Fannie Mae set to drop its 620 credit score minimum

quote:

---

Fannie Mae will remove its minimum 620 credit score requirement for loans submitted through its Desktop Underwriter (DU) system starting November 16, 2025. Instead of relying on a single score, the system will now use a more comprehensive credit risk assessment that includes a broader range of financial factors. This change is intended to make homeownership more accessible for borrowers who may not meet the previous score cutoff, though lenders can still set their own minimums.

Holistic risk evaluation: Borrowers will be evaluated on a wider range of factors, not just a credit score. The DU system will look at your entire credit report and other data to assess risk.

Increased eligibility: This change could open up mortgage options for people with a lower credit score who were previously denied, including those with limited credit history.

No guarantee of approval: This change does not guarantee approval for everyone. You will still need to meet other standard requirements for income, assets, and credit history, and individual lenders can still set their own minimum credit score requirements.

Credit scores are still requested: Lenders must still request credit scores from all borrowers, and the new policy does not eliminate the need for credit reporting

---