No Credit Score? Fannie Mae Dropped Its 620 Minimum — What Immigrants Need to Know

Quick answer (updated October 2026): A no credit score mortgage in 2026 is possible through Fannie Mae. For Desktop Underwriter casefiles created on or after November 16, 2025, Fannie no longer sets a minimum credit score; DU evaluates the whole file. Manually underwritten loans still need 620 (fixed) or 640 (ARM), and many lenders keep their own 620+ overlay.

You moved from Bengaluru or Lahore two years ago with a strong CIBIL score, savings, and a solid job. In the US, your credit report shows one secured card and a car loan you opened last spring. Your FICO might be "unscorable," or a thin 680 that swings 40 points every time you use your card.

For years, that meant waiting. Now the rules have shifted, at least at the agency level. This guide explains exactly what Fannie Mae changed, what didn't change, where lender overlays still block you, and how to build a file that gets through Desktop Underwriter with limited credit.

What changed: Fannie Mae 620 minimum removed for DU

Fannie Mae announced the change in Selling Guide update SEL-2025-09. For DU loan casefiles on or after November 16, 2025, the Selling Guide (B3-5.1-01) says: "A minimum credit score is not required for DU loan casefiles."

What that means in practice:

• DU makes the call. Instead of a hard 620 cutoff, the automated system weighs credit along with down payment, reserves, debt-to-income and other factors.

• Manual underwriting is unchanged. Loans underwritten manually still require a minimum 620 for fixed-rate and 640 for ARMs.

• Lenders can still say no. Many lenders keep a 620 (or higher) overlay for their own risk reasons. That's the lender's rule, not Fannie's.

Also new: since September 9, 2026, all approved lenders may use VantageScore 4.0 for Fannie and Freddie loans, with pricing aligned September 30, 2026. Classic FICO remains allowed, and a lender uses one model per loan. A tri-merge report is still required.

Thin file mortgage: how DU can see your credit

If you don't have a score, or a thin one, DU still needs evidence that you pay bills. There are three main routes.

1. Positive rent payment history in DU

DU can count on-time rent as a positive factor. The requirements:

• At least 12 months of rent payments of $300 or more per month

• Verified through the credit report or a 12-month asset verification report showing the payments leaving your bank account

• At least one borrower has rented for 12+ months, has no mortgage, and has a limited or no credit score

• Positive only: it can help you, and DU doesn't use it to hurt you

• Not limited to first-time buyers

For most new immigrants paying $1,800 a month for an apartment in Jersey City or Irving, this is the single most useful tool. Pay rent from your US checking account, not by cash or Zelle from a friend's account, so the trail is clean. Rent reporting services can also help get it onto your report; see rent reporting to build credit.

2. Nontraditional credit references

Fannie's guide (B3-5.4-03) allows nontraditional credit, such as 12 months of rent, utilities, phone or insurance payments, for borrowers without enough traditional credit. These files are often manually underwritten, which brings back the 620/640 rule for borrowers who do have scores. Our guide on non-traditional credit and manual underwriting walks through the documentation.

3. Foreign credit references for non-citizens

Here's the part most immigrants never hear about. When a non-US citizen doesn't have enough US credit references, Fannie's guide says the lender "must use credit references from foreign countries." That can include a credit report or reference letters from your home country. Your CIBIL report doesn't convert into a FICO, but it can support a nontraditional credit file; see does a CIBIL score work in the USA.

Score versus no score: what each path looks like

Your credit profile	Most likely path	Score minimum	Key evidence
No score / unscorable	DU with rent history, or manual with nontraditional credit	None in DU; manual depends on file	12 months rent, utility/phone history, foreign references
Thin file, score 580–619	DU (agency); many lenders overlay 620	None in DU	Rent history, strong reserves, lower DTI
Score 620–679	DU standard	Meets most overlays	Usual docs; LLPAs price in the score
Score 680+	DU standard	Meets nearly all overlays	Usual docs

Talk to a loan officer who's seen this before: If a lender told you "come back at 620," that may be its overlay talking. We'll do a side-by-side lender overlay comparison across our 150+ wholesale lenders to find ones that let DU decide. Book a call or start your application.

New to US credit home loan: a 12-month plan

If you're not buying for another year, use the time well. A clean, boring file beats a clever one.

