Fannie Mae Throws Out Credit Score Requirement

If you’re looking to buy a home, especially in the Austin market, you’ve likely heard the headline: “Fannie Mae throws out credit score requirement.” That phrase isn’t just clickbait-this major update is real and it matters. I’m Robbie English, Broker and REALTOR at Uncommon Realty, and I’m here with my team to guide you through how this change works, what it really means for you, and how you can take advantage of it.

TLDR – Five Quick Points: Fannie Mae throws out credit score requirement

1. As of November 16, 2025, new loan case files submitted via the system of Fannie Mae will no longer face a minimum credit score requirement.
2. The long-standing 620 minimum representative or average median credit score rule is removed for those new case-files.
3. This change appears in Fannie’s November 2025 Selling Guide, which also includes updates on representation and warranty relief and age of credit document exceptions.
4. While access may widen, lenders and industry watchers express concerns about risk assessment and transparency under the new regime.
5. With decades of experience, I and my team at Uncommon Realty will help you navigate this shift: we understand nuance, timing and strategy in a changing landscape.

What Changed And Why It Matters

Let’s unpack the core update. The phrase “Fannie Mae throws out credit score requirement” captures a seismic shift: on November 5, 2025, Fannie Mae released its updated Selling Guide, detailing several changes.

Among those items is the removal of the minimum credit score requirement for loans submitted through its Desktop Underwriter (DU) system, effective for loan case files created on or after November 16, 2025.

Previously, the guideline required at least a 620 representative credit score (or average median credit score in multi-borrower situations) for loans processed via its Desktop Underwriter interface.

From that day forward, the threshold will shift: rather than the numeric 620 floor, underwriting decisions will lean more on risk-analysis in DU, rather than a set minimum.
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Why does this matter? Because if you’re a homebuyer who thought you couldn’t qualify because your credit score was under 620, this update changes the conversation. It also means that as your real estate advisor I’m Robbie English, Broker and REALTOR at Uncommon Realty and am uniquely positioned to help you evaluate your options and build the strongest possible profile, even as the rules shift.

How This Change Works In Practice

Until now, many lenders relied on simple thresholds: get your credit score to 620, your debt-to-income in check, your down payment in place, and you could be considered. With this update, the “how low” question still matters-but the “how well” matters even more.

Fannie Mae’s DU system automates a lot of decision-making. Before this update, DU would require that minimum score of 620 for certain loans. Now, beginning November 16, 2025, DU will no longer use that minimum as a gate. Instead it will rely on its automated analytics and broader risk signals with your file. That means your lender will still pull credit, verify income, check assets, evaluate property, review debt-to-income ratios-but the old rule “must be at least 620” has been removed for eligible case-files.

The update is specific to new loan case-files created on or after that date. Existing case-files submitted before that date remain under the old rules. Also, this is specific to DU underwriting. Manual underwriting, or non-DU loans may be subject to other guidelines. It’s critical to work with a broker who understands these details.

What Doesn’t Change

Even though the minimum credit score requirement is lifted for those case-files, a lot of other pieces of the puzzle remain. You’ll still need current documentation, stable income, sufficient assets, acceptable property, and other criteria required by Fannie Mae. Credit score remains one of many factors. The fact that the minimum 620 is gone doesn’t mean credit score doesn’t matter-it still does.

Why the change: Access, Inclusion and Risk

When you see a headline like “Fannie Mae throws out credit score requirement”, you’ll likely ask “why now?” and “what are the trade-offs?”

Access for more borrowers

One obvious goal is broader access. Removing the 620 barrier opens the path for buyers who may have struggled with that threshold-maybe they had a lower score, maybe they are rebuilding credit. DU will still evaluate them, but the numeric cut-off is gone. This could mean more opportunities for more people.

Including thin-file and alternative profiles

Industry experts have flagged that this move helps borrowers with thin credit files-people with limited traditional credit history but strong other indicators. For example one expert noted this opens opportunity for “borrowers with thin and no credit files.” So if your profile is non-traditional (perhaps you rent, perhaps you have nontraditional credit lines) you may now find more flexibility.

Concerns about risk and uniformity

On the flip side: removing the numeric threshold raises concerns about underwriting consistency, pricing, risk assessment and transparency. There are questions about how lenders will apply alternative trade lines, how securitized loan pools will perform, how uniform the criteria will be across lenders. As a real estate broker, I monitor how these changes affect our clients’ ability to get loans, not just in theory but in practice. The key is not just getting qualified-but getting qualified well.

