Lenders use credit tiers to determine the risk of a borrower. As of 2026, the general tiers are:
The ideal range where interest rates plateau; further increases typically do not yield significantly better savings. best credit score to buy a home
In late 2025, major mortgage entities Fannie Mae and Freddie Mac removed strict minimum score floors for some systems, moving toward a more holistic risk assessment. However, most individual lenders still maintain internal minimums: Average Mortgage Rates by Credit Score - Experian Lenders use credit tiers to determine the risk of a borrower