Author Amy Stockberger | Founder, Amy Stockberger Real Estate | Creator, Lifetime Home Support™ Academy | Ranked the #1 Real Estate Team in South Dakota since 2017 and #33 in the Nation by Real Trends
By Amy Stockberger Real Estate
Could an assumption about your credit score be keeping you from buying a home? If you’re considering buying in Sioux Falls, SD, don’t let a number on an app make that decision for you.
Mortgage credit scoring is changing, and there isn’t one universal score that determines whether every buyer qualifies. Understanding what lenders actually evaluate can help you take your next step with more confidence.
Why This Matters in Sioux Falls, SD
Whether you’re considering an established home near McKennan Park or a newer property on the west side, understanding your financing options helps you build a realistic homebuying plan.
Before deciding that homeownership is out of reach, speak with a lender who can review your credit, income, debts, savings, and available loan programs. Your credit score matters, but it is only part of that conversation.
3 Things Homebuyers Should Know About Credit Scores
1. There Isn’t One Credit Score Requirement for Every Mortgage
You may have heard that you need a credit score of 620 to buy a home. That number has been associated with certain conventional mortgage requirements, but it isn’t a universal cutoff.
Fannie Mae removed the minimum credit score requirement for new loan casefiles created through its Desktop Underwriter system beginning November 16, 2025. That change does not guarantee approval: the system still evaluates credit risk, and lenders may apply additional requirements. Other loan programs and underwriting methods have their own rules. singlefamily.fanniemae.com
Your next step: Ask a loan officer which programs fit your financial situation before assuming you cannot qualify.
2. The Score on Your App May Differ From Your Mortgage Score
Credit scores can vary depending on the scoring model, credit bureau, and information available when the score is calculated.
The mortgage industry is expanding its scoring options. Eligible loans sold to Fannie Mae and Freddie Mac can now use VantageScore 4.0 under their requirements, while Classic FICO remains available. FICO 10T has also been approved for future use, but approval and implementation are separate steps; it is not yet eligible for loan delivery to those agencies. FHFA
For buyers in Sioux Falls, SD, that means an app can help you monitor your credit, but it cannot confirm your mortgage eligibility.
Your next step: Ask your lender which scoring model they use and what your results mean for your options.
3. Consistent Credit Habits Still Matter
New scoring models don’t replace the value of managing your credit carefully. Start with these practical steps:
The Consumer Financial Protection Bureau recommends checking your reports, addressing errors, paying bills on time, and reducing credit card debt as part of your homebuying preparation. Checking your own credit does not hurt your scores. Consumer Financial Protection Bureau
How Amy Stockberger Real Estate Can Help
Buying a home involves more than finding a property. You need a plan that connects your budget, financing, moving timeline, and long-term goals.
At Amy Stockberger Real Estate, our Lifetime Home Support™ model provides support before, during, and long after your purchase. Our Home Support Team Partners connect you with local service providers, while moving perks, tool access, and concierge resources help simplify homeownership. Explore our Lifetime Home Support™ program and Home Support Team Partners. Amy Stockberger Real Estate
We can help you prepare for the home search and connect with a mortgage professional who can evaluate your financing options.
Local Resources to Explore
Ready to Take the Next Step?
Get answers before you rule yourself out. If you’re thinking about buying a home in Sioux Falls, SD, contact Amy Stockberger Real Estate to discuss your goals and connect with a lender who can help clarify your next steps.
You may be ready to move forward—or you may need a preparation plan. Either way, knowing where you stand gives you something useful to act on.
Our team is here to serve—before, during, and forever.
Have more questions about real estate in Sioux Falls, SD? Ask our 24/7 Sioux Falls Real Estate Guide AI Assistant.
