VantageScore 4.0 Now Available to More Mortgage Lenders
NAR says more credit scoring options could lower costs, improve efficiency and help more qualified buyers access mortgage financing.
Fannie Mae and Freddie Mac now allow all approved single-family lenders to use VantageScore 4.0. The option applies to eligible loans that lenders sell to the two enterprises. The expanded availability follows a limited rollout earlier this year. It builds on the Federal Housing Finance Agency’s (FHFA) 2025 decision to allow an alternative to Classic FICO.
The Federal Housing Administration (FHA) has also announced plans to accept VantageScore 4.0 and FICO Score 10T. The change applies to eligible FHA-insured mortgages with case numbers assigned on or after January 1, 2027.
The National Association of REALTORS® welcomed the change, citing its potential to broaden access to mortgage financing. The updated models may help more buyers qualify for a mortgage, particularly those with limited traditional credit histories.
“The Federal Housing Finance Agency’s announcement marks an important step forward in modernizing the mortgage marketplace,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “For years, the National Association of REALTORS® has advocated for a more competitive and innovative credit scoring system, one that better reflects how consumers manage their financial lives today.”
A Broader View of Credit History
Equifax, Experian and TransUnion created VantageScore 4.0 to evaluate credit behavior over time. The model can also consider rental, utility and telecommunications payments when that information appears in a consumer’s credit report. These payments have historically received less consideration in credit scoring. Including that information could benefit consumers who consistently make those payments on time.
“Introducing competition into the credit scoring process has the potential to lower costs, improve efficiency and open the door to qualified borrowers who may have been overlooked under older models,” McGahn says. “By allowing multiple credit scoring models that consider rent, utility and other payment histories, this policy can provide a fuller picture of a borrower’s creditworthiness and open the door to homeownership for more Americans.”
NAR says additional credit scoring models could encourage competition within the credit reporting industry. They could also improve accuracy and reduce costs. The association will continue to monitor the experiences of lenders and consumers as these models roll out. It will also evaluate their effects on credit access, underwriting accuracy and consistency, and the broