Fannie Mae is removing its 620 minimum credit score requirement for loans submitted through its Desktop Underwriter (DU) system, effective November 16, 2025. Instead of relying on a minimum score, DU will use a comprehensive risk assessment that evaluates a broader set of factors from the borrower’s credit history, income, and debt levels. This change is intended to make it easier for more borrowers to qualify for a mortgage.
Effective Date: The change goes into effect for new loan case files created on or after November 16, 2025.
Methodology: Fannie Mae’s DU system will replace the credit score floor with its proprietary risk assessment models, which analyze a more holistic view of a borrower’s financial profile.
Reasoning: This change aims to expand access to homeownership by relying on a more comprehensive evaluation of credit risk rather than a single minimum score. It builds on the system’s existing ability to use trended credit data and other non-credit factors for risk assessment.
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