As of November 16, 2025, Fannie Mae's Desktop Underwriter system will evaluate credit risk holistically — opening opportunities for buyers who didn't meet traditional credit cutoffs.
Holistic Assessment
More Opportunities
Fair Evaluation
Here's what you need to know about Fannie Mae's groundbreaking underwriting update
Minimum 620 credit score required for most conventional loans
No minimum credit score — comprehensive evaluation
As of November 16, 2025, Fannie Mae's Desktop Underwriter (DU) system will no longer enforce a hard minimum 620 credit score for loan applications. Instead, DU now uses a sophisticated proprietary credit risk model that evaluates your complete financial profile.
This means DU looks at the holistic picture — your income stability, payment history, credit behaviors, and overall financial responsibility — not just a three-digit credit score. This opens doors for qualified buyers who were previously excluded by arbitrary cutoffs.
Effective Date
Nov 16, 2025
System
Desktop Underwriter (DU)
Authority
Fannie Mae Policy
This historic change opens the door to homeownership for thousands of qualified buyers who were previously held back by rigid credit requirements
If you've had credit challenges in the past — maybe a late payment, a medical bill that went to collections, or you're rebuilding after a financial setback — this rule change is a game-changer.
You now have access to conventional loans that were previously out of reach. DU will evaluate your full financial story, not just focus on past credit mistakes.
Young adults, recent graduates, immigrants building credit, or anyone with limited credit history (a "thin file") can now be evaluated by DU's holistic system.
Even if you don't have extensive credit card history, DU may approve your loan using nontraditional credit data like rent payments, utility bills, and other payment histories.
Been paying rent on time for years but don't carry credit card debt or have a low score? Your responsible payment behavior now counts.
DU's new model recognizes that on-time rent and utility payments demonstrate financial responsibility — even without traditional credit accounts building your FICO score.
If you have no credit accounts and therefore no credit score, DU won't automatically reject your application. Instead, it will trigger a request for nontraditional credit documentation.
This means your loan officer can work with you to document alternative payment histories that prove your creditworthiness. You're not automatically disqualified.
Lenders will still pull your credit scores — that hasn't changed. What's different is that DU's decision is no longer bound by a minimum score threshold.
This means the underwriting system evaluates risk more comprehensively. Your credit score is still part of the picture, but it's not the only factor — and it's not a rigid cutoff that automatically disqualifies you.
Meet the buyers who can now access homeownership thanks to this groundbreaking policy change
Recovering from Medical Debt
SITUATION:
Credit score of 580 due to medical bills from 3 years ago. Stable income, but was previously declined for conventional loans.
NOW:
DU evaluates her strong payment history since the medical issue and her stable employment. She qualifies for a conventional loan.
Recent Graduate
SITUATION:
Only had a credit card for 2 years with a "thin file". Limited credit history meant difficulty qualifying under old rules.
NOW:
DU considers his rent payment history, student loan payments, and utilities. His responsible financial behavior qualifies him.
Career Renter
SITUATION:
Paid rent on time for 8 years but doesn't use credit cards. Score sits below 620 with minimal credit accounts.
NOW:
Her perfect rent payment history and utility bills serve as proof of creditworthiness. DU approves based on holistic assessment.
New to the U.S.
SITUATION:
Recently immigrated with strong income but no U.S. credit history. Traditional systems rejected him automatically.
NOW:
DU accepts nontraditional credit documentation, including international banking history and alternative payment records.
Self-Employed Contractor
SITUATION:
Credit score of 605 after a past business struggle. Now financially stable with strong income but just missed the old cutoff.
NOW:
DU weighs his current financial strength, consistent income streams, and recent payment history. He's approved.
Young Couple
SITUATION:
Combined household income is strong, but one partner has no credit score and the other is rebuilding credit.
NOW:
DU evaluates their joint financial picture and accepts alternative credit for the partner with no score. They qualify together.
of renters were previously "credit locked"
potential buyers affected annually
game-changer for access & equity
Getting pre-approved under the new DU system is straightforward — here's your step-by-step roadmap to homeownership
Work with a loan officer or mortgage partner who understands DU 12.0 and the new credit risk model. Not all lenders are equally informed about this change.
Pro Tip: Ask potential lenders: "Are you familiar with Fannie Mae's November 2025 credit rule update?" The right partner makes all the difference.
Provide documentation of your financial situation — income, employment history, debts, assets, and credit history (traditional or alternative).
Desktop Underwriter's proprietary credit risk model analyzes your complete financial picture — not just a credit score.
Income stability: How consistent are your earnings?
Payment history: Do you pay bills on time?
Credit behaviors: How do you manage debt?
Overall risk profile: Comprehensive assessment
Receive your pre-approval (or conditional approval) based on DU's comprehensive risk assessment. Now you're ready to find your dream home with confidence!
No obligation • Free consultation • Expert guidance
Get clear answers about the new Fannie Mae credit rule and what it means for your homebuying journey
Navigating mortgage rule changes requires expertise, dedication, and a partner who stays ahead of the curve
We stay on top of major underwriting rule changes like the DU 12.0 update. We understand the nuances and can guide you through them.
Every buyer's situation is unique. We take the time to understand your financial picture and find the best path forward for you.
We work with mortgage partners who understand these new rules and are committed to helping credit-conscious buyers succeed.
We know the local real estate market inside and out, helping you find homes that fit both your budget and your dreams.
From pre-qualification to closing day, we're with you every step of the way, making the process as smooth as possible.
In today's competitive market, speed matters. We respond quickly to keep your homebuying journey moving forward.
"This is a historic moment for homebuyers who have been held back by arbitrary credit score requirements. We're committed to helping you understand and take advantage of this opportunity. Your dream of homeownership doesn't have to wait — let's make it happen together."
The Pasmore Team
Your Real Estate Partners
Available 7 days a week • Quick response guaranteed
Take the first step toward homeownership. Fill out the form to receive your free consultation and our comprehensive guide explaining the 2025 Fannie Mae credit rule change.
Comprehensive PDF explaining the 2025 Fannie Mae credit rule change in simple terms
We'll assess your situation and let you know if you qualify under the new rules
Speak with a knowledgeable advisor who understands the DU 12.0 update
Zero pressure — just information and guidance to help you make informed decisions