What Homebuyers Should Know About Fannie Mae’s Removal of the Minimum Credit Score Requirement

Are you thinking about buying a home and wondering how the new Fannie Mae credit score change might affect your ability to qualify?

Fannie Mae is removing its long standing 620 minimum credit score requirement for loans run through Desktop Underwriter (DU) starting November 16, 2025. This gives buyers with lower scores more opportunity, although credit history still affects approval and loan terms.

What’s Changing

• The previous 620 minimum credit score requirement for DU loan casefiles is being removed for new applications created on or after November 16, 2025.
• Instead of using a single credit score cutoff, DU will now review your whole financial picture including credit history, income, debt levels, assets, and the specifics of the home you want to buy.
• Lenders may still have their own minimum score requirements, so approval is not guaranteed.

What This Means for You as a Homebuyer

• You may be eligible even if your credit score is below 620, as long as other parts of your financial profile are strong.
• The system gives more weight to responsible credit behavior over time, not just a single number.
• This update gives many first time buyers and returning buyers a chance to re explore homeownership.
• You may see more flexibility, but your pricing and loan options can still depend on your credit history.

How to Strengthen Your Chances of Approval

• Review your credit report and correct any errors before applying.
• Pay down revolving balances to improve your credit usage ratio.
• Maintain stable income and avoid taking on new debt during the mortgage process.
• Build savings for reserves, which can help strengthen your file.
• Work with a lender who understands the upcoming changes and can explain how they apply to your situation.

What to Expect During the Loan Process

• Your lender will still pull credit scores, even though the strict minimum is going away.
• You may qualify even with a score below past limits if your overall financial picture shows lower risk.
• In some situations, you may be asked for additional documentation, reserves, or a higher down payment.
• The goal is to give more buyers a fair chance, not to remove the importance of financial responsibility.

Why This Change Can Help New and Returning Buyers

• More borrowers can now be considered for conventional financing.
• You might qualify sooner than expected if your credit score has been the main barrier.
• This can help buyers who recently rebuilt credit after past challenges.
• It encourages a more personalized review of your financial readiness rather than relying on a single metric.

If you have been waiting to buy because of your credit score, this change may open the door for you. While the credit score minimum is being removed, responsible financial habits still matter. This update allows lenders to consider your full story and gives you a better chance to move forward.

If you want help understanding how this change impacts your buying options or if you are ready to explore homes in Parker County, I am here to guide you through every step.