I have been hearing a lot lately from buyers who think something major changed with credit score requirements this year. The short answer is no, there was no big overhaul that suddenly made it easier to qualify for a mortgage. If your credit was a problem last year, it is still a factor today.
That said, there have been a couple of changes on the conventional loan side that are worth understanding, especially if you are close to qualifying. They are not game changers for everyone, but they could make a difference for some buyers in the St. Louis market.
The Real Change Happened With Conventional Loans
In 2025, the Federal Housing Finance Agency approved the use of VantageScore 4.0 as an alternative to the traditional FICO model for loans sold to Fannie Mae and Freddie Mac. Not long after that, Fannie Mae updated its automated underwriting system and removed a strict minimum credit score requirement for certain approvals.
Before anyone gets the wrong idea, this does not mean credit scores no longer matter. It also does not mean buyers with low scores can suddenly qualify with ease. What it does mean is that lenders can look at the entire financial picture a little more closely instead of relying as heavily on one number.
In my opinion, this is a positive step, but it is not something buyers should overestimate. A strong credit profile is still one of the most important factors in getting approved and getting a good interest rate.
FHA Loans Are Still the Same
FHA financing continues to be one of the most common options for first-time buyers in St. Louis, and the guidelines have not changed. A 580 credit score is still the benchmark for a 3.5 percent down payment. Scores between 500 and 579 typically require at least 10 percent down.
What many buyers do not realize is that these are minimum program guidelines. Lenders can and often do require higher scores. I see this come up all the time where a buyer thinks they qualify based on FHA rules, but the lender sets the bar a little higher.
VA Loans Still Depend on the Lender
VA loans remain one of the best benefits available for eligible veterans and active-duty service members. There is still no official minimum credit score set by the VA, but that does not mean credit is ignored. Each lender sets its own standards, and those standards can vary.
This is one area where I strongly suggest talking to more than one lender. I have seen buyers told no by one lender and approved by another.
Credit Score Still Impacts What You Can Afford
Even with some added flexibility on conventional loans, credit score still plays a major role in what your loan will cost you. Higher scores generally lead to better interest rates, and lower scores can increase your monthly payment.
In today’s market, that matters more than it did a few years ago. St. Louis is still relatively affordable compared to other parts of the country, but mortgage rates are not low enough to ignore the impact of credit. A small difference in rate can change what you can comfortably afford.
What Buyers Should Actually Focus On
If you are planning to buy a home, the best approach has not changed. Pay your bills on time, keep your credit card balances under control, and review your credit reports for errors. Those basics still go a long way.
I also recommend talking to a lender earlier than you think you need to. Too many buyers wait until they are ready to make an offer, only to find out there is an issue that could have been fixed with a little time.
My Take
There is a lot of noise out there right now about credit scores and qualifying for a mortgage. Some of it makes it sound like things suddenly got easier in 2026. That is not really the case.
There is a little more flexibility on the conventional loan side, and that is a good thing. But credit score still matters, and it is still one of the key pieces of the puzzle. Buyers who understand that and prepare ahead of time are the ones who end up in the best position when the right home comes along.
