Mortgage Credit Score Requirements in Arkansas

Minimum credit scores by program, how lender overlays raise the practical floor, and what to do if your score is below it.

Program minimums

• USDA Guaranteed — no published minimum from USDA itself; most lenders impose 640 overlay.
• VA — VA sets no minimum; most lenders overlay at 580-620.
• FHA — 580 for 3.5% down, 500-579 for 10% down. Most lenders overlay to 620-640.
• Conventional — 620 minimum per agency rules. Best pricing at 740+.

Overlays explained

An overlay is a stricter credit rule a lender imposes on top of the program’s official minimum. This is why “FHA says 500” but “my lender says 620” — both are true.

What to do if your score is below

Paying down revolving credit to under 30% utilization is the fastest legitimate score move — often 20-40 points in a single cycle. Don’t close old credit cards. Don’t open new accounts within 6 months of applying.