United Wholesale Mortgage Drops Minimum Credit Score Requirement on Agency Loans
Effective immediately, eligibility for UWM's Fannie Mae, Freddie Mac, FHA, VA and USDA loans will be determined by automated underwriting system findings rather than a fixed credit score floor — though scores still factor into pricing.
PONTIAC, Mich. — United Wholesale Mortgage, the country's largest wholesale mortgage lender, said it has removed its minimum credit score overlay for agency loans effective immediately. Borrowers seeking conventional loans backed by Fannie Mae or Freddie Mac, or government-backed FHA, VA and USDA loans, will now be evaluated based on findings from the automated underwriting system rather than a set minimum score threshold.
An overlay is a lender-imposed requirement that is stricter than what Fannie Mae, Freddie Mac, or the relevant government agency itself requires. Removing the credit score overlay means UWM will approve agency loans that clear the automated system's criteria even if the borrower's score would have fallen below the lender's own prior floor. The company said credit scores still factor into pricing, including loan-level price adjustors, so borrowers with lower scores can expect to pay more even where they now qualify.
The change does not extend to UWM's non-agency products — jumbo loans, Bank Statement loans for self-employed borrowers, and Investor Flex loans for real estate investors — which retain their own minimum credit score requirements. The move comes as mortgage applications have been falling alongside a three-year high in 30-year fixed rates, which have climbed to roughly 7.5%, putting pressure on lenders to find other ways to keep loan volume moving.