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A 754 credit score is considered excellent by most lenders. This high credit score opens up access to the best mortgage rates and loan terms. But what exactly does a 754 credit score get you when it comes to home loans? Let’s take a closer look.
What is a 754 Credit Score?
A 754 credit score is in the range that’s generally classified as “very good” or “excellent” credit Scores of 750 or above are excellent.
Credit scores range from 300 to 850. The higher the score, the lower the risk a borrower is viewed by lenders. A 754 credit score indicates the borrower has a strong credit history and is very likely to make on-time payments.
Some key facts about a 754 credit score:
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It’s near the top end of the credit score range, above 97% of Americans. Only about 3% of people have credit scores of 754 or higher.
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A 754 is classified as “excellent” by both FICO and VantageScore, the two most commonly used scoring models.
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People with scores in the excellent range tend to have long credit histories, low amounts of debt, and no negative marks like late payments, collections, or bankruptcies.
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Excellent credit scores qualify borrowers for the best loan terms, including low interest rates.
What Can a 754 Credit Score Get You for a Mortgage?
So when it comes to home loans, what kind of offers might you expect with a 754 credit score? Here are some of the mortgage benefits excellent credit can get you:
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Lower interest rates – The higher your credit score, the lower the interest rate lenders will offer. With a score of 754, you can expect to see rates near the lowest available. Even a small difference in rate can equal major interest savings over the life of the loan.
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Larger loan amounts – Excellent credit means you can qualify to borrow more. Lenders will be more confident lending you a higher percentage of a home’s value.
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Lower mortgage insurance costs – Borrowers with high credit scores pay less for mortgage insurance premiums on loans that require it. Excellent credit can save .25% to .50% on mortgage insurance rates.
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More flexible requirements – Top scores give you more leeway. Lenders may require less money down and have more relaxed debt-to-income requirements.
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Expanded loan options – 754 borrowers have access to a full range of mortgage products, from 15-year to 30-year fixed rates to ARMs with lower initial rates.
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Easier approval – There’s much less risk of credit denial with excellent credit. Approval odds are very high even for jumbo loans above conforming limits.
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Faster closing – Strong credit means fewer hurdles in underwriting. Excellent scores can potentially shave days or weeks off the mortgage process.
Typical 754 Credit Score Mortgage Rates
So what actual mortgage rates might you expect with a 754 credit score? Here are some examples of average 30-year fixed rate quotes for 754 borrowers:
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Purchase mortgage – Around 5.5% to 6% for a 30-year fixed-rate
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Refinance mortgage – Approximately 5.25% to 5.75% for a 30-year fixed-rate
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Jumbo mortgage – Roughly 5.625% to 6.125% for a 30-year fixed-rate
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FHA mortgage – Around 5.25% to 5.75% for a 30-year fixed, depending on down payment
Of course, market rates fluctuate daily based on economic factors. But relative to average borrowers, 754 applicants will see rates that are 0.375% to 0.75% lower.
Over a 30-year term, that can mean interest savings of tens of thousands of dollars over the life of the loan.
What Else Impacts Mortgage Rates Besides Your Credit Score?
While an excellent 754 credit score does put you in line for the lowest available mortgage rates, it’s not the only factor lenders consider. Here are some other key influences:
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Down payment amount – The more you put down, the lower the rate. 20% down lifts rates.
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Debt-to-income ratio – Your total monthly debt payments vs gross monthly income. Below 36% is best.
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Loan type – Government-backed loans like FHA and VA offer better rates than conventional loans, all else equal.
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Home location – Interest rates can vary between regions, states, and even neighborhoods.
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Market rates – The overall cost of borrowing impacts the rates lenders offer.
So shop around with multiple lenders to make sure you’re getting the very best rate for your situation. Preapproval also gives you an advantage in understanding the rate you can qualify for.
How Can I Raise My Credit Score From 754 to 800+?
If you already have excellent credit, is it worth trying to go even higher – say from 754 to over 800? The short answer is it likely won’t make a huge difference in the mortgage rates or offers you receive. Most lenders view scores above 740 or 750 as low-risk.
But if you want the satisfaction of perfection or bragging rights to an 800+ score, here are some tips:
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Lower credit utilization below 10% on all cards
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Pay balances off in full each month
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Limit hard inquiries by spacing out credit applications
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Avoid closing old credit accounts
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Review credit reports for errors to fix
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Set up automatic payments to prevent missed payments
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Become an authorized user on a spouse or family member’s old account
The Bottom Line – 754 Credit Score for Mortgages
A 754 credit score will qualify you for the top bracket mortgage rates and flexible loan options. While excellent credit doesn’t guarantee approval, it does mean you have very high odds of getting a mortgage with great terms.
