Six-twenty. It's not a bad credit score. It's not a great one either. It sits in that uncomfortable middle ground where some lenders lean in and others quietly close the door — and if you're trying to buy a home in Phoenix right now, you need to know exactly which side of that line you're standing on.
The short answer is yes. A 620 credit score gets you into the Phoenix housing market. But the longer answer — the one that actually helps you — is about which loan products open up at 620, which ones still require more, what the real cost difference looks like, and what Phoenix-specific programs exist to make the numbers work in your favor.
Let's go through all of it.
620 Is a Real Threshold — and Here's Why Lenders Treat It That Way
Credit scores don't exist in a vacuum. Lenders use them to predict risk — specifically, the statistical likelihood that a borrower defaults on their loan. At 620, something meaningful shifts in how lenders categorize you.
Below 620, conventional mortgage lenders — the ones offering standard 30-year fixed loans without government backing — largely won't approve you. Their risk models flag anything under 620 as outside acceptable parameters for standard loan products. That doesn't mean you can't get a mortgage below 620 (FHA loans go as low as 500 with a 10% down payment), but it does mean the conventional market effectively closes at that number.
At 620, the conventional market reopens. Fannie Mae and Freddie Mac, the two government-sponsored enterprises that purchase most conventional mortgages from lenders, both set 620 as their published minimum. When Fannie and Freddie buy loans, lenders get their capital back and can make more loans. That's why their minimums effectively become the industry floor.
So hitting 620 isn't arbitrary. It's the score that tells conventional lenders you've crossed into territory their secondary market will accept. In Phoenix's current housing landscape — where median home prices have landed around $400,000 — that access matters enormously.
What a 620 Score Actually Gets You in Phoenix: Loan by Loan
Not all mortgages treat a 620 score the same way. Here's how each major loan type responds to your number:
Conventional Loans
You qualify. But you qualify at the bottom of the conventional range, which means lenders apply risk-based pricing adjustments — called loan-level price adjustments (LLPAs) — that raise your effective interest rate. At 620 versus 740, the rate difference can run between 0.5% and 1.5% depending on your down payment size and loan amount. On a $380,000 Phoenix home loan, a 1% rate difference adds roughly $228 to your monthly payment and over $82,000 in total interest across 30 years.
You also pay PMI if you put less than 20% down. At 620, PMI rates run higher than they would at 700 or 740 — typically between 1.0% and 1.5% of your loan balance annually. The good news: PMI on a conventional loan cancels once you reach 20% equity. You're not paying it forever.
FHA Loans
At 620, you're well above the FHA's minimum of 580 for a 3.5% down payment. FHA loans tend to offer lower interest rates than conventional loans for borrowers with scores below 680, because the government guarantee reduces lender risk regardless of your credit profile. If you're at 620, an FHA loan might actually cost you less per month than a conventional loan — even after accounting for FHA's mortgage insurance premium.
The trade-off is that FHA mortgage insurance doesn't cancel the same way PMI does. If you put less than 10% down, MIP stays for the life of the loan. For buyers who plan to stay in their Phoenix home long-term, that's a meaningful cost. For buyers who plan to refinance once their score improves or their equity grows, it's manageable.
VA Loans
If you're a veteran or active-duty service member, a 620 score with a VA loan is genuinely excellent news. The VA sets no minimum credit score — individual lenders do — and most VA-approved lenders in Phoenix accept 580 to 620 as their floor. VA loans require zero down payment, no PMI of any kind, and typically carry lower interest rates than both FHA and conventional products. A 620 score with VA eligibility is arguably the strongest position a Phoenix buyer in this score range can occupy.
USDA Loans
Maricopa County's suburban fringes — parts of Queen Creek, Buckeye, and unincorporated areas further out — qualify for USDA rural development loans. USDA loans require no down payment and accept credit scores starting around 580 to 640 depending on the lender. If your target neighborhood falls in an eligible zone, this is worth investigating seriously.
The Phoenix Market Reality for a 620-Score Buyer
Phoenix has been one of the most volatile housing markets in the country over the past five years. Prices surged dramatically during 2021 and 2022, cooled in 2023, and have since stabilized at levels that still put median home prices well above pre-pandemic norms in most desirable ZIP codes.
For a buyer at 620, the challenge isn't just credit — it's the combination of elevated home prices, higher mortgage rates, and the cost premiums that come with a mid-range credit score. A $400,000 home in Tempe, Chandler, or Scottsdale looks different depending on your financing.
With a conventional loan at 620 and 5% down ($20,000), your loan amount is $380,000. At a 7.5% interest rate — realistic for a 620-score conventional borrower in the current environment — your monthly principal and interest comes to approximately $2,659. Add PMI at 1.2% annually ($380 per month) and your payment climbs to roughly $3,039 before taxes and insurance.
