Buying a Home Without a Credit Score? DU’s New Rules Make It Possible

Big changes are coming to the mortgage world, and this one could reshape how buyers qualify for a conventional loan.

Fannie Mae announced that beginning November 16, 2025, Desktop Underwriter® (DU) will no longer require a minimum credit score for loan eligibility. Instead of relying on the traditional 620-minimum rule, DU will evaluate homebuyers using a holistic, risk-based assessment.

This shift impacts first-time homebuyers, credit-invisible buyers, and realtors helping clients navigate mortgage requirements. And yes,  it could open the doors to homeownership for thousands of people who previously couldn’t qualify.

Let’s break it down.

What’s Changing in DU? (Simplified for Buyers & Realtors)

Under today’s rules, DU needs someone on the loan with a 620+ credit score. No exceptions. But beginning in November 2025, DU won’t need a minimum score at all.

Instead, it will evaluate risk using a combination of:

• Credit history and payment patterns
• Income stability
• Savings and assets
• Property factors
• Overall borrower + loan profile

This means your financial story matters more than one three-digit number, which is a shift that aligns with Luminate Bank’s mission to make homeownership more accessible, more transparent, and more human.

If You Don’t Have a Credit Score, You’re Still in the Game

A lot of responsible adults pay everything in cash or online and never establish traditional credit. Under this new DU update:

• You can apply even with no credit score
• DU may ask your lender to build a nontraditional credit profile (rent, utilities, insurance, etc.)
• DU may require homebuyer education
• These requirements are no longer tied to whether a credit score exists

In other words, borrowers who’ve been shut out of the system simply because their lives don’t revolve around credit cards now have a path forward.

Why Fannie Mae Is Doing This

This update is part of DU Version 12.0, and it reflects a shift we’re seeing across the financial world:

• More inclusive credit evaluation: Scores aren’t going away, but they’re no longer the gatekeeper for eligibility.
• A fairer approach for younger or credit-invisible buyers: Millions of Americans have thin credit files despite strong payment histories.
• A move toward modern, data-rich underwriting: Income, cash flow, and consistent housing payments often tell the better story.

Key Dates You Need to Know

• November 15, 2025: All other DU updates take effect for loans submitted or resubmitted.
• November 16, 2025: Minimum credit score requirements are officially removed for new DU casefiles.

So, if you're eyeing a home purchase in late 2025 or early, timing could play in your favor.

What About Pricing, Mortgage Insurance, and Investor Guidelines?

This part still involves some moving pieces, but here’s what we know:

Pricing & LLPAs

The pricing structure already accounts for lower credit tiers (like “FICO ≤ 639”), so we’re not expecting major pricing shocks right away.

Mortgage Insurance (MI)

MI companies are still reviewing this change. Their reactions may influence:

• MI pricing
• Credit documentation expectations
• How they handle loans with no score

Investors

Investors may introduce overlays or additional credit history guidelines. We won’t know specifics until they publish updates.

At Luminate, we’ll keep a close eye on these responses so we can guide buyers and partners with absolute clarity, not guesswork.

Bottom Line: The Credit Score Is No Longer the Gatekeeper

Fannie Mae’s removal of minimum credit score requirements in DU is a major win for borrowers who’ve been overlooked by traditional credit models. It makes underwriting more inclusive, more flexible, and more reflective of real-world financial behavior.

As MI companies and investors finalize their guidelines, we’ll share updates to keep our buyers, realtors, and partners ahead of the curve.



And if you’re thinking about buying a home in the next year? This change could open doors that weren’t open before.