The Truth About Fannie Mae's New Credit Score Rule (It's Not What You Think)

In this episode of Mortgage Matters in Minutes, Brent Rasmussen explains how banks determine your loan eligibility. We discuss crucial factors like your debt to income ratio, income stability, and available assets. Understanding these elements is key to navigating the home lending process and securing the best home loans for your situation.🏡 The headlines say Fannie Mae is now allowing mortgages with no minimum 620 credit score, and social media is exploding with confusion, frustration, and misinformation. But what’s the actual truth behind this major announcement? In this week’s episode of Mortgage Matters in Minutes, Brent Rasmussen — owner of Mortgage Specialists and 25-year mortgage veteran — breaks down what this change actually does and does NOT do. 🏡 In This Video You’ll Learn: Why Fannie Mae removed the “automatic denial” below 620 Why this is not a return to subprime lending What DU (Desktop Underwriter) and LPA will now evaluate Why most borrowers still won’t qualify with credit under 620 How down payment, DTI, income stability, reserves & risk layering still apply Why lenders may still deny low-credit files due to overlays The BIG question: Will mortgage insurance companies even insure these loans? Why this change affects only a tiny sliver of borrowers The truth behind what news headlines are leaving out This change is more about expanded fairness for unique situations — not lowering lending standards. Before debating it online, make sure you know the full picture. 🔗 Helpful Resources ☑️ Apply for a mortgage: https://mtg-specialists.com/online-application/ ☑️ Schedule a call: https://calendly.com/mortgage-specialists-omaha ☑️ Call: 402-991-5153 ☑️ Blog: https://mtg-specialists.com/blog/ ☑️ Reviews: https://tinyurl.com/55zft5ef 📱 Follow Mortgage Specialists 📘 Facebook: facebook.com/mortgagespecialists 📸 Instagram: instagram.com/mortgagespecialistsomaha 🐦 Twitter/X: twitter.com/MTGSpecialists Timestamps for MMM 190: What Does Fannie Mae's NEW Credit Score Floor Mean for You? 0:00 - Intro 1:08 - Fannie Mae's No Credit Score Floor 3:25 - Why Make this Change? 4:45 - Challenges of Obtaining a Mortgage with Low Credit 6:28 - Conclusion 7:51 - Outro Licensing info: Brent Rasmussen, NMLS 5918 at Mortgage Specialists, LLC NMLS 2424 For licensing, go to www.nmlsconsumeraccess.org Address: 8420 W Dodge Road #113, Omaha, NE 68114 Equal Housing Lender Website: mtg-specialists.com Applicant subject to credit and underwriting approval. Restrictions may apply, contact Mortgage Specialists, LLC for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Mortgage Specialists, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Mortgage Specialists, LLC. Mortgage Specialists, LLC and its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. Mortgage Specialists, LLC is a limited liability company organized under the laws of the State of Nebraska. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency. Mortgage Matters in Minutes Episode 190: What Does Fannie Mae's NEW Credit Score Floor Mean for You?