Month	Action
1	Open a US checking account; set rent to auto-pay from it
1–2	Get a secured card or a card through an international credit-history program
2	Put one small recurring bill on the card; set autopay in full
3	Sign up for rent reporting if your landlord doesn't report
6	Pull your free reports; dispute any errors or name mismatches
6–12	Keep utilization low; avoid opening new accounts
10–12	Gather 12 months of bank statements showing rent; request a home-country credit report

If you had an American Express card in India, ask whether the card can transfer; see Amex Global Transfer from India. For a broader timeline, our new immigrant credit timeline goes deeper.

What not to do

• Don't open three cards in a month to "build" credit; new inquiries and young accounts can lower a thin score.

• Don't pay rent in cash or from a family member's account.

• Don't co-sign for a friend's car loan.

• Don't close your oldest card.

How no score affects pricing and payment

Credit scores feed into Fannie and Freddie loan-level pricing adjustments, so a thin or missing score can cost more even when the file is approved. We won't quote a premium here because it varies by lender, loan-to-value and the day's pricing.

Here's the base payment for context on a hypothetical $350,000 loan:

Term	Rate (illustration only)	Principal & interest
30-year fixed	7.40%	$2,423.33/month
15-year fixed	6.71%	$3,089.43/month

Freddie Mac weekly average, Oct 15, 2026; illustration only, not a quote or offer. Your rate depends on credit, LTV, loan type and lender.

Mortgage insurance on loans with less than 20% down also depends on credit. A bigger down payment or more reserves can offset a thin file in DU's eyes.

What the rules actually say

• Fannie Mae Selling Guide B3-5.1-01 / SEL-2025-09: "A minimum credit score is not required for DU loan casefiles," for casefiles on or after November 16, 2025. Manual underwriting minimums remain 620 fixed / 640 ARM.

• Fannie Mae Selling Guide B3-5.4-03: nontraditional credit allowed; for non-US citizens without sufficient US credit references, lenders must use credit references from foreign countries.

• DU positive rent payment history: 12 months of rent of $300+ verified via credit report or 12-month asset verification report; positive only.

• FHFA credit score update (September 2026): VantageScore 4.0 available to all approved lenders since September 9, 2026; pricing aligned September 30, 2026; tri-merge still required.

Frequently Asked Questions

Q: Can I get a mortgage with no credit score in 2026?
A: Yes, potentially. Fannie Mae's DU no longer requires a minimum credit score for casefiles on or after November 16, 2025. DU evaluates the entire file, and positive rent history or nontraditional credit can help. Many lenders still overlay a 620 minimum, so you may need to shop.

Q: Did Fannie Mae really remove the 620 minimum?
A: For loans run through Desktop Underwriter, yes, as of November 16, 2025. Manually underwritten loans still require 620 for fixed rates and 640 for ARMs. Individual lenders can keep stricter requirements, which is why some loan officers still quote 620.

Q: Can I use my Indian CIBIL score for a US mortgage?
A: Not as a substitute for a US score. But Fannie's guide requires lenders to use foreign credit references for non-citizens lacking enough US credit, so a CIBIL report or foreign references can support a nontraditional credit file. Lenders vary in how they handle this.

Q: How many months of rent do I need for DU to count it?
A: Twelve months of rent of at least $300 per month, verified through the credit report or a 12-month asset verification report. At least one borrower must have rented for 12+ months with no mortgage and a limited or no credit score. It only helps; it won't hurt.

Q: Is FHA an option if I have no credit score?
A: FHA has its own credit rules, and it's only open to US citizens, permanent residents and certain Compact citizens as of October 2026. H-1B, L-1, EAD-only and other non-permanent residents can't use FHA, so the Fannie Mae and Freddie Mac paths are usually the relevant ones.

Find a lender that lets DU decide

A thin US credit file isn't the same as bad credit, and the 2025 change finally lets the underwriting system see the difference. Our side-by-side lender overlay comparison shows which of our 150+ wholesale lenders accept no-score or thin-file DU approvals, what each wants for rent and foreign credit documentation, and what your payment looks like. We work with new immigrants every week and are licensed nationwide. Have 12 months of rent proof, your US credit report and any home-country credit report ready. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.