Texas Lone Star Lending Video
Fannie Mae Removes Minimum Credit Score Requirement
Fannie Mae has removed its minimum credit score requirement, but it probably won't lead to many more loan approvals.
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Read the transcript
This just in...a headline that sounds bigger than it really is.
Fannie Mae announced it’s removing its minimum 620 credit score requirement. Sounds dramatic, right? In reality, not so much. Even before this change, Desktop Underwriter already approved very few loans under about 640.
What this update does mean is that DU will now rely on the overall strength of the loan file — not a single cutoff number. So a buyer with limited credit and a few dings might squeak through if they’ve got strong compensating factors, like a good-sized down payment or really clean recent history.
So no, the floodgates of low-score approvals did not just open. They’re...still pretty shut.
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