We stay up-to-date on the latest lending updates, so our clients and partners can move with confidence. Fannie Mae has just announced exciting changes that will take effect for loans registered on or after November 16, 2025. These updates are to expand access to financing while making the credit evaluation process more flexible and inclusive.
Key Highlights of the Changes
- No More 620 Minimum Credit Score
The longstanding requirement for a minimum credit score of 620 will be eliminated. Instead, borrowers will be evaluated using a new minimum credit risk factor method, which provides a broader assessment of overall creditworthiness. - Investors With 7–10 Properties Get Relief
Previously, borrowers financing 7 to 10 properties needed a minimum credit score of 720. This requirement will be removed, making it easier for seasoned investors to expand their portfolios. - Alternative Credit Trade Line Rules Simplified
New guidelines will only require alternative credit trade lines for borrowers who:- Have no credit score, and
- Have fewer than one credit or installment trade line on their credit report.
This makes the process smoother for borrowers with limited traditional credit history.
What This Means for Borrowers
These changes represent a major step forward in making mortgage financing more accessible. By shifting from rigid credit score minimums to a more holistic risk evaluation, Fannie Mae is opening the door for more borrowers, including those with limited credit histories or multiple investment properties.
We’re ready to help you understand how these updates impact your financing options and guide you to the best solutions for your needs.