Fannie Mae Ends Credit Score Minimum
Fannie Mae is dropping its 620 minimum credit score rule, giving lenders more flexibility to assess borrower risk without changing core loan standards.
WASHINGTON — Beginning Nov. 16, Fannie Mae will no longer require its minimum credit score for borrowers, marking a significant shift in how its automated underwriting system determines eligibility.
The government-sponsored enterprise said it will drop its 620 minimum FICO score requirement for loans processed through its Desktop Underwriter (DU) system and instead use its own risk analysis to determine if a borrower qualifies.
“The DU risk assessment reflects a comprehensive evaluation of credit risk factors from the borrower’s credit report along with non-credit risk factors from the loan application,” Fannie Mae said.
Federal Housing Finance Agency Director Bill Pulte said the change gives lenders more flexibility in the types of scores that can be considered.
“Big deal for consumers. Small or nothing deal for underwriting,” Pulte said on X.
Fannie Mae also updated how its DU system handles borrowers with limited or no credit history. If a borrower has no reported credit or installment account, DU will flag the lender to document a nontraditional credit history and, if necessary, require homebuyer education.
Loans submitted or resubmitted starting the weekend of Nov. 15, 2025, will also be subject to the updated DU documentation rules.
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