Fannie Mae removes minimum credit score requirement for new home loan applicants starting November 2025.

Fannie Mae has announced a major policy change that could open the door to homeownership for millions of Americans.

Beginning November 16, 2025, the agency will remove the current 620 minimum credit score requirement from its Desktop Underwriter (DU) system, allowing more flexibility in how borrowers are evaluated for mortgage approval.

Instead of relying solely on credit scores, Fannie Mae will assess overall financial health through factors like rent payments, bill history, and other consistent payment behaviors— giving a fairer chance to buyers with limited credit history or those rebuilding their financial foundation.

This update is part of a broader effort to expand access to affordable housing and close the racial wealth gap, especially for Black and Brown families who have historically been denied loans due to traditional credit scoring systems.

Experts say the change could significantly increase homeownership opportunities and create new pathways to generational wealth for first-time buyers.