Big changes from Fannie Mae in November, and they could expand access to homeownership for many buyers.
Here’s what changed:
1️⃣ 620 Minimum Credit Score Requirement Removed
Fannie Mae will no longer require a minimum 620 credit score.
2️⃣ Updated Rules for Borrowers With No Credit Scores
This only applies to borrowers without at least one reported credit or installment account. Fannie Mae will issue updated guidance for alternative credit documentation and homebuyer education.
3️⃣ New Credit Risk Evaluation
Instead of relying on a single score, Fannie Mae will evaluate overall risk using multiple factors—credit history, income, debt levels, property characteristics, and loan purpose.
FHFA Director Bill Pulte shared: “Our underwriting standards are the same… big deal for consumers, small or nothing deal for underwriting.”
More clarity, more consistency, and more opportunity for buyers. 🏡💙 Reach out today and let’s explore your financing options with LoanPeople! #FannieMae#MortgageUpdate#HomebuyerNews