Fannie Mae removes minimum credit score requirements from DU

In a Fannie Mae Selling Guide update released November 6, the agency announced that it will eliminate the minimum 620 credit score requirement from its Desktop Underwriter (DU) system starting November 16, 2025. The change is part of a broader update that also expands Day 1 Certainty offerings and revises documentation requirements for certain construction loans.

HousingWire (subscription required) covered the announcement, noting that the update is designed to broaden borrower access while raising new questions about how lenders will assess and price loans without a fixed credit score threshold.

Key points:

• The 620 minimum representative or average median credit score will no longer apply for new loan casefiles created on or after November 16, 2025.
• DU will instead assess borrower eligibility using its internal risk analysis rather than a fixed credit score threshold.
• Fannie Mae says the update opens opportunities for borrowers with limited or no credit history.
• Industry experts have raised questions about transparency, consistency in underwriting, and how alternative trade lines will be evaluated.

Our Take:

This is a big shift for lenders. Removing the credit score minimum means DU will rely more heavily on other borrower data points to assess risk. For borrowers with thin credit files, this could be a welcome change, opening new doors to homeownership. At Informative Research, we’ll be watching closely to see how DU’s new analysis method performs and what additional data may come into play especially as the industry continues exploring alternative credit measures.