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Fannie Mae is revising the eligibility matrix used for manually underwritten mortgages, giving lenders until February 22, 2027, to prepare for changes affecting credit scores, cash reserves and several loan programs.
The government-sponsored enterprise published Lender Letter LL-2026-09 on November 4. The revised requirements apply to loans delivered to Fannie Mae on or after February 22, 2027—not necessarily every mortgage application submitted on that date.
What is changing
The lender letter says Fannie Mae is aligning minimum credit-score requirements for fixed-rate and adjustable-rate manually underwritten loans. It also establishes more consistent credit-score and reserve requirements for purchases or refinances involving two- to four-unit principal residences and for cash-out refinance transactions.
Rather than requiring lenders to piece together separate program rules, Fannie Mae is consolidating manual underwriting requirements for standard mortgages, HomeReady and HomeStyle Renovation loans into one matrix.
One important limitation remains: HomeReady and HomeStyle Renovation loans are eligible for manual underwriting only for purchase and limited cash-out refinance transactions. The announcement does not expand those programs to all cash-out refinance loans.
Classic FICO and VantageScore 4.0
For manually underwritten loans, the revised matrix recognizes both Classic FICO and VantageScore 4.0. Fannie Mae says the same minimum credit-score requirements apply to both models. That is a specific policy change, not a promise that any borrower with a particular score will qualify. Loan-to-value ratios, reserves, debt-to-income ratios, occupancy and other eligibility conditions still matter.
Fannie Mae’s separate November 4 Selling Guide announcement also extends VantageScore 4.0 to manually underwritten loans and Desktop Underwriter Version 12.1. Lenders should evaluate the two announcements together, rather than treating them as unrelated credit-scoring changes.
What lenders need to do
Mortgage lenders will need to compare the revised matrix with current overlays and operational rules, train underwriting and quality-control teams, and verify which loans will be delivered on or after the effective date. A loan originated before February 22 could still be subject to the new matrix if delivered on or after that date.
The letter says the public Eligibility Matrix will be updated when the changes take effect. Until then, the November 4 lender letter and its revised requirements are the controlling announcement for implementation planning.
Borrowers should not interpret this update as the elimination of credit standards or automatic loan approval. Its practical impact will depend on the individual mortgage scenario and lender execution.
Simple Content Summary
Fannie Mae announced manual underwriting eligibility revisions on November 4, 2026. Starting with loans delivered February 22, 2027, its revised matrix aligns credit-score requirements for fixed-rate and adjustable-rate loans, standardizes certain reserve and score rules, and consolidates standard, HomeReady and HomeStyle Renovation requirements. Both Classic FICO and VantageScore 4.0 are addressed.
Illustrative photo by Jakub Żerdzicki via Unsplash.
