✳️ Big News for Home Buyers: Fannie Mae Just Removed the Minimum Credit Score Rule — Here’s What It Really Means

If you’ve been told you “can’t go conventional” because your credit score isn’t high enough — this is news worth knowing.

Fannie Mae (the agency behind many conventional loans) just made a big change:They’ve removed the old minimum 620 credit-score requirement for loans run through their automated system (called “Desktop Underwriter,” or DU).

So… what does that mean for you?

It doesn’t mean credit scores suddenly don’t matter — they still do.But it does mean your overall profile will now be looked at more holistically. Instead of just relying on a single number, Fannie Mae’s system will review things like:

• How consistently you’ve paid your bills

• How much debt you carry compared to your income

• Your rent payment history

• Your savings and reserves

• The type of property and loan you’re applying for

In other words: it’s less about “Do you hit 620?” and more about “Does your overall financial picture make sense?”

✅ The good news

If your score is below 620 — or you’re new to credit and don’t have much of a history — you may now be eligible for a conventional loan when you wouldn’t have been before.This opens doors for responsible buyers who’ve built solid habits but don’t have a long credit track record yet.

⚠️ But here’s the reality check

This isn’t a “free pass.”You’ll still need to show stability — consistent income, manageable debts, some savings, and a record of paying bills on time.

And while Fannie Mae has removed the hard score cutoff, individual lenders can still set their own internal minimums (known as “overlays”). So one lender might approve you, while another might not.

💡 What you should do next

If you’ve been on the fence about buying because of your credit score, now’s the time to get a fresh pre-approval.We can run your full file through the updated system and see if you qualify for conventional options that weren’t possible before.

Even if you’re still building credit, I’ll help you map out what to work on — so you’re in the best position when the right home comes along.

Bottom line:Fannie Mae’s update means more buyers can be considered for conventional loans.Your score is just one part of the story — and now, that story finally gets read cover to cover.