Qualifying
Credit score
A number, typically 300–850, summarizing your credit risk. It sets which loan programs you qualify for and heavily influences your interest rate.
What does credit score mean?
Your credit score is one of the biggest levers on your mortgage. In Michigan the practical tiers are:
- 580: opens FHA at 3.5% down
- 620: opens conventional loans
- 640: the floor for MSHDA down payment assistance
- 680, 700, 740: pricing improves at each tier
Even after you qualify, a few more points can be worth real money on the payment. If you're close to a threshold, paying revolving balances below 30% utilization and making every payment on time is usually the fastest, cheapest way to move up before applying.
A Michigan example
Two buyers apply for the same $256,500 loan on the median home. The one at 740 lands better pricing than the one at 660, and over a 30-year term even a small rate gap compounds into thousands — for identical houses financed the same day.
Related terms