There's no universal credit score to get a second-home loan, but you might need a higher score than if you're buying a primary residence.
Fannie Mae removed its fixed minimum credit score requirement for loans evaluated through Desktop Underwriter in November 2025. Your lender will still review your credit history, debts, income, assets and the rest of your application, and individual lenders can set additional credit requirements.
Second Home Credit Score Basics
| Question |
What It Means for You |
| Does Fannie Mae require a specific minimum score? |
No fixed minimum applies to new loans evaluated through Desktop Underwriter. |
| Does your credit score still matter? |
Yes. Credit scores are still obtained and can affect mortgage pricing. |
| Does DU look at your credit history? |
Yes. DU evaluates credit risk using information from your credit report along with other details in your application. |
| Can a lender require a certain score? |
Yes. Lenders can have additional underwriting requirements. |
| Can your score affect your rate? |
Yes. Conventional mortgage pricing can vary based on your credit score and loan-to-value ratio. |
A credit score is only one part of qualifying. You also need to meet the other second-home mortgage requirements for income, debts, down payment, reserves, occupancy and property eligibility.
Fannie Mae No Longer Has a Fixed DU Minimum Credit Score
You may still see articles claiming that you need a 620, 680 or 720 credit score to buy a second home. Those numbers should not be presented as a universal current Fannie Mae rule.
Fannie Mae changed its Desktop Underwriter requirements in November 2025. Fannie Mae explains that DU no longer requires a minimum third-party credit score. Instead, DU uses its own credit-risk assessment to determine whether the loan meets Fannie Mae's minimum credit-risk standard.
This is particularly relevant for second homes because Fannie Mae generally requires loans secured by second homes to be underwritten through DU and receive an Approve/Eligible recommendation.
Removing the fixed score cutoff does not mean credit has been removed from underwriting. DU evaluates information from your credit report along with other risk factors in your mortgage application.
Why Does Your Credit Score Still Matter?
Your score may no longer serve as a universal Fannie Mae eligibility cutoff in DU, but it can still affect your mortgage in several ways.
Your Credit History Is Still Part of Underwriting
DU evaluates how you have handled credit rather than simply checking whether your score clears one number.
Your credit report can include information about your account balances, payment history, delinquencies and other credit obligations. Serious derogatory events such as a foreclosure or bankruptcy can also have separate eligibility requirements.
A borrower with a lower score and a strong overall file is therefore not automatically treated the same as another borrower with the same score but recent missed payments or other significant credit problems.
Your Credit Score Can Affect Mortgage Pricing
Fannie Mae still uses credit scores when determining certain loan-level price adjustments, or LLPAs.
The current Fannie Mae pricing matrix includes different adjustments based on combinations of credit score and loan-to-value ratio. Second homes can also receive an additional pricing adjustment based on LTV.
Those fees do not translate into a fixed interest-rate surcharge. The lender can reflect mortgage pricing through the interest rate, upfront points or a combination of both.
That is why your credit can affect the mortgage rate and pricing available on a second home even though Fannie Mae no longer uses a single minimum DU score.
Why Do You Still See 680 or 720 Credit Score Requirements?
There are a few reasons you may still see specific credit-score numbers attached to second-home mortgages.
Some Information Is Outdated
Fannie Mae previously used fixed minimum credit score requirements in DU. It removed those requirements for new casefiles beginning in November 2025.
The same update also removed the previous 720 minimum representative credit score for borrowers with seven to 10 financed properties who were financing a second home or investment property through DU.
Older mortgage articles and lender materials may still reflect rules that applied before those changes.
Lenders Can Have Their Own Requirements
Fannie Mae establishes standards for mortgages it will purchase or securitize. A lender does not necessarily have to approve every loan that meets those baseline standards.
A lender may establish additional underwriting criteria based on its own risk management or loan programs. These are often called lender overlays.
That means a lender could require a particular score even though that number is not a universal Fannie Mae second-home minimum.
When you see a specific credit-score requirement, the useful question is whether it comes from Fannie Mae's current rules or from the individual lender.
How Do Your Credit Score and Down Payment Work Together?
Your credit and down payment can both affect conventional mortgage pricing.
You may be able to buy an eligible one-unit second home with as little as 10% down. Putting 10% down produces a 90% loan-to-value ratio, while putting 20% down produces an 80% LTV.
Fannie Mae's pricing matrix considers both credit score and LTV. As a result, two borrowers with the same score can receive different loan pricing when they make different down payments.
A larger down payment can also reduce your starting loan balance and, at 20% down, generally eliminate the need for borrower-paid private mortgage insurance on a conventional loan.
