Big Changes at Fannie Mae = A Huge Opportunity for You + Your Next Home

RJ Andrews
Nov 16, 2025
3 min read

Why the credit-score barrier is getting softer—and why that matters for your new beginning in Houston real estate.

It’s Regina Andrews with The Andrews Group, here to bring you game-changing news for anyone who’s felt locked out of homeownership because of credit. If you’ve been told “you don’t hit the score, you don’t qualify,” I want you to sit up and take notice—because starting November 15/16, 2025, things are shifting in a big way.

As someone who works daily with self-employed buyers, ITIN holders, folks without traditional tax returns or full documentation, and renters ready to own, this update matters. Big time.

What’s Changing?

Here’s the breakdown:

Fannie Mae’s automated underwriting tool, Desktop Underwriter® (DU®), will no longer enforce a minimum third-party credit score as a hard threshold when evaluating loans for sale to Fannie Mae. J.D. Peck+3Fannie Mae+3Fannie Mae+3
Specifically: For new loan case-files created on or after approximately November 15/16, 2025, Fannie Mae is removing the old minimum representative or average median credit score requirement (commonly 620) that used to apply. Fannie Mae+1
What this means in plain language: You’re no longer automatically disqualified just because your credit score falls under a fixed number. Instead, your full financial picture will come into play.
Note: The credit score pull is still required by Fannie Mae’s selling guide (for loan-sale rules) but it’s not the rigid gatekeeper it used to be. Fannie Mae+2J.D. Peck+2

Why This Matters (Especially for You)

If you’ve been in any of these situations, this update is powerful:

You’re self-employed, cash-paid, or without full W2s/tax returns, and you’ve been told your “score is too low.”
You have limited credit history (renters, younger buyers, ITIN holders) and the 620-cutoff just felt like an invisible wall.
You’re looking at new construction or a master-planned community—knowing every dollar counts and every underwriting advantage helps.In short: this change opens doors. It gives you a stronger chance that you’ll be evaluated on everything you bring (income, reserves, payment history, stability, down payment) rather than being shut out by a single number.

What Stays the Same—What You Still Need to Focus On

While this is exciting, let’s keep it real: This is not a free pass. The underwriting fundamentals still hold.Here’s what will still matter (and what you should strengthen):

Income stability and documentation—whether you’re W-2, self-employed, or using creative financing.
Debt-to-income ratio, reserves in the bank, down payment, assets.
Payment history—including rent, utilities, other bills—not just “credit cards + loans.”
Property details, loan purpose, address of new construction or resale.
Lender overlays: Some lenders may still have internal minimums or “credit score floors” even though Fannie Mae removed the official minimum. The Truth About Mortgage

Translation: If you’ve been told “you don’t hit score X,” now you might qualify, but you’ll still work with your lender and your real estate team (that’s us!) to plug all the other pieces in place.

How The Andrews Group & Our Creative-Finance Strategy Fit In

Because you know I specialize in non-traditional, “reset” buyers:

You’ve been denied because of credit → we can take a fresh look at your situation under these new rules.
You’re a renter ready to own → With builder incentives (closing-cost paid, price reductions, special deals in communities like The Canopies, Avalon at Cypress, Tamarron) + new underwriting flexibility, this could be your moment.
You’re self-employed, freelance, ITIN holder, or using the Earned Equity lease-to-own program → The credit-score shift gives an extra layer of possibility.We’ll help you build the full picture: income, reserves, rent history, payment patterns, debt payoff strategies—so when you apply, you’re in the strongest shape possible for what the updated DU model will evaluate.

Your Next Step (Yes, It’s Time)

Ready to see what this means for you? Here’s what to do:

DM or call me (Regina Andrews) and say “RESET”.
We’ll schedule a friendly “new-start” strategy session—no pressure, just clarity.
We’ll review your full story: credit, income, debt, down payment, desired community (north/ west Houston, new construction, master-planned).
Based on the update from Fannie Mae, we’ll identify which lenders (including builder lenders) and which loan programs give you the best shot.
Once you’re ready, we’ll list your next-home target (or new construction lot), fully aligned with your timeline and goals.

Final Words

This is a moment. A moment for people who’ve been told “you don’t fit the mold” to realise they might already fit the new-mold.Your dream of owning in Houston’s new-home world—whether you’re upgrading, relocating, or finally stepping out of renting—is still yours.With the new changes at Fannie Mae, the path is that much clearer. And we’re here to walk it with you.🏡❤️