Starting November 16, 2025, Fannie Mae is removing the long-standing 620 minimum credit score requirement for loans processed through its Desktop Underwriter (DU) system. What does this mean?
More flexibility. Instead of relying on a single credit score cutoff, DU will now assess a borrower’s full financial picture—credit history, income, debt, property type, and more.
Alternative credit welcomed. Rent, utility, and phone payment histories may now help demonstrate creditworthiness for those without traditional credit.
Expanded access. This change could help first-time buyers, long-time renters, and underserved communities qualify for conventional loans—not just FHA.
Potential savings. Conventional loans often come with lower long-term costs than FHA loans, especially when it comes to mortgage insurance.
Important: Lenders will still pull credit scores, and other underwriting standards remain in place. But this shift marks a major step toward inclusive, holistic lending.
If you’ve been told “you don’t qualify” because of your credit score—this could be your moment. Let’s talk about your options and what this means for your path to homeownership.
DM me or schedule a call to explore what’s possible under the new guidelines.
Sheree
Buyers can save thousands by assuming a seller’s low-interest mortgage—here’s how it works.
If you're shopping for a home in today’s high-interest environment, there's a little-known strategy that could dramatically reduce your monthly payment: mortgage loan assumption. This option allows you to take over a seller’s existing mortgage—often at a much lower interest rate than what lenders are offering now.
?? What Is a Mortgage Loan Assumption?
A mortgage assumption means the buyer takes over the seller’s current mortgage, including the remaining balance, interest rate, and repayment terms. Instead of applying for a new loan at today’s rates (often 7% or higher), you “step into” the seller’s loan—potentially locking in a rate as low as 3–4%.
?? Why It Matters in 2025
With interest rates climbing, assuming a low-rate mortgage can save buyers hundreds of thousands over the life of the loan. For example:
Loan Type
Interest Rate
Monthly Payment
Total Interest Paid
Assumed Loan
3.5%
$1,796
$246,624
New Loan
7.0%
$2.661
$558,360
Savings: $311,736 in interest alone.
? Which Loans Are Assumable?
Not all mortgages qualify. Here are the most common types:
Note: Most conventional loans include a “due-on-sale” clause, making them non-assumable.
?? What’s Required?
To assume a mortgage, buyers typically need:
?? How to Find Assumable Homes
??? Final Thoughts
Mortgage assumptions aren’t just a financial loophole—they’re a strategic way to buy more home for less. If you’re an empty nester, first-time buyer, or relocating to the Catawba Valley market, this could be your ticket to affordability and legacy-building.
?? Want to explore assumable homes in your area? Let’s talk.
Sheree Byrd, Realtor® Faith Parker Properties ?? 828-556-5468
info@shereebyrdrealtor.com