Did Fannie Mae really remove the 620 minimum credit score in DU?

Yes. For DU loan casefiles created on or after Nov. 16, 2025, Fannie Mae removed the required 620 representative or average median credit score. DU now relies on a full credit-risk assessment rather than a hard score floor.

Does no minimum score mean anyone can qualify for a Kentucky conventional mortgage?

No. Borrowers must still meet all other underwriting criteria: income and employment verification, acceptable debt-to-income ratio, assets and reserves, property eligibility, and documentation. Lenders may also apply overlays.

How does this compare to FHA, VA, USDA, and KHC down payment assistance?

The DU change expands access to conventional financing for borrowers who previously fell below 620 but have compensating strengths. FHA, VA, and USDA still offer powerful options—especially for lower down payments—and KHC can pair with eligible first-time homebuyers. A side-by-side review with a licensed loan officer can identify the best fit.

Will pricing or mortgage insurance be better with conventional after this update?

Risk-based pricing and mortgage insurance still apply and depend on your overall profile. Some borrowers will benefit from conventional; others may see better total cost with FHA, VA, or USDA. Scenario modeling is recommended.

Every Kentucky Loan Type. One Local Expert.

Whether you’re buying your first home, using down payment assistance, or rebuilding credit — there’s a program that fits. Compare them side by side before you commit.

🏠 FHA Loan

The go-to for first-time buyers and 580+ credit. Low down payment and flexible guidelines.

3.5% down · 580+ creditLearn More →

🎖 VA Loan

Zero down and no monthly mortgage insurance for veterans and active-duty service members.

$0 down · VA eligibleLearn More →

🌾 USDA Loan

100% financing for eligible rural and suburban Kentucky buyers within income limits.

$0 down · USDA areasLearn More →

🏛 KHC Assistance

Kentucky Housing down payment assistance for first-time and repeat buyers.

Up to $12,500 assistanceLearn More →

📈 Conventional

Best long-term value for stronger credit. PMI cancels at 20% equity, unlike FHA.

3% down · 620+ creditLearn More →

💰 Zero Down Options

Every route to buying with nothing down in Kentucky — VA, USDA, and KHC combos.

$0 down programsLearn More →

🌟 First-Time Buyers

All Kentucky first-time homebuyer programs compared in plain English.

Programs & grantsLearn More →

📊 Credit Scores

What score you actually need for each loan type in 2026 — and how to raise yours.

By loan programLearn More →

Free Kentucky Homebuyer Tools

Run your own numbers before you call. Each tool uses 2026 FHA, VA, USDA, KHC and Conventional guidelines.

📈 Credit Score Simulator

See how paying down cards or fixing errors could move your score, and which loan programs it unlocks.

What-if score plannerOpen the tool →

💵 Qualifying Income

Find out what income a lender will count: hourly pay, overtime, self-employment and benefits.

Income calculatorOpen the tool →

⚖️ Debt-to-Income (DTI)

Check your DTI against FHA, VA, USDA and Conventional limits, including student loan rules.

DTI calculatorOpen the tool →

🏡 KHC Assistance Payment

See your monthly payment with the $12,500 KHC down payment loan and how much cash you still need at closing.

KHC DAP calculatorOpen the tool →

Getting a Kentucky Mortgage in 3 Simple Steps

No confusing paperwork trails. No surprise fees. A clear path from first call to keys in hand.

💬 Get Pre-Qualified

Free application review with same-day answers. We look at your credit, income, and goals — no cost, no obligation, no pressure.

📋 Compare Your Options

FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.

🏠 Close & Get Your Keys

Guided from contract to closing — appraisal, title, and underwriting coordinated so you always know what happens next.

Watch: Kentucky Mortgage Guides

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▶ More videos on my YouTube channel →

Joel Lobb and family - Kentucky mortgage loan officer

Kentucky Local. Not a Call Center.

Hi, I’m Joel Lobb — a Kentucky dad who’s spent 20+ years helping families across all 120 counties buy their first home. When you call, you get me — not a phone tree. Questions on a Saturday morning? I answer.

