“How the Removal of the 620 Credit-Score Minimum by Fannie Mae Affects Denver Metro Home-Buyers”

by Dawn Green

🏡 Fannie Mae Is Dropping Its 620 Credit Score Minimum — Here’s What That Means for Buyers

Big news is coming to the mortgage world — and it could make buying a home a lot more accessible for some buyers.

Starting November 16, 2025, Fannie Mae will no longer require a minimum credit score of 620 for loans submitted through its Desktop Underwriter (DU) system.

Instead of relying on a strict score cutoff, DU will now evaluate a borrower’s entire financial picture — income, assets, debt, and overall stability — to determine eligibility.

Here’s what’s changing, what’s staying the same, and why this could be a game-changer for many Denver Metro and Colorado Springs buyers.

🔍 What’s Changing

620 minimum credit score removed for loans submitted through DU (sources: Fannie Mae, Mortgage Professional America)
Effective date: November 16, 2025 — for new loan casefiles (Fannie Mae)
DU will use a comprehensive credit-risk evaluation, not a hard score floor (HousingWire)

⚖️ What’s Not Changing (and What to Still Watch)

Lenders are still required to pull credit reports for all borrowers (Friedman Vartolo LLP)
Some lenders or private mortgage insurers may continue setting their own minimum scores (Mortgage Professional America)
Other underwriting standards of Fannie Mae remain unchanged (HousingWire)

🌄 What It Means for Buyers in Denver Metro & Colorado Springs

First-time or relocating buyers: more potential access to financing.
Buyers with strong income and savings but lower scores: new opportunity to qualify.
Investors or new-construction clients: still need a well-rounded financial file.
Remember — this doesn’t mean everyone will qualify. Your full picture (income, debts, property type, reserves) still matters.
✅ Tip: Get pre-approved now, keep your debt-to-income ratio healthy, and organize your documentation. I can connect you with trusted local lenders who know these upcoming DU changes.

🧭 Action Steps for You

Check your credit report for errors or outdated items.
Talk to a lender about your complete financial profile — not just your score.
Evaluate your DTI, reserves, and income stability.
Connect with me, Dawn Green, to plan your home search in the South Denver Metro and Colorado Springs areas. We’ll find the community that fits your lifestyle — spacious garage, open floor plan, great outdoor space, and room for adventure.
If you were ever told “no” due to your credit score — let’s revisit that. Your situation might look very different under these new guidelines.

🏠 What’s Staying the Same

Even with this change:

Lenders must still request credit reports and scores for all borrowers.
Individual lenders, mortgage insurers, or loan products may keep their own credit minimums.

💡 Why This Matters

This is a major step toward expanding access to homeownership. It especially benefits buyers who:

Have solid income and cash reserves but lower scores.
Experienced a one-time credit hiccup (like a medical collection).
Are building or rebuilding their credit history.

It’s a move toward looking at the whole person, not just a number.

🧮 What Buyers Should Do Now

Start preparing early. Even though this takes effect in November 2025, improving your financial profile now can mean better rates later.
Work with an experienced lender. Each one may interpret these changes differently.
Partner with a real estate agent who understands how lending shifts affect your buying power. Knowing these nuances gives you a competitive edge in a tight market.

💬 My Take

As someone who’s worked in both mortgage and real estate, I see this as a welcome shift. For too long, a single number determined whether someone could buy a home. Now, a borrower’s full financial health will tell the story — and that could finally level the playing field for many hardworking families.

If you’re planning to buy in 2025, now’s the time to review your finances, connect with a lender, and map out your strategy.

Let’s talk about what this change could mean for you:
👉 DawnGreenSellsDenver.com
📩 Message me directly — I’ll help you find your next home and guide you through the lending updates with confidence.