Stop me if you think you've heard this one before
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Fannie Mae set to drop its 620 credit score minimum.
— Nightingale Associates (@FCNightingale) November 11, 2025
Mortgage giant will instead use its own analysis of risk factors.
Officials say they're easing barriers to borrowing.
"It's just the latest in a series of policy changes aimed at creating home ownership opportunities in the… pic.twitter.com/yvzcgr1YB1
This is what I found on the Fannie Mae site after further digging:
Minimum credit score requirements
Minimum credit score requirements will no longer apply to loans submitted to DU. The Selling Guide has been updated to align with changes previously communicated in the DU Version 12.0 November Update Release Notes. Specifically, DU will no longer apply a minimum credit score but will rely on its own comprehensive analysis of risk factors to determine eligibility. In addition to these revisions, we have updated DU nontraditional credit documentation and homebuyer education requirements to no longer rely on credit scores.
Instead, DU will issue a message when lenders must establish a nontraditional credit history and/or complete homebuyer education when no borrower has at least one credit account or installment account reported on their credit report.
Effective: The minimum representative credit score requirement of 620 for loan casefiles for one borrower and minimum average median credit score requirement of 620 for more than one borrower will be removed for new loan casefiles created on or after Nov. 16, 2025. All other changes apply to loan casefiles submitted or resubmitted on or after the weekend of Nov. 15, 2025.
Digging around further, I see that in some cases, the loan to value ratio can be dropped to 97/3. What could possibly go wrong?