2 min read credit score

Do Fannie Mae and Freddie Mac Have a Minimum Credit Score?

Do Fannie Mae and Freddie Mac Have a Minimum Credit Score?


Short Answer:

Not any more.

Longer Answer:

The simple answer: No, Fannie Mae and Freddie Mac do not have one single published minimum credit score that guarantees approval. Conventional approvals are typically driven by automated underwriting and the overall risk profile of the loan, not just one score number.

What actually matters instead of a “minimum score”

Conventional loan eligibility is usually evaluated based on a combination of factors like:

  • Credit history and score
  • Down payment (loan-to-value)
  • Debt-to-income ratio (DTI)
  • Income stability and reserves
  • Property and occupancy details

So while there is not one universal “minimum score,” credit still plays a major role in your cost and sometimes your approval outcome.

Is it a “blended average” credit score?

In many cases, lenders look at credit scores for each borrower and apply standard qualifying rules. People often describe this as a “blend,” but here is the key point for homebuyers:

Even when you qualify, the lower of the two borrowers’ scores often drives pricing.

That means if one borrower has a strong score and the other is lower, you can still get approved, but you may see higher costs.

Why the lower score can raise your interest rate

Mortgage pricing is risk-based. A lower score can lead to:

  • Higher interest rate, or
  • More cost to buy down the rate (discount points)

Bottom line: the goal is not just to qualify, it is to qualify on the best terms.

Why the lower score can raise your mortgage insurance (MI)

If you put less than 20% down, conventional loans typically require private mortgage insurance (PMI/MI).

MI pricing often depends heavily on:

  • Credit score
  • Down payment percentage
  • Debt to Income Ratio
  • Loan Term

So a lower score can increase your MI payment, sometimes significantly, even if the other borrower has excellent credit.

The Smart Way to Approach This With a Loan Officer

To get a clear answer for your situation, ask your loan officer to run side-by-side scenarios such as:

  • Both borrowers on the loan vs. one borrower
  • Different down payments (5% vs. 10% vs. 20%)
  • Rate options with lender credit vs. points
  • MI comparisons at different score tiers

That is where you will see the real impact of the “lower score drives pricing."

Common Questions Homebuyers Ask

“If there’s no minimum credit score, can I get a mortgage with bad credit?”

Possibly, but conventional may not be the best fit. FHA, for example, can be more forgiving depending on the scenario. The right program depends on your score, down payment, DTI, and goals.

“Should I remove a lower-score co-borrower to get a better rate?”

Sometimes, but it depends on whether you still qualify on income and DTI with one borrower. Removing someone can also affect assets, reserves, and occupancy considerations. This is a strategy conversation worth having early.

Conculsion:

Fannie Mae and Freddie Mac do not have a simple, universal minimum credit score requirement. But your score still matters, and on a two-borrower loan, the lower score can drive the interest rate and MI cost.

If you want, share your estimated score ranges, down payment, and purchase price, and I can help you map out what will likely have the biggest impact on rate and MI in your scenario.

Disclaimer: This is general information, not legal or tax advice. Final loan terms and approvals depend on your lender’s guidelines, investor requirements, and current underwriting findings.