11/09/2025
Gonna ruffle some feathers on this one.
I’ve seen post after post with something about saying “Fannie Mae removed the credit requirement and it's now easier to get qualified!"
I absolutely love that lending is becoming easier to purchase a home. But here’s the truth: while the official credit score requirement might be gone, that doesn’t mean approvals suddenly got easy.
The algorithm that decides whether your loan is approved still isn’t throwing a party for 580 scores. You will still have to have:
A strong down payment
Low debts compared to your income
Or a co-borrower with solid credit
and…it could still be tough.
And even if you sneak through, lower credit means higher costs.
Conventional loans hit you with Loan Level Price Adjustments (LLPAs) that raise your rate and mortgage insurance when your credit is lower.
So technically yes, you might qualify.
But financially you might be better off with FHA, USDA or VA, where the system doesn’t penalize you as much for your score.
Here’s the bottom line. I’m all for softening guidelines to help more people buy homes. But let’s not confuse accessibility with affordability. Raise your credit. Know your options. And don’t believe every headline that says “It's now easier to qualify".
If you’ve got questions about which loan type actually benefits you the most, not just which one sounds best online, let’s chat.
I’ll shoot you straight, help you compare your options, and build a plan that actually gets you into the home you want… not just an “approval” that looks good on paper.
417-353-6823
[email protected]
Erich Edwards is a New American Funding mortgage professional who is focused on customer service and offer competitive pricing on home loans. Get started on your mortgage today.
