By Eric Yoder
If you’ve been putting off buying your first home in Tampa because you think your credit score isn’t good enough, you’re not alone. Fannie Mae found that roughly one in three Americans either don’t know or significantly overestimate the minimum credit score needed to qualify for a mortgage. That gap between perception and reality keeps thousands of Florida renters on the sidelines every year, even when they’d qualify today.
Here’s the good news: the credit requirements for a mortgage are far more forgiving than most people think. Let’s break down five of the most common credit myths so you can stop second-guessing and start planning.
1. You Need an 800 Credit Score to Buy a Home
This is the big one. Your credit score is a three-digit number (ranging from 300 to 850) that reflects how reliably you’ve managed debt. The higher your score, the better your interest rate will be. However, you don’t need anything close to 800 to get approved.
FHA loans may accept scores as low as 580 with a 3.5 percent down payment. VA loans, available to eligible veterans and service members, have no government-mandated minimum score. As of November 5, 2025, Fannie Mae removed its longstanding 620 minimum for conventional loans processed through its Desktop Underwriter system, shifting to a more holistic review of the borrower’s full financial picture.
The bottom line: if your score is in the low-to-mid 600s, you may have more options than you realize.
2. Shopping Around for Rates Will Tank Your Score
Many buyers stick with the first lender they talk to because they’re afraid that each credit pull will do serious damage to their credit. That fear is overblown.
FICO’s scoring models are designed to encourage rate shopping. All mortgage inquiries made within a 14-to-45-day window (depending on the scoring version) count as a single inquiry on your report. Even outside that window, one hard inquiry typically costs fewer than five points, and will disappear from your score within 12 months. The Consumer Financial Protection Bureau (CFPB) confirms that multiple mortgage credit checks within a 45-day period are counted as a single inquiry.
And checking your own credit? That’s a soft inquiry. Zero impact. You should be doing it regularly through AnnualCreditReport.com.
3. Closing Old Credit Cards Will Help My Score
This one sounds logical, but usually backfires. Closing a credit card reduces your total available credit, which raises your credit utilization ratio: the percentage of your available credit you’re currently using. Utilization is the second-biggest factor in your FICO score, accounting for about 30 percent.
Say you carry $5,000 in balances across cards with $15,000 in total limits. That’s 33 percent utilization. Close a card with a $5,000 limit, and your utilization jumps to 50 percent, causing your score to drop right when you need it most. FICO’s own guidance is direct: keep unused credit cards open.
4. Paying Off Old Collections Will Instantly Boost My Score
This is where it gets tricky. Under the Classic FICO models still used by most mortgage lenders (FICO 2, 4, and 5), a paid collection and an unpaid collection are weighted almost the same. Paying off an old debt is the right thing to do, but don’t expect an immediate score jump from the older models.
The good news is that newer scoring models, such as FICO 9 and 10, ignore paid collections entirely. Luckily for consumers, the mortgage industry is actively transitioning to these models. Another bonus: all three major credit bureaus (Equifax, Experian, and TransUnion) have removed medical collections under $500 from credit reports, wiping out roughly 70 percent of medical collection tradelines nationwide.
Talk to your loan originator before paying off collections, right before applying. The timing and strategy matter more than the impulse.
For first-time homebuyers in Tampa, Eric Yoder is an excellent resource who can walk you through your options and help you build a credit strategy that fits your financial goals.
5. Carrying a Small Balance Helps Your Credit
Very simply: carrying a balance does not benefit your score and can actually hurt it by increasing your utilization.
What matters is that you use your credit card and also pay it on time. Paying your statement balance in full every month is the best move for both your credit score and your wallet. If you want to see a quick improvement before applying for a mortgage, pay your balances down before the statement closing date. Those balances are the ones that get reported to the bureaus, not the ones on your due date.
Conclusion
The gap between what Tampa Bay homebuyers believe they need and what lenders actually require is enormous. If you’ve got a credit score in the 600s, stable income, and a willingness to explore your options, you could be much closer to owning a home than you think. The most expensive credit myth isn’t any one of these; it’s the belief that the system is harder to navigate than it actually is.
Whether you are a first-time buyer or looking to refinance, My Easy Mortgage, a reputable mortgage broker located at 2405 Creel Lane, STE 102, Wesley Chapel, FL 33544, and 16703 Early Riser Ave, Suite 266, Land O’Lakes, FL 34638, has a team of experienced professionals who can guide you through the process. Contact them at (813) 513-9846 to discuss your mortgage needs.