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Effective for new DU case files created on or after Nov. 16, 2025, Desktop Underwriter (DU) will no longer auto screen out loans solely because a borrower’s score is below 620. DU will evaluate credit risk holistically rather than by a single threshold.
Fannie Mae’s Selling Guide Announcement SEL-2025-09 removes the long-standing minimum representative credit score of 620 for DU loan case files created on or after Nov. 16, 2025. The updated B3-5.1-01 language reads, “A minimum credit score is not required for DU loan casefiles. DU will assess a borrower’s creditworthiness in accordance with the risk factors outlined in B3-2-03, Risk Factors Evaluated by DU.” The DU and DUO Release Notes reinforce the same point and clarify that the hard floor will be replaced by a minimum credit risk standard that is embedded in DU’s overall risk assessment.
What is not changing? Lenders still request scores from the credit repositories. The Federal Housing Finance Agency has framed the move as a process and wording alignment, not a loosening of underwriting standards. The underlying risk management remains in place. The path to an Approve/Eligible just shifts from a bright line score to a fuller evaluation of the borrower’s total profile.
Credit scores still matter. They are part of the data. The difference is that DU will no longer return a quick decline just because a score is below 620. A borrower with a sub-620 score, clean recent pay history, reasonable utilization, strong income, and measurable reserves may now pass DU when the full picture is favorable.
This change moves the job of the originator from “can we get the score to 620” toward “can we demonstrate overall creditworthiness” Practical steps:
With the hard floor gone, consistency in packaging becomes more important. Establish checklists and visual workflows that guide every LO through the same steps. Update your sales enablement materials so the field teams present the change correctly. The message is not “any score is fine,” but rather “DU is relying on a full risk review.”
Borrowers near the old threshold may be newly eligible, which is a legitimate outreach angle. Balance that with clear expectations. Approval still depends on the total picture. Position the change as expanded access for well documented borrowers, not a guaranteed pass.
Borrowers with scores under 620 may now qualify through DU if other parts of the profile are strong. Key behaviors still matter:
For clients with short histories or nontraditional credit, the holistic approach can help. Positive rent history, consistent utilities, and other verifiable patterns can strengthen files that would have failed on score alone.
Pipeline logic that relied on a 620 cutoff will need an update. Create a near-miss queue for revisit under the new DU framework. Collaborate with referral partners who serve clients in the 580 to 619 band and re-open those conversations with a documented plan.
Use those insights to tighten pre-qualification guardrails and to focus your marketing on the borrower profiles that convert.
Yes. Lenders still request scores from the repositories. DU just will not decline you solely because the score falls below 620.
No. Regulators described the change as a process and wording alignment. DU’s risk standards still apply.
Mortgage Maker was built for the loan officer of 2025 . The platform gives you borrower-ready visuals, real time scenario toggles, dynamic comparisons, and white label reports that make complex risk concepts simple. In a world where the conversation shifts from a single score to a complete story, clarity is your advantage. Mortgage Maker helps deliver that clarity in minutes.
