Fannie Mae Expands Access to Homeownership: Credit Score Minimum Removed Starting November 16, 2025

Big news for homebuyers!  

Fannie Mae has announced a groundbreaking change that could help more Americans qualify for homeownership. Beginning November 16, 2025, Fannie Mae will remove the long-standing minimum 620 credit score requirement for loans submitted through its Desktop Underwriter (DU) system. 

 A More Complete View of Borrowers

 Instead of relying solely on a fixed credit score cutoff, the DU system will now take a more holistic approach — evaluating applicants based on their overall financial profile.

That includes: 

• Full credit history
• Income stability
• Debt-to-income ratio
• Rent payment history
• Cash reserves and savings habits

 This shift means that even buyers whose credit scores fall just below the 620 mark could still qualify if other financial indicators are strong.

 Why This Matters

 For years, the 620 threshold has been a barrier for many otherwise qualified buyers — particularly younger buyers, first-time buyers, or those rebuilding credit. By moving away from a rigid credit score rule, Fannie Mae is empowering lenders to: 

• Assess risk more accurately and fairly
• Recognize the strength of consistent income or responsible rent payment history
• Help more deserving borrowers enter the housing market

 A Step Toward Greater Housing Accessibility

 This policy update represents one of the most significant shifts in mortgage underwriting in years. It reflects a growing understanding that a single number doesn’t define a person’s financial responsibility or potential to sustain homeownership.

 With this change, more families, individuals, and first-time homebuyers will have the opportunity to achieve the dream of owning a home — a win for both consumers and communities nationwide.

 Bottom line:

Fannie Mae’s updated policy is a major step toward a more inclusive mortgage system — one that looks at the whole borrower, not just a number on a credit report.

 If you’ve been turned down in the past due to a “near-miss” credit score, this may be the perfect time to take another look at your homebuying options.

  Contact me today to discuss what this means for your buying power!