Untitled
- Unknown
- Nov 7
- 2 min read
Starting November 16, 2025, Fannie Mae will remove the minimum 620 credit score requirement for loans submitted through its Desktop Underwriter (DU) system.
Fannie Mae will remove its minimum 620 credit score requirement for loans processed through the Desktop Underwriter (DU) system starting November 16, 2025. Instead of relying on a fixed credit score, the DU system will review a broader range of risk factors to determine eligibility.
Lenders will still need to pull credit scores and evaluate each borrower’s overall credit profile. This update doesn’t change existing underwriting standards—it simply shifts how risk is measured.
Key points:
Effective date: Applies to new loan case files created on or after November 16, 2025.
Expanded review: DU will assess multiple credit risk factors, including credit history, debt levels, income, and property details, rather than just a minimum score.
Lender duties: Lenders must continue to request all borrower credit scores and conduct their own credit evaluations following Fannie Mae’s selling guide.
https://www.nationalmortgagenews.com/news/fannie-mae-changes-language-in-underwriting-guide-update
Credit models: The FHFA will allow lenders to use either Classic FICO or VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac.
Expected impact: This update could make homeownership more accessible, particularly for borrowers with limited or nontraditional credit histories, and may open the door for more first-time buyers.
The latest DU Version 12.0 release notes and Selling Guide update mark a significant change in how Fannie Mae evaluates mortgage eligibility. This move could open the door for more borrowers with lower credit scores but strong overall financial profiles.
Rather than using a fixed 620 minimum credit score, the Desktop Underwriter (DU) system will now review a wider range of credit risk factors—such as a borrower’s credit history, income, debt, property details, and loan purpose.
“The DU risk assessment provides a comprehensive look at credit risk, combining information from the borrower’s credit report with other factors from the loan application,” Fannie Mae explained.
Beginning November 16, 2025, new loan casefiles will no longer require a minimum representative credit score. Instead, they’ll be subject to a credit risk standard based on DU’s internal evaluation of those factors.
This change follows Freddie Mac’s earlier decision to remove its own minimum credit score for loan approvals. Still, Fannie Mae noted that lenders must continue to obtain credit scores for all borrowers, as required for loan sales, and that some loan programs or private mortgage insurers may maintain their own score thresholds.
The update also enhances Fannie Mae’s Day 1 Certainty program, which gives lenders protection from certain enforcement actions tied to undisclosed non-mortgage debts.
Additionally, documentation and homebuyer education requirements for borrowers without traditional credit will apply only if none of the borrowers on a loan has at least one credit or installment account reported.
These updates arrive as the mortgage industry continues to debate how much weight credit scores should carry in evaluating borrower risk. Even as Fannie Mae and Freddie Mac shift toward broader, data-driven assessments, credit scores will remain part of the process for pricing and regulatory compliance.
Stay informed with the latest mortgage updates.
Comments