Fannie Mae Removes the 620 Credit Score Minimum—Why This Matters to My Clients
Fannie Mae recently brought in an important update, and it affects many of the people I work with on a daily basis. Its Desktop Underwriter system had one strict rule for years: if your credit score was below 620, the system shut down completely. Your application wasn’t reviewed, no matter how strong the rest of your financial profile was. Income, savings, employment stability, payment habits—none of it mattered. The process ended before it even started.
That rule has now been eliminated, and this creates real opportunity for many of my clients.
The update enables complete processing of loan applications with credit scores below 620. Instead of a single number, the system looks at your financial life more comprehensively. It considers the consistency of your income, how long you have been with your employer, how you manage your monthly debts, the savings you are able to build up, and your overall payment behavior.
This matters because many of my clients are financially stable, consistent, and disciplined, but their credit score doesn’t always reflect that. I work with young buyers who are still building credit, with international clients who are establishing a U.S. credit profile, and with people who experienced a temporary dip during a transition or unexpected event. I also see clients who pay everything on time but simply don’t use credit in a way that boosts their score.
Previously, these clients would have automatically been denied before anyone could really understand their real financial story. Now, finally, the system is able to look beyond the score to recognize how you really handle your responsibilities.
This does not mean that all borrowers below 620 will qualify. Lenders and mortgage insurers can still have their own requirements, and pricing will still be a reflection of risk. But for the first time, the complete picture can be reviewed, and many clients who were blocked before may now have a way forward.
In case you want to know if this change helps you, I am here to lead you with clarity, tranquility, and honesty.
WhatsApp: 305-336-8790
Email: levy@dot1416.com