1,300+ Kentucky families have trusted me with their mortgage — from Louisville to Lexington to the smallest towns in the state. Free application reviews, same-day pre-approvals, and honest answers about what you actually qualify for.

See What You Qualify For →

Fannie Mae Removes Minimum Credit Score! What It Means for Kentucky Homebuyers (Conventional Loan Update 2025)

- November 11, 2025

Breaking Update

Fannie Mae Removes Minimum Credit Score in DU — What It Means for Kentucky Conventional Mortgages

Effective for DU casefiles created on/after November 16, 2025

Fannie Mae has removed the 620 minimum credit score requirement from Desktop Underwriter® (DU®) for new loan casefiles. Instead of a hard cutoff, DU now evaluates your full credit profile. For Kentucky first-time homebuyers, this may unlock access to a Kentucky conventional mortgage even if your score was previously “too low.”

Key Takeaways for Kentucky Homebuyers

No hard 620 floor

DU now runs a comprehensive risk assessment of your overall profile—income, debts, payment history, reserves, property, and purpose—not just your score.

Still full underwriting

“No minimum credit score required” doesn’t mean automatic approval. You must meet standard credit, income, asset, and property guidelines. Lenders may apply overlays.

Timing matters

This applies to new DU casefiles created on or after Nov. 16, 2025. Older files keep old rules. Coordinate submission with your loan officer.

Pricing still risk-based

Rates and mortgage insurance depend on your total profile. We’ll compare conventional vs. VA, USDA, and FHA—and whether KHC down payment assistance helps.

Who Stands to Benefit in Kentucky?

First-time buyers with scores below 620 but strong income stability and on-time housing payments.
Borrowers with limited credit depth who can document compensating factors (reserves, lower DTI, verified rent, reduced utilization).
Clients comparing total cost of ownership across conventional vs. FHA/VA/USDA options.

Pro tip: Before running DU, clean up reporting errors, reduce revolving balances, and assemble documentation (W-2s/1099s, paystubs, bank statements, ID, and housing history). This strengthens DU’s overall assessment even without a score floor.

Conventional vs. FHA, VA, USDA in Kentucky

Conventional (Fannie Mae)

Now no minimum credit score required in DU for new casefiles. Best fit when overall profile is strong and mortgage insurance costs are competitive.

Learn more at Fannie Mae

FHA

Often lower down payment and flexible credit, but includes mortgage insurance. Useful if pricing beats conventional for your profile.

Kentucky FHA Guide

VA & USDA

VA for eligible Veterans/Service Members—often no down payment. USDA offers zero down in eligible areas with income limits.

Kentucky VA Info • Kentucky USDA Guide

Action Plan for Kentucky First-Time Homebuyers

Free pre-check: Share your basic info and goals. We’ll map the best path: conventional vs FHA/VA/USDA + KHC.
DU scenario runs: We’ll run DU with the new rules and compare pricing and MI.
Documentation: Gather ID, income, assets, and housing history so we can move quickly to full approval.

Ready to see if a Kentucky conventional mortgage works for you—without a minimum credit score requirement in DU?

Call/Text 502-905-3708 • Email kentuckyloan@gmail.com • Office: 10602 Timberwood Cir, Ste 3, Louisville, KY 40223

Start Your Pre-Approval

FAQs: No Minimum Credit Score Required in DU

Does this mean scores don’t matter anymore?: No. Scores still influence risk and pricing. DU simply removed the hard 620 gate for new casefiles—your full profile drives the decision.
Will my lender still require a certain score?: Some lenders impose overlays (internal minimums). We’ll shop your scenario with investors aligned to Fannie Mae’s update.
Can KHC down payment assistance pair with conventional?: Yes—if you meet program rules. We regularly compare KHC DPA with conventional, FHA, VA, and USDA options to find the best total cost.
When does this apply?: For loan casefiles created in DU on or after Nov. 16, 2025. If your file predates this, we can recreate the casefile under the new rules where appropriate.

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