Big Shifts in Lending: Credit Scores, 50 Year Mortgages and What’s Next

A few major updates are shaking up the mortgage and real estate world, and if you’re planning to buy, sell, or refinance in 2025 and beyond, you need to know what’s coming.

Let’s break it all down, Bay Area style.

1. Credit Score Requirement Just Got Lowered

For years, 620 was the magic number.

But starting soon, certain loan programs backed by Fannie Mae and Freddie Mac will allow qualifying borrowers with scores below 620 to be considered, especially if other factors like consistent rent or utility payments support your ability to repay.

Why it matters:

• First time buyers may have more access

• Lenders will use new credit models (FICO 10T and VantageScore 4.0)

• On time rent, phone, and utility payments will now boost your profile

This doesn’t mean everyone with a low score gets approved, but it does mean credit flexibility is expanding for the first time in a while.

2. The 50 Year Mortgage Is Being Discussed (For Real)

Federal housing leaders are actively exploring a 50 year mortgage option, aimed at easing affordability for buyers in high cost markets like ours.

What it means:

• Lower monthly payments

• Equity build up will be slower

• Total interest paid will be much higher

It’s not here yet, but if approved, it could reshape what “affordable” looks like in Contra Costa County and beyond.

3. Other Headlines Worth Watching

🧾 Down payment requirements are shifting
Lenders are quietly offering new options for buyers with limited cash reserves.

🏘️ Inventory is ticking up
Cities like Concord, Pittsburg, and Vallejo are seeing more listings, which means less competition especially this fall.

📉 Refinance opportunities may return in 2025
If inflation continues to ease and rates drop as projected, more homeowners may find new refinance windows.

What This Means for You

The rules are changing, but smart strategy still wins.

Whether you’re rebuilding credit, looking for a creative path to homeownership, or trying to sell without leaving money on the table

👉 Now’s the time to get clear on your next move.

Let’s Run the Numbers

No guesswork. No sales pitch. Just real talk and real options.

Want to talk strategy for your next move?
Schedule a free call and let’s walk through your options together.