Big news just dropped for future homeowners! Fannie Mae recently announced a major change that could make it easier for more people to qualify for a mortgage. Starting November 16, 2025, Fannie Mae will remove its minimum credit score requirement from the automated system lenders use to evaluate loan applications.
That means the old credit score cutoff—often around 620—will no longer automatically disqualify borrowers. Instead, Fannie Mae’s updated system will look more closely at a person’s overall financial picture, not just their credit score number.
Why This Matters for Homebuyers
For many hopeful buyers, this is an encouraging change. If you’ve been working on improving your credit or have a limited credit history, this update could give you a new path toward homeownership.
Lenders will still review your financial profile carefully, but they’ll have more flexibility to consider factors beyond just your score. That could include things like your payment history, income stability, and debt levels—all of which can paint a fuller picture of your ability to manage a mortgage.
It’s important to note that removing the minimum score doesn’t mean everyone will qualify automatically. Each loan application will still go through Fannie Mae’s Desktop Underwriter system, which evaluates risk and eligibility in other ways. But it does mean that borrowers who might have been just below the old cutoff may now have a chance to be approved.
How This Could Impact the Housing Market
This change could open the door for more first-time buyers and those with nontraditional credit backgrounds to finally purchase a home. It might also encourage more competition among lenders to serve this group, which could create more flexible loan options.
In the long term, this could help more families build equity and stability through homeownership—especially in markets where affordability and access to financing have been major challenges.
To dive deeper into all the details of this change, check out the full story here:
👉 Read the HousingWire article on Fannie Mae’s credit score update.
