Score Affects Pricing

Lenders offering self-employed mortgages use rate adjustments based on credit tiers. A borrower with a 740 score might pay 0.5% to 1.5% less than someone with a 660 score on the same loan.

**Example impact on a \$500,000 loan:**

| Credit Score | Approximate Rate | Monthly Payment |
| ------------ | ---------------- | --------------- |
| 740          | 7.00%            | \$3,327         |
| 700          | 7.50%            | \$3,496         |
| 660          | 8.25%            | \$3,752         |

Over 30 years, the difference between 740 and 660 scores costs over \$150,000 in additional interest.

## Credit Score and Down Payment

Lower credit scores often trigger higher down payment requirements:

| Credit Score | Typical Minimum Down Payment |
| ------------ | ---------------------------- |
| 720+         | 10%                          |
| 680-719      | 15%                          |
| 660-679      | 20%                          |
| Below 660    | 25%+                         |

A strong down payment can sometimes offset a lower credit score.

## Which Score Do Lenders Use?

Lenders pull credit from all three bureaus (Equifax, Experian, TransUnion) and typically use the middle score. If you're applying with a co-borrower, they use the lower of the two middle scores.

## Improving Your Position

If your credit score is borderline, consider:

* Paying down credit card balances to reduce utilization
* Correcting any errors on your credit report
* Waiting to apply until a negative item ages off
* Increasing your down payment to offset the lower score

A few points can make the difference between approval and denial, or save thousands in interest over the loan term.

Asset depletion programs typically require a minimum credit score of 680 or higher, as the income qualification method is considered higher risk by most lenders.