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Home-buying laws & updates

Fannie Mae & Freddie Mac Credit Score and DTI Changes

No more 620 floor for Desktop Underwriter loans, VantageScore 4.0 for every lender, and one pricing grid for both scores.

Every item cites an official source (FHFA, Fannie Mae, Freddie Mac, HUD or VA) and the date we checked it. Last checked Oct 22, 2026.

General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.

Official, in effect Fannie Mae dropped the 620 minimum score for DU loans (Nov 16, 2025)

For new loan files created in Fannie Mae's automated system (Desktop Underwriter, "DU") on or after Nov 16, 2025, there is no longer a fixed 620 minimum credit score. DU decides using its own risk review. Lenders still have to pull credit scores, and manually underwritten loans still need 620 (fixed rate) or 640 (ARM). Fannie also removed the 720 minimum score for borrowers with 7 to 10 financed properties buying a second home or investment property.

Jargon buster: DU. Desktop Underwriter, Fannie Mae's computer system that approves or declines a loan file. Most Fannie loans go through it.

Many lenders still set their own minimum score (an "overlay"), so a lower score is not a guaranteed approval.

Source: Fannie Mae Selling Guide Announcement SEL-2025-09 (Nov 2025) · Fannie Mae Selling Guide B3-5.1-01 · Checked Oct 22, 2026

Official, in effect VantageScore 4.0 is open to all lenders (Sept 9, 2026)

All Fannie Mae and Freddie Mac approved lenders can now use VantageScore 4.0 or Classic FICO. They must use the same score model for every borrower on the loan. FICO 10T is not yet accepted.

Source: FHFA Credit Scores page · Fannie Mae Lender Letter LL-2026-06 (Sept 9, updated Sept 30, 2026) · Checked Oct 22, 2026

Official, in effect One pricing grid for FICO and VantageScore (effective Oct 1, 2026)

Fannie Mae and Freddie Mac now use one loan-level price adjustment (LLPA) grid for both score models, so the same score number costs the same no matter which model the lender used.

Jargon buster: LLPA. Loan-level price adjustment, an upfront fee (shown as a % of the loan) based on your score, down payment and loan type. You usually pay it through a slightly higher rate or points.

Source: FHFA Credit Scores page · Fannie Mae Lender Letter LL-2026-06 (Sept 9, updated Sept 30, 2026) · Fannie Mae LLPA Matrix, updated Sept 30, 2026 · Checked Oct 22, 2026

Also announced: @pulte on X, Sept 29, 2026 (X posts are not official guidance; we cite the official document above.)

Official, in effect DTI limits (unchanged): 50% max for DU loans

Fannie Mae's maximum debt-to-income ratio is 50% for DU loans. Manually underwritten loans are capped at 36%, or up to 45% with stronger credit and reserves.

Jargon buster: DTI (debt-to-income ratio). Your monthly debt payments, including the new mortgage, divided by your gross (before-tax) monthly income.
Worked example: Working out DTI
  • Gross income: $8,000 a month.
  • New mortgage payment with taxes and insurance $2,400 + car $400 + student loan $200 = $3,000.
  • $3,000 ÷ $8,000 = 37.5% DTI. That is under the 50% DU maximum.

Example numbers are for learning only. Your lender's figures will differ.

Source: Fannie Mae Selling Guide B3-6-02 · Checked Oct 22, 2026

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General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.