In Nashville and the surrounding Middle Tennessee market, most FHA loans require a minimum credit score of 580 for the lowest down payment tier, while conventional loans typically start around 620. VA loans don't have a government-set minimum, though lenders commonly look for 580–620. Your score doesn't just determine whether you qualify — it directly affects the interest rate you're offered.
There are really two separate questions buyers are asking when they ask about credit scores: "what's the minimum to qualify," and "what score gets me a good rate." Both matter, and they're not the same number.
On the qualification side, FHA loans are generally the most forgiving — a 580 score keeps you eligible for the 3.5%-down tier, and some lenders will go lower with a larger down payment. Conventional loans typically want to see at least 620, though the specific overlay varies by lender. VA loans don't have a hard government minimum, but most lenders I work with are comfortable in the 580–620 range for eligible veterans and service members.
On the pricing side, credit score is one of the biggest levers on your rate. The Consumer Financial Protection Bureau's explainer on credit scores and mortgage rates lays out why lenders price risk this way: a lower score generally means a higher rate, because the lender is pricing in more risk of default. Two buyers with identical income and the identical Nashville home can end up with meaningfully different monthly payments purely because of a 60-point credit score gap.
If you're not sure what a credit score actually measures or how it's calculated, the CFPB's plain-language explanation of what a credit score is is a good starting point before you start pulling your own reports.
A real scenario: I regularly see Nashville buyers assume a 640 score disqualifies them from anything worthwhile. It doesn't — it usually still qualifies for FHA and many conventional programs, just potentially at a higher rate than a 760 score would get. What I do with buyers in that situation is show them the actual rate difference in dollars, and sometimes it makes sense to spend a few months improving the score before locking in a rate; other times, with Nashville's competitive market, it makes more sense to buy now and refinance later once the score improves.
