Key takeaway620 is the agency minimum, conventional becomes possible, with the steepest LLPA tier (620–639) priced in.
What concretely changes at 620
- 620 is the agency minimum, conventional becomes possible, with the steepest LLPA tier (620–639) priced in.
- PMI at 620 is expensive: monthly MI on a 95% LTV loan can run multiples of what a 760 borrower pays. This is where FHA often still wins with low down payments.
- The math flips with down payment size: at 3–5% down FHA usually wins; near 10%+ down, conventional starts competing; at 20% down, PMI vanishes entirely.
- HomeReady/Home Possible (3% down) become available at 620, opening low-down conventional paths.
Requirements at this band
| Minimum score | 620 (agency floor) |
|---|---|
| Down payment | 3% HomeReady/Home Possible; 5% standard |
| PMI | Required under 80% LTV; pricey at 620 |
| LLPA tier | 620–639: steepest adjustments |
| DTI | Up to 50% with strong automated approval |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
Smart moves at 620
- Always get both FHA and conventional Loan Estimates at 620, the winner depends on down payment.
- PMI quotes vary by MI company; your lender should shop them.
- Twenty points to 640 moves you into a better LLPA tier, sometimes worth a short wait.
FAQ
How much is PMI with a 620 score?
It varies by MI company and LTV, but expect roughly 0.8–1.5%/yr at 95% LTV, several times the cost at high scores. Get the actual quote; rules of thumb mislead here.
Is HomeReady worth it at 620?
HomeReady/Home Possible allow 3% down with reduced MI compared to standard conventional, often the best conventional path at this band.
When does conventional beat FHA at 620?
Typically around 10%+ down, where conventional’s droppable PMI beats FHA’s lifetime MIP. Below that, FHA’s rate usually wins.