How to Get Pre-Approved for a Mortgage in 2025 (Even with 620 Credit)
Meta: 2025 mortgage pre-approval guide—new Fannie Mae DU rules (no 620 floor), typical 30–60 day letters, and steps to qualify even with fair credit.
TL;DR Summary (Updated Nov. 10, 2025):
- Conventional: Fannie Mae’s DU and Freddie Mac’s LPA now assess overall credit risk—no hard 620 minimum for DU/LPA “Accept” decisions starting Nov. 16, 2025 (lender overlays may still apply).
- Pre-approval letters: Most lenders issue 30–60 days; some allow up to 90 days.
- Improve approval odds by lowering DTI, showing reserves, and comparing at least 3 lenders.
- FHA/VA/USDA remain options if your profile benefits from those programs.
- Lock strategically; rates can change daily. Get updated letters if your finances change.
Editor’s Note: This article was corrected to reflect: (1) Fannie Mae’s removal of the 620 minimum score in DU effective Nov. 16, 2025, and Freddie Mac’s LPA not requiring a minimum Indicator Score for “Accept” loans; (2) typical pre-approval validity is 30–60 days (some lenders 90 days); and (3) example rate updated to current averages.
Getting pre-approved in 2025 is the smartest way to shop for a home with confidence—especially if your credit is around 620. Lenders look at far more than a single number: income stability, debt-to-income (DTI)
What Changed in 2025? (Conventional Loan Rules)
Big update: For loans run through Fannie Mae’s Desktop Underwriter (DU), the long-standing 620 minimum score is being removed for new casefiles created on or after Nov. 16, 2025. DU will use a holistic credit risk assessment instead of a hard score floor. Freddie Mac’s Loan Product Advisor (LPA) similarly does not require a minimum Indicator Score on loans that receive an “Accept” decision. Individual lenders may still apply their own overlays.
What this means for you
- A score below 620 can be approved if your overall risk (DTI, payment history, reserves, LTV, etc.) is strong.
- Shopping multiple lenders matters more than ever—overlays differ.
- Non-traditional credit and compensating factors may carry more weight.
Pre-Qualification vs. Pre-Approval
| Feature |
Pre-Qualification |
Pre-Approval |
| Verification |
Self-reported |
Documents + hard credit pull |
| Strength with sellers |
Low |
High (conditional commitment) |
| Typical validity |
N/A |
30–60 days (some lenders 90) |
How Long Does a Pre-Approval Last in 2025?
Plan for 30–60 days as the norm; some lenders issue 90-day letters. If your letter expires, you can renew by providing refreshed pay stubs, bank statements, and an updated credit check.
Minimum Credit Scores by Program (Context)
- Conventional (DU/LPA): No DU hard minimum as of Nov. 16, 2025; LPA “Accept” doesn’t require a minimum Indicator Score. Lenders may impose overlays.
- FHA: 580+ for 3.5% down (lender overlays common); 500–579 with 10% down.
- VA: No official minimum; many lenders target 620+ but may approve lower with strong compensating factors.
- USDA: Automated approvals often at 640+, but manual underwriting may allow lower with strong files.
Step-by-Step: Getting Pre-Approved (Even Near 620)
- Check your credit: Pull reports and scores; fix errors. Keep utilization <30%.
- Know your DTI: Many lenders prefer ≤43% (lower is better).
- Gather docs: 30 days of pay stubs, last 2 years W-2/1099 + tax returns, 2 months of bank statements, ID, and asset statements.
- Compare at least 3 lenders: Banks, credit unions, and online lenders price differently and apply different overlays.
- Apply + credit pull: Within a 45-day “rate-shopping window,” multiple mortgage pulls usually count as one on your score.
- Review options: Conventional vs. FHA/VA/USDA; points vs. no points; rate locks and float-down features.
2025 Rate Snapshot & Example
Recent averages put 30-year FHA rates around the mid-6% range nationally. For illustration, a buyer purchasing a $350,000 home with 3.5% down (loan ≈ $337,250) at ~6.08% fixed for 30 years would pay roughly $2,040/month in principal & interest (excludes FHA mortgage insurance, taxes, and homeowners insurance). Your actual rate depends on credit, DTI, reserves, points, and lender pricing.
Lender Comparison: Pre-Approval Experience
| Lender Type |
Best For |
Typical Letter Window |
Highlights |
| Online lenders |
Speed & transparency |
30–60 days |
Instant docs, digital rate locks, competitive pricing |
| Banks |
Bundled banking perks |
30–60 days (sometimes 90) |
Relationship discounts, in-branch support |
| Credit unions |
Member-friendly terms |
30–60 days |
Lower fees, flexible underwriting |
How to Strengthen a 620-ish File Fast
- Lower utilization: Pay cards down before the statement closes.
- Boost reserves: Aim for 2–6 months of total housing payments in savings.
- Stabilize income: Two-year history in the same field helps.
- Avoid new debt: No new credit lines 60–90 days before applying.
- Consider points: Paying points can lower your rate and DTI.
FAQs (2025)
Is 620 still the minimum for conventional loans?
No. For DU casefiles created on/after Nov. 16, 2025, there’s no hard 620 floor; DU uses a holistic risk assessment. Freddie Mac’s LPA “Accept” likewise doesn’t require a minimum Indicator Score. Lenders may still set overlays.
How long is a pre-approval good for?
Typically 30–60 days. Some lenders extend to 90 days. If your letter expires—or your finances change—get it refreshed before making offers.
Will pre-approval hurt my credit?
A hard inquiry may lower your score a few points temporarily. Multiple mortgage inquiries within ~45 days usually count as one for scoring.
Can I switch programs after pre-approval?
Yes—your lender can re-run DU/LPA or quote FHA/VA/USDA based on your goals and updated docs.
Action Plan
- Pull credit and fix errors.
- Target DTI ≤ 43%; pay down revolving balances.
- Save closing costs + 2–6 months reserves.
- Collect docs and apply with 3+ lenders on the same week.
- Lock strategically; ask about float-down options.
Sources / Official References:
Disclaimer: This article is for educational purposes only and isn’t financial, legal, or lending advice. Rates and policies change frequently. Consult a licensed mortgage professional or housing counselor for personalized guidance.
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