Fannie Mae Ending Its Hard 620 Score Cutoff

Starting next week, Fannie Mae is eliminating its minimum 620 credit score requirement for borrowers seeking loans that will be sold to the government-sponsored enterprise (GSE).

The move, which is in line with a previous change at Freddie Mac, is designed to expand access to mortgage credit, particularly among borrowers with so-called “thin” credit files or non-traditional credit histories.

Research shows that reliance on traditional credit score models can also have a discriminatory impact on communities of color, potentially locking out otherwise qualified borrowers from the housing market,

According to Fannie Mae's latest Selling Guide Bulletin (SEL-2025-09), beginning November 16, loans processed through its Desktop Underwriter (DU) will consider borrower eligibility based on DU’s own analysis. Instead of relying on a hard 620 cutoff, DU’s automated risk assessment tool will determine eligibility based on the borrower’s overall financial profile.