What Fannie Mae’s New Credit Score Policy Means for San Antonio Homebuyers
Learn how this change affects San Antonio homebuyers and how FHA loans compare. New Horizons Lending helps you choose the best loan path.
What Fannie Mae’s New Credit Score Policy Means for San Antonio Homebuyers
For years, many hopeful homebuyers in San Antonio hit the same wall: the 620 minimum credit score required for conventional loans backed by Fannie Mae. Even buyers with steady income, good payment habits, and the ability to afford a mortgage would often get turned away if their score didn’t meet that threshold. Now that barrier is changing in a way that opens real opportunity for more families across the city.
Starting November 16, 2025, Fannie Mae is removing its hard 620 credit score cutoff. Instead of relying on a single number, its Desktop Underwriter® system will evaluate borrowers using a more complete financial snapshot, looking at payment patterns, income stability, cash flow, and overall financial behavior. This is especially meaningful for San Antonio buyers who’ve been responsible with their money but have thin credit files, limited credit history, or past credit challenges that don’t reflect their current financial reality.
For a growing, competitive market like San Antonio, where families, service workers, teachers, medical professionals, and first-time homebuyers move quickly to secure the right home, this shift provides access that didn’t previously exist. It allows more buyers to be considered for conventional loans that may offer better long-term affordability, lower mortgage insurance costs, and more flexibility with property types.
The way the new system evaluates buyers means your financial story matters more than a single score. Timely rent payments, consistent utility or subscription payments, steady work history, and responsible bank account activity all begin to count in ways credit scoring models typically overlook. That gives many San Antonio buyers a stronger path into homeownership, even if their score isn’t perfect.
This shift also changes how buyers compare conventional loans and FHA loans. FHA loans have long been the go-to option for San Antonio buyers with lower credit, because they allow scores as low as 580 with a 3.5% down payment and have flexible approval guidelines. For buyers who are rebuilding credit or juggling old medical debt, FHA still offers one of the most reliable routes into a home, especially when combined with local or statewide down payment assistance.
But now, with Fannie Mae opening its doors wider, more borrowers will be able to choose between FHA and conventional based on what benefits them most, rather than being limited by a hard score requirement. A buyer who previously felt stuck with FHA might now qualify for a conventional loan that offers lower long-term costs. Another buyer may find FHA still provides the stability and flexibility they need while they continue strengthening their credit.
In fast-growing areas like Helotes, Alamo Ranch, Stone Oak, Live Oak, and the Northeast corridor, these expanded options can make a real difference. More flexible credit standards mean more San Antonio buyers can enter the market sooner, stay competitive with stronger loan options, and finally move into neighborhoods that once felt out of reach.
If you’re unsure where you stand, that’s exactly where we step in. At New Horizons Lending, we help San Antonio buyers compare FHA and conventional options, understand how the new rules affect their unique situation, and build a personalized plan toward approval. Whether you’re ready to buy now or preparing for next year, this new change puts more possibilities on the table, and we’re here to help you make the most of them.
Ready to see which loan fits your financial story?
Connect with New Horizons Lending today, and let’s explore your options together.