A credit score can influence your mortgage options, but it cannot tell you on its own whether you can buy a home. The loan program, your income, existing debt, down payment and the property itself all matter.

That distinction is especially useful in San Francisco, where the amount you need to borrow can put you in a different lending category. As mortgage credit scoring changes, buyers should understand both which rules have changed and which requirements still apply.

There Is No Universal Credit Score Requirement

The familiar 620 benchmark is not a minimum for every mortgage.

Fannie Mae’s current guidelines distinguish between loans evaluated through Desktop Underwriter, its automated underwriting system, and loans reviewed manually. Desktop Underwriter does not require a minimum credit score. For manually underwritten loans, Fannie Mae generally specifies at least 620 for fixed-rate mortgages and 640 for adjustable-rate mortgages, subject to additional requirements and exceptions. Fannie Mae

Removing an automated system’s minimum score does not remove credit review. Fannie Mae still evaluates the borrower’s financial profile, and lenders must follow applicable credit reporting requirements. Fannie Mae also expects removing this threshold to have a negligible effect on the number of applications receiving an eligible approval recommendation. Fannie Mae

The practical lesson: a score below a familiar cutoff is a reason to ask about your options, not proof that you qualify or that you cannot qualify. Your lender needs to evaluate the specific loan and your complete application.

New Scoring Models Are Arriving, but Availability Matters

As of November 4, 2026, approved lenders can use either Classic FICO or VantageScore 4.0 when originating eligible loans for sale to Fannie Mae and Freddie Mac. FICO 10T has also been approved, but it is not yet eligible for loan delivery to those agencies. FHFA

Those distinctions matter. Approval of a scoring model does not mean every lender uses it or every mortgage program accepts it.

The score displayed in a consumer app may also differ from the score used for your mortgage. Different models, credit bureau information and calculation dates can produce different results. An app can help you monitor your credit, but its number is not a mortgage approval decision. Consumer Financial Protection Bureau

Ask your loan officer which scoring model applies to your application and how your credit profile affects both eligibility and pricing. A newer model does not automatically mean a higher score, a lower rate or an approval.

In San Francisco, Start With the Loan Amount

For 2026, San Francisco County’s conforming loan limit for a one-unit property is $1,249,125. This is a limit on the mortgage amount, not the purchase price. fhfa.gov

For example, a $1.5 million purchase with a 20% down payment would require a $1.2 million mortgage, below that county limit. The same purchase with 10% down would require $1.35 million, above it. These examples illustrate loan size only; they do not establish eligibility.

A conventional mortgage above the local conforming limit generally falls into the jumbo category. Jumbo lenders set their own program requirements, so changes affecting Fannie Mae and Freddie Mac loans should not be assumed to apply to a jumbo application. Consumer Financial Protection Bureau

For a San Francisco condo purchase, budget for HOA dues alongside principal, interest, property taxes and insurance. HOA dues are typically paid separately from the mortgage payment. Include them when deciding what monthly housing cost feels comfortable. Consumer Financial Protection Bureau

Prepare Your Credit Before You Make an Offer

The most useful steps remain straightforward:

• Review your credit reports through AnnualCreditReport.com and dispute inaccurate information.
• Make payments on time and work on reducing outstanding credit card balances.
• Avoid opening several new credit accounts as you prepare to apply.
• Ask a lender to review your borrowing options before setting your home search budget. Consumer Advice

Checking your own credit does not lower your scores. It gives you an opportunity to identify problems before a lender evaluates your application. Consumer Financial Protection Bureau

Build Your Home Search Around a Clearer Financing Picture

You do not need to interpret changing mortgage rules alone. Start with a loan officer who can explain the programs available to you, the likely costs and any steps that could strengthen your application.

If you are considering buying in San Francisco, contact Rick Kaluza to discuss your home search and coordinate the next steps with your mortgage professional. Understanding your financing early makes it easier to focus on properties that fit your needs and budget.

 

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Source: keepingcurrentmatters.com