Key takeawayAt 620, virtually every FHA lender’s overlay is satisfied, you get the full market competing for your loan instead of a short list.
What concretely changes at 620
- At 620, virtually every FHA lender’s overlay is satisfied, you get the full market competing for your loan instead of a short list.
- FHA terms themselves plateau here: the same 3.5% down and the same MIP as 580. The improvement is access and approval ease, not FHA pricing.
- This is the band where the real question becomes FHA vs. conventional: with 620+ and 5%+ down, conventional PMI can undercut FHA’s MIP, run both.
- Down payment assistance pairing gets easier; you are 20 points from the 640 DPA threshold.
Requirements at this band
| Minimum score | 620 (no meaningful overlays remain) |
|---|---|
| Down payment | 3.5% minimum |
| Upfront MIP | 1.75% |
| Annual MIP | ~0.55%/yr |
| DTI | Up to ~56.9% with 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
- At 620, always price conventional alongside FHA, the crossover point is real.
- If buying with 3.5% down, FHA usually still wins; with 10%+ down, compare carefully.
- Twenty more points to 640 unlocks Hometown Heroes and Georgia Dream.
FAQ
Is FHA or conventional better with a 620 score?
With 3–5% down, FHA usually wins on rate. With 10%+ down, conventional’s PMI (which drops off at 80% LTV) often beats FHA’s lifetime MIP. Compare both Loan Estimates.
Does my score affect FHA mortgage insurance?
No, FHA MIP is the same at every score. That is a key difference from conventional PMI, which is score-sensitive.
Can I drop FHA MIP later?
On most 30-year FHA loans with less than 10% down, MIP lasts the life of the loan. The exit is refinancing into conventional once you have 20% equity.