Fannie Mae to Drop Minimum Credit Score for Homebuyers cover art

Fannie Mae to Drop Minimum Credit Score for Homebuyers

Fannie Mae to Drop Minimum Credit Score for Homebuyers

Listen for free

View show details

About this listen

 The source announces a significant policy shift by Fannie Mae, effective November 16, 2025, eliminating the long-standing minimum credit score requirement of 620 for conventional mortgages processed through its Desktop Underwriter (DU) system. This change aims to broaden access to homeownership for millions of aspiring buyers, particularly those with strong financial profiles but blemished credit histories, by replacing the rigid score threshold with a holistic underwriting approach that evaluates factors like debt-to-income ratios and reserves. The move is presented as a response to the current housing affordability crisis and rising economic inequality, incorporating alternative data sources like utility and rent payments to assess risk more accurately. While proponents anticipate a boost to the sluggish housing market and reduced wealth gaps, the episode also examines potential risks, noting critics' concerns about encouraging overextension amid high consumer debt levels.
No reviews yet
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.