A major shift in how lenders judge borrowers means your credit score may soon matter less and your overall financial story more when you apply for a mortgage.
Fannie And Freddie Loosen Score-Driven Loan Rules
Fannie Mae, early last week, removed its minimum credit-score requirement for most loans run through its automated Desktop Underwriter system, allowing approvals based on broader data like payment history and income instead of a hard 620 cutoff.
Freddie Mac, meanwhile, has already allowed its Loan Product Advisor to approve borrowers with no usable credit score when they can document strong alternative histories, such as on-time rent and utility payments.
At the same time, federal regulators have cleared Fannie and Freddie to move from the old FICO models to newer FICO 10T and VantageScore 4.0, which can incorporate
Credit Scores Lose Grip As Gatekeeper In Mortgage Approval Process: Here’s Why
