Fannie Mae’s New Credit Score Update: What Home Buyers Need to Know

Starting November 16, 2025, Fannie Mae will no longer require a minimum credit score for loans run through Desktop Underwriter® (DU®). This change was announced in its latest Selling Guide update (SEL-2025-09).

It’s a major shift designed to make qualifying for a mortgage easier and more accessible. Here’s what’s changing and why it matters.

Key Takeaways

• Fannie Mae will no longer require a minimum credit score for DU® loans starting November 16, 2025, which could help more buyers qualify.
• DU® will now look at your overall financial picture, including things like income stability and rent or utility payments, giving buyers with limited credit history a fairer evaluation.
• FHFA confirmed this isn’t a loosening of standards but a modernization effort that should reduce last-minute delays and make the mortgage process more predictable.
  
  

What Fannie Mae’s Update Means for Home Buyers

Instead of relying mostly on a single credit score, Desktop Underwriter® (DU®) will now look at your overall financial picture. This gives more flexibility to people who may not use credit cards often or have several trade lines but still manage their money responsibly.

DU will now consider things like:

• How steady your income is
• Your overall debt history
• Whether you pay rent, utilities, or other bills on time
• Good financial habits, even if you don’t have many traditional credit accounts

This is especially helpful if you have a “thin” credit file — meaning you don’t have a long credit history but you’re still consistent and reliable with your bills.  In short, DU is doing a better job of recognizing real-life financial responsibility, not just traditional credit usage.

FHFA Clears Up What This Change Really Means

Since this update got a lot of attention, Federal Housing Finance Agency (FHFA) Director Bill Pulte addressed the update online to offer some clarity:

“Our underwriting standards are the same. As a process matter, to ensure two scores can be used and not just one, we eliminated requirement for FICO in the infamous ‘guide’. Big deal for consumers. Small or nothing deal for underwriting.”

Basically, this doesn’t mean lending rules are getting looser. It just means lenders will eventually be able to use more than one type of credit score, which could help lower borrower costs as credit score fees have climbed in recent years.  This change also reduces unnecessary re-verifications and last-minute loan delays, making the mortgage process more predictable and less stressful.

How This Helps Borrowers with Thin or No Credit

A lot of people manage their money responsibly without using much traditional credit. Maybe you pay rent on time, stay current on utilities, or prefer debit over credit cards. In the past, those habits didn’t always help when applying for a mortgage.

With this update, DU can better recognize real-life financial patterns. If you’ve shown consistent, reliable payment behavior (even without multiple credit accounts) you may now have a clearer path to qualifying.

How This Helps Borrowers Building a Home

If you’re building a home, there’s more good news. Fannie Mae expanded eligibility for single-closing construction-to-permanent loans, which let you finance the construction and long-term mortgage in one process.

Here’s what changed:

• Your credit documents can now be up to 18 months old at the time your loan converts to permanent financing
• The minimum credit score requirement for this exception has been removed

Construction often takes longer than expected due to weather, materials, or builder schedules. These updates mean less scrambling to refresh documents and a smoother move into your final mortgage.

What Fannie Mae’s eMortgage Change Means

Fannie Mae is also expanding who can use eMortgages, which are fully digital mortgage documents and closings. Now, even homes owned through a common estate-planning tool — like a revocable living trust — can use them.  This means more buyers can take advantage of quicker, secure digital closings instead of piles of paperwork and in-person signatures.

Why These Updates Are Happening Now

These changes are part of a bigger push to make the mortgage process easier, faster, and fairer for today’s buyers.

The industry has been calling for improvements that:

• Modernize the mortgage process
• Look beyond traditional credit
• Reduce extra costs and delays
• Expand access to homeownership responsibly

Some lenders still want more guidance on how nontraditional credit will be reviewed, and Fannie Mae is expected to share additional details before everything goes into effect.

How Churchill Mortgage Helps You Navigate These Changes

Guideline updates like these can feel overwhelming, but you don’t have to figure them out alone. At Churchill Mortgage, we’ve been helping buyers without traditional credit for years, long before this announcement.

Whether you’re building your credit, starting a new construction project, or getting ready to buy your first home, our team can help you:

• Understand how these updates fit into your personal situation
• Explore your loan options with confidence
• Build a home financing plan that supports your long-term goals
  
  

Curious how this could affect your buying power? Connect with your local Churchill Mortgage expert and start planning your next steps!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions about Fannie Mae’s new credit score update.

What does it mean that Fannie Mae is removing the minimum credit score for DU loans?

It means that starting November 16, 2025, Fannie Mae will no longer require a specific minimum credit score for Desktop Underwriter® (DU®) loans. Instead, DU will look at your full financial picture, including rent, utilities, income stability, and overall payment behavior.

Can I qualify for a mortgage with no credit score under Fannie Mae’s new rules?

Possibly, yes. If you don’t have a traditional credit score but show strong payment history — such as paying rent and utilities on time — DU may approve you based on your overall financial profile.

Do I still need good credit to buy a house if DU® doesn’t require a score?

You still need to show responsible financial behavior. DU checks your income stability, debt history, and payment patterns. But you no longer need a specific score (like 620) to be considered.

How will the no-credit-score DU update affect mortgage rates?

Rates will still be based on overall risk, but borrowers with no score may see more fair evaluations since DU reviews a wider range of financial factors instead of relying solely on credit scores.

Can I get a construction-to-permanent loan under the new Fannie Mae guidelines if I have no credit score?

Yes, the updated rules allow more flexibility for construction-to-permanent loans, including removing the minimum credit score requirement for the extended document age exception.

Does Churchill Mortgage offer loans for buyers without a credit score?

Yes — Churchill has long offered no-score mortgage options, which means our loan officers are already trained and experienced in helping buyers without traditional credit history. This update simply aligns the industry with what Churchill has already been doing.