Focus on other key factors lenders review like your income, assets, and debts. Shop multiple lenders and get prequalified to find the best mortgage products and rates for your situation.
While it’s tough to improve once you hit excellent credit, monitoring your credit scores can help you maintain your hard-earned 754 score. Be sure to check your credit reports regularly and watch out for any inaccuracies. Excellent credit is a valuable asset when it comes time to finance a home.
Credit score needed to buy a house by mortgage type
There’s no single, specific credit score that will automatically qualify you for a mortgage (though having the maximum score of 850 certainly never hurts). However, while lenders might not set precise qualifying numbers, they do have minimum credit score requirements.
The minimum credit score to be eligible for a mortgage depends on both the lender and the type of loan.
| Loan Type | Minimum Credit Score |
|---|---|
| Conventional loans | 620 |
| FHA loans | 500 (with 10% down payment); 580 (with 3.5% down payment) |
| USDA loans | 640 |
| VA loans | The VA has no minimum limit, but lenders generally like to see at least 620 |
| Jumbo loans | 700 |
- Conventional loans: Conventional loans are mortgages that aren’t offered or backed by a U.S. government agency; they’re offered by commercial banks and savings and loans associations. Generally, the higher your credit score, the more likely you’ll qualify for a mortgage loan with these lenders. Many will accept a credit score as low as 620, but they may have other requirements for those borrowers, such as a higher income or a larger down payment.
- FHA loans: The Federal Housing Administration insures loans geared toward borrowers with lower credit scores and down payments, especially first-time homebuyers. You could qualify for an FHA loan with a credit score of 500 to 579 with a 10 percent down payment, or with a 3.5 percent down payment if your score is 580 or higher.
- USDA loans: The U.S. Department of Agriculture guarantees this loan program for low- to moderate-income borrowers purchasing a home in a qualifying rural area. Borrowers generally need a minimum score of 640 to qualify for a USDA loan. In some cases, USDA lenders may consider a lower score with additional analysis of a borrower’s credit.
- VA loans: Guaranteed by the U.S. Department of Veterans Affairs, VA loans are offered to active and veteran military personnel and their families. The government doesn’t have a minimum credit score requirement to qualify for VA loans, though many lenders — who actually extend the financing — require a minimum score of 620.
- Jumbo loans: Jumbo loans are larger-than-normal-size mortgages; they exceed the conforming loan limits established by Freddie Mac and Fannie Mae — $766,550 in most markets, as of 2024. Many jumbo lenders require a credit score of 700 or higher to qualify because of the increased risk that comes with borrowing such a large amount.
How to improve your credit score to buy a house
Before you look at houses, it’s smart to check your credit score and pull your credit reports from the major credit agencies. Addressing credit issues early on can help you raise your score before you apply for a mortgage.
If your credit score isn’t great, there are still options. Instead of settling for the mortgage rates you currently qualify for, consider postponing homeownership and working to boost your credit score and improve your options. Here are some quick tips to help:
The Truth About VA Loans & Credit Scores (updated 2023)
FAQ
Can I buy a house with a 754 credit score?
What interest rate will I get with a 754 credit score?
What credit score is needed to buy a $400,000 house?
Is a credit score of 754 considered good?
What does a 754 credit score mean?
A 754 credit score is often considered very good — or even excellent. A very good or excellent credit score can mean you’re more likely to be approved for good offers and rates when it comes to mortgages, auto loans and credit cards with rewards and other perks. This is because a high credit score may indicate that you’re less risky to lend to.
Is a 754 FICO ® score good?
Your FICO ® Score falls within a range, from 740 to 799, that may be considered Very Good. A 754 FICO ® Score is above the average credit score. Borrowers with scores in the Very Good range typically qualify for lenders’ better interest rates and product offers. 25% of all consumers have FICO ® Scores in the Very Good range.
What is a good credit score to buy a house?
A favorable credit score to buy a house is typically in the high 600s and 700s. Anything higher than that is considered “exceptional”, and helps borrowers get the very best mortgage rates. Certain loan types even allow you to buy a house with a credit score as low as 500.
What is a qualifying credit score on a mortgage?
If there are two or more borrowers on a mortgage loan, the lowest median score among all clients on the mortgage is generally considered the qualifying credit score. The exception to this rule is for a conventional mortgage where multiple clients are backed by Fannie Mae.