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.
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:
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.
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.
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.
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:
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.
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.
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:
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.
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:
Curious how this could affect your buying power? Connect with your local Churchill Mortgage expert and start planning your next steps!
Check our FAQs for responses to our most popular questions about Fannie Mae’s new credit score update.