What this means for you as a homebuyer

Now let’s look at how you can apply this change in your home-buying journey. Here’s how me and my team at Uncommon Realty guide clients through this new era.

Evaluate Your Credit Profile

Even though the minimum is gone, your credit still matters. It is truly important for you to sit down with one of my trusted professionals and look at your full credit profile-not just the score. Y’all can examine your payment history, utilization, accounts, any derogatory items. Y’all can also review how your score fits into the DU underwriting engine to identify areas you can strengthen before you submit a loan case-file.

Because the rule applies to case-files created on or after November 16, 2025, timing matters. If you’re actively house-hunting and expect to submit a loan soon, we’ll complete your loan pre-qualification with a lender who understands this new change, and ensure your file is structured properly. If you qualify now and want to move ahead under the old rules, that may still make sense-but if your profile is marginal under old rules, this new path may help.

Selecting A Lender Who Knows The New Guidelines

Lenders vary in how quickly and how aggressively they adopt new policy changes. Some will be ready on November 16. Others may lag, or may impose overlays (additional lender-specific rules) despite the removal of the 620 requirement. My team ensures you pair with lenders who understand the new guideline, and who are aligned with your goals. In many cases we’ll negotiate the best path forward between you and the lender based on your unique profile.

Leveraging My Experience And Strategic Mastery

With decades of experience I’ve seen guideline changes before-and guided agents and clients through them. I’m a national real estate speaker and instructor teaching many agents nationwide the ins-and-outs of real estate. That means when you choose me,  Robbie English, Broker and REALTOR at Uncommon Realty you get someone who has mastered real estate strategy for your benefit. I’ve worked hard so you won’t be reacting to change-you’ll be ahead of it.

Focusing Beyond The Score

One of the biggest mistakes I see is focusing solely on the credit score. Under the new regime that mistake is amplified. Your debt-to-income ratio, reserve assets, property type, loan-to-value ratio, documentation of income-all of these still matter. My team will coordinate all these pieces so you’re not just “making the new credit score rule” but you’re presenting the strongest possible loan case.

If you’re thinking of buying a home in the near term, this is the moment to act. Here’s how we’ll work together.

Step 1: Full-Scale Credit Review

Working with one of my highly trusted mortgage professionals, y’all will pull your credit reports from all three major bureaus. They will look for errors, payment gaps, high utilization, old collections with you and  run scenarios: if your score is below 620, what can we do? If you’re just above it, can y’all improve the file further? My referred mortgage professional will walk you through this in plain language.

Step 2: Income and Asset Documentation

We’ll gather your recent pay stubs, tax returns, bank statements, investment portfolios. For self-employed clients or nontraditional income, we’ll ensure the paperwork meets lender expectations. We’ll identify if special documentation strategies may apply.

Step 3: Loan Strategy Session

Together with a trusted lender, we’ll run a “pre-qualification” and carve out a strategy depending on your credit score, down payment, property type, purchase timeline. We’ll mark the date of November 16, 2025 on our calendar and make sure your loan case-file aligns with the new guidelines-or if submission before that date makes sense, we’ll craft for that as well.

Step 4: Property Search with Realistic Parameters

Armed with a clear budget and strong lender pre-approval, my team at Uncommon Realty will help you find homes that match your financial profile. We’ll evaluate location, condition, financing features, resale potential. We’ll aim for properties that give you room: cash reserves, closing cost wiggle-room, flexibility.

Step 5: Stay Transparent Throughout

My commitment to you is full transparency. I will explain how each piece of your file plays into underwriting. I will alert you of any lender overlays or policy caveats. I will make sure you know what you can control and what you can’t.

Why Team Up With Me and Uncommon Realty

Choosing the right agent matters now more than ever. With this new change where Fannie Mae throws out credit score requirement, the playing field shifts; you need someone who understands the shifting ground. Here’s why working with me gives you a competitive advantage.

I’ve spent decades mastering real estate. My experience spans helping buyers and sellers across numerous market cycles.

I am a national real estate speaker and instructor. That means I teach other agents across the country how to navigate transactions. You benefit from that advanced insight.

At Uncommon Realty my team and I provide expert guidance to our clients regarding their real estate pursuits. We don’t just show properties. We map strategy.