With an FHA loan at 620 and 3.5% down ($14,000), your loan amount is $386,000. FHA rates for 620-score borrowers often run 0.25% to 0.5% lower than conventional — call it 7.25%. Monthly principal and interest: approximately $2,634. Add FHA MIP at 0.85% annually ($274 per month) and you're at roughly $2,908 before taxes and insurance.
In this scenario, the FHA loan saves this Phoenix buyer about $130 per month at 620 — and requires $6,000 less upfront. That math changes as your score improves, but at exactly 620, FHA often wins the monthly payment comparison.
Phoenix and Arizona Programs That Help 620-Score Buyers Bridge the Gap
Arizona has a strong infrastructure for first-time and low-to-moderate-income buyers. A 620 credit score qualifies for several of these programs, and stacking them with an FHA or conventional loan can meaningfully change what you can afford.
Home Plus Arizona is the state's flagship down payment assistance program, administered through the Arizona Department of Housing. It provides 3% to 5% of the loan amount as a grant — not a loan you repay — toward down payment and closing costs. Home Plus works with FHA, VA, USDA, and conventional loans and accepts credit scores as low as 640 for most conventional loan options (some FHA pairings accept 580). At 640, the grant alone covers the entire 3.5% FHA down payment on homes up to roughly $450,000.
If you're sitting at 620 today, a 20-point improvement gets you into the Home Plus program with full down payment coverage. That's worth targeting before you apply.
Maricopa County HOME Program provides down payment and closing cost assistance specifically for buyers in unincorporated Maricopa County areas — which covers significant portions of the greater Phoenix metro outside city limits. Income limits apply, and buyers must complete a homebuyer education course.
City of Phoenix Homebuyer Assistance Program offers up to $15,000 in down payment and closing cost assistance for buyers purchasing within Phoenix city limits. The program targets buyers at or below 80% of the area median income and requires a minimum credit score of 640 for most participating lenders. Again — 20 points from where you are.
Arizona HFA Preferred connects buyers to below-market mortgage rates through participating lenders, stacked with optional down payment assistance. The program accepts conventional and FHA loans and sets a minimum credit score of 640 for most products.
The pattern across these programs is consistent: 640 unlocks the most robust Arizona assistance. If your score is 620, the single most impactful financial move you can make before buying in Phoenix is getting that number to 640.
How 20 Points Changes Everything: Getting from 620 to 640
The distance between 620 and 640 looks small. Financially, it's significant — it opens Home Plus, City of Phoenix assistance, Arizona HFA Preferred, and improved conventional rate pricing all at once.
The fastest reliable way to add 20 points starts with your credit utilization ratio. This single factor drives 30% of your FICO score calculation. If you carry any revolving credit card balances, getting them below 30% of your available limit — and ideally below 10% — can produce a 20 to 40 point improvement within one or two billing cycles. Pay the balance down, wait for the statement to close, and let the updated utilization report to the bureaus.
Second, pull all three of your credit reports at AnnualCreditReport.com and look for errors. Incorrect collection accounts, duplicate negative entries, or outdated derogatory marks are more common than most people realize. Under the Fair Credit Reporting Act, you can dispute inaccuracies in writing and bureaus must investigate within 30 days. A single removed collection account can add 20 to 50 points depending on the account's age and balance.
Third, don't open any new credit accounts or make any large purchases on credit in the 90 days before your mortgage application. New inquiries temporarily lower your score, and lenders flag recent credit activity as a risk signal during underwriting.
If you work with a mortgage lender who offers rapid rescoring — a service that expedites updated credit information to the bureaus — improvements from debt paydowns or dispute resolutions can reflect in your score within days rather than weeks, potentially before you lock your rate.
The Honest Conversation About 620 in Phoenix Right Now
There's something worth saying plainly about buying in Phoenix with a 620 credit score in today's environment: it's doable, but it costs more than it should. Higher rates, PMI or MIP, and reduced access to down payment assistance programs all stack on top of each other at this score level.
That's not a reason not to buy. Phoenix homeownership builds equity, and renters in the metro have watched their costs climb sharply over the past several years with nothing to show for it. Owning at 620, even at a slightly higher rate, locks in a payment and begins building wealth.
But it is a reason to be deliberate. If buying in 90 days versus 6 months means the difference between a 620 score and a 650 score, the 6-month path might save you $100 to $200 per month for the entire life of the loan. Run those numbers honestly before you decide how fast to move.
Work with a HUD-approved housing counselor — the Arizona Department of Housing maintains a list of approved agencies throughout the metro — before you commit to a lender. Get quotes from at least three Phoenix mortgage lenders. Ask each one to show you the side-by-side cost of FHA versus conventional at your exact score, with and without down payment assistance programs.
The Phoenix market rewards buyers who show up prepared. A 620 credit score gets you in the door. What you do with the information in this guide determines whether you walk through it at the best possible terms.
This article provides general financial information and does not constitute professional financial or legal advice. Work with a licensed mortgage professional or HUD-approved housing counselor for personalized guidance based on your financial situation.