The amount you put down on a second home should therefore be considered alongside your credit rather than as a completely separate qualification factor.
Can You Buy a Second Home With Lower Credit?
Potentially. There is no single score below which every DU-underwritten second-home mortgage automatically becomes ineligible under Fannie Mae's current rules.
But removing the hard minimum does not mean every borrower with a low score will receive an Approve/Eligible recommendation.
DU evaluates the overall risk of the loan. Your credit history is considered alongside factors such as your income, debts, assets, down payment and other characteristics of the transaction.
A lender can also apply its own minimum score or other credit standards.
This makes it more accurate to think of credit as one part of your complete mortgage profile rather than as a pass-or-fail number by itself.
What if You Don't Have a Credit Score?
Having no credit score is different from having a low credit score.
Fannie Mae allows some loans to be evaluated through DU when a borrower does not have a traditional credit score. If at least one borrower has a credit or installment account reported on the credit report, DU can evaluate the reported credit under its standard eligibility guidelines.
Additional restrictions can apply when none of the borrowers have a score and none have a reported credit or installment account. Those transactions are generally limited to principal residences, which means they would not provide the same pathway for a second-home purchase.
Fannie Mae may also require lenders to document nontraditional credit in certain no-score situations.
Does Having Another Mortgage Affect Your Approval?
Having a mortgage on your primary residence does not automatically prevent you from financing a second home.
Your lender does, however, generally need to account for your existing housing payment when evaluating your debts. The payment on the proposed second home is then added to your other qualifying obligations.
That means a borrower with excellent credit could still have difficulty qualifying if the combination of two mortgages and other debts is too large relative to qualifying income.
You may also need additional assets after closing. Fannie Mae generally requires at least two months of reserves for a DU second-home transaction, with additional requirements possible when you own multiple financed properties.
If you are carrying your primary mortgage into the new purchase, qualifying for a second home while you already have a mortgage depends on much more than your credit score alone.
How Can You Strengthen a Second Home Mortgage Application?
If your credit profile is making qualification or pricing more difficult, improving the rest of the application may help, although no individual change guarantees approval.
Reduce Credit Card and Other Debt
Lower recurring debt can improve your DTI and may also reduce credit utilization, which can affect credit scores.
Consider a Larger Down Payment
A larger down payment reduces your LTV and the amount you need to borrow. LTV also interacts with credit score in conventional mortgage pricing.
Keep More Assets Available After Closing
Second-home loans generally require financial reserves. Having additional documented assets may also strengthen the overall financial profile evaluated by DU.
The minimum reserve requirement for a second home is separate from the money needed for your down payment and closing costs.
Avoid New Debt Before Closing
Opening new credit or increasing existing balances can change your debts and credit profile while the mortgage is being underwritten. A new monthly payment can also increase your DTI.
The Bottom Line
There is no longer one Fannie Mae minimum credit score that every second-home borrower must reach for a loan evaluated through Desktop Underwriter.
Your credit still matters. DU evaluates the information in your credit history, lenders can establish additional standards, and your credit score can affect conventional mortgage pricing.
Instead of focusing only on whether your score clears a specific number, consider the full application. Your down payment, income, existing debts, financial reserves and credit history all contribute to whether you qualify and what the mortgage ultimately costs.
FAQ
What Credit Score Do You Need to Buy a Second Home?
There is no fixed Fannie Mae minimum credit score for a second-home mortgage evaluated through Desktop Underwriter. DU evaluates the overall credit risk of the application instead. Individual lenders can still establish their own credit-score requirements.
Do You Need a 680 Credit Score for a Second Home?
Not as a universal Fannie Mae rule. You may encounter lenders that require a 680 score or another minimum, but Fannie Mae no longer sets a fixed minimum score for DU-underwritten second-home loans.
Do You Need a 720 Credit Score to Buy a Second Home?
No universal 720 minimum applies to a Fannie Mae second-home loan evaluated through DU. Fannie Mae also removed its previous 720 requirement for borrowers with seven to 10 financed properties in its November 2025 DU update. A lender can still impose its own requirements.
Can You Buy a Second Home With Bad Credit?
Possibly, but approval depends on the complete loan file. DU considers your credit history along with income, debts, assets, down payment and other risk factors. A lender can also have additional credit standards. There is no guarantee that a borrower will qualify simply because Fannie Mae does not set a fixed DU minimum score.
Does a Higher Credit Score Lower Your Second Home Mortgage Rate?
A higher credit score can improve conventional mortgage pricing, but there is no fixed amount by which your rate drops at a particular score. Fannie Mae's pricing adjustments consider credit score together with LTV and other loan characteristics, and lenders determine how those costs are reflected in the rate and upfront pricing.
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