We stay ahead of underwriting changes, loan products, lender behavior and policy updates. This ensures you’re advised with clarity and confidence.

We handle the full process-not just the listing or the showing-but also coordinating with lenders, title companies, inspectors, and making sure your transaction closes smoothly.

Because I have worked strategically to master real estate for the betterment of my clients, you benefit not only from knowledge but also network: vetted lenders, attorneys, inspectors, contractors when needed.

During times of change like this one you gain an edge by working with someone who tracks risk, lenders’ reactions, and the impact of policy updates such as the elimination of the 620 minimum score rule.

Common questions and how we answer them

Will having a credit score below 620 guarantee I’ll be approved?

No. From what I understand, even though the numeric 620 minimum is removed for eligible case-files, each borrower’s file still must pass underwriting. The removal means you may be considered-but the lender and DU system still look at risk factors like credit behavior, income stability and assets. My team prepares you for success by improving the parts you can control.

Does this mean interest rates will go lower because the score minimum is gone?

Not necessarily. From what I understand, your interest rate depends on many variables: credit behavior, loan amount, down payment, property, debt-to-income, market conditions. The elimination of the 620 minimum doesn’t automatically reduce rates. It gives access. Rate outcomes still follow sound financial profiles.

If I submit the loan application before November 16, 2025, does the old rule apply?

Yes. From what I understand, the key date is when the loan case-file is created and submitted through DU under the new guideline. If you submit before that date you’re under the old minimum-score rule. My team helps you determine your best submission timing.

Does this policy change apply to all loan types?

No. This change from what I understand applies specifically to loans delivered to Fannie Mae through the DU system under the updated Selling Guide. Manual underwritten loans, special programs, or loans not destined for Fannie may have different criteria. We’ll advise you accordingly.

Does it mean I don’t need to worry about credit anymore?

Not at all. Your credit remains a key piece of your mortgage profile from what I understand. This update removes a numeric floor in certain cases but doesn’t remove the importance of responsible credit management. My team will help you optimize your credit, documentation and overall financial profile.

Preparing for your home purchase in Austin with this in mind

Being based in Austin, I see the market from a local lens. Here’s how we integrate the “Fannie Mae throws out credit score requirement” update into your Austin real estate strategy.

The date of case-file submission is critical. If you plan to shop now and want a smooth transaction under the old or new regime, we’ll map your timeline accordingly: search, select property, negotiate contract, coordinate with lender so that the loan package aligns with the changes.

Choose properties that strengthen your file

In a competitive market like Austin we still aim for homes with solid resale potential, good condition, and manageable financing risk. A loan review that shows a stable property with lower risk will play well, especially under the broader underwriting approach.

Use our lender network

My team and at Uncommon Realty has relationships with lenders who specialize in conventional loans and who are ready to apply the new guidelines thoughtfully. We’ll match you with a lender who understands the DU system, understands the removal of the 620 minimum and understands how to look at your full profile.

Leverage your strengths

Maybe your credit score is under 620 but your employment history is strong, you’ve got assets, you’ve got a rental history or savings. We’ll highlight those strengths. We’ll show lenders that you’re a responsible borrower. The elimination of the 620 floor gives us something to work with-and my team ensures we use it proactively.

Stay flexible and informed

Markets shift, policy changes ripple through. We’ll keep you informed of any lender-specific overlays or if lenders adopt additional caution because of this change. My experience teaching agents nationwide means I monitor how these changes play out in real time.

Next Steps

When you read “Fannie Mae throws out credit score requirement” you should feel both excitement and readiness. Excitement because this opens doors; readiness because you now must walk through one with intention and strategy.

If you’re ready to explore homeownership-whether you’ve had a credit bump in the past, you’re rebuilding, or you just want to make sure you’re taking every step to win-my team and I at Uncommon Realty are ready. I, Robbie English, Broker and REALTOR, bring decades of experience, national instruction, and strategic mastery to your benefit. I don’t just help you find a home-I help you win a home under the best possible terms in a changing environment.

Contact me today. Let’s schedule a confidential conversation about your credit profile, your goals, your timeline. Let’s map out a “qualified and confident” path to your home purchase. The rules have moved. You can too.

Thank you for reading. I look forward to helping you take advantage of this significant shift in the mortgage world. Remember: the change of “Fannie Mae throws out credit score requirement” is real-and with the right uncommon team behind you, it becomes your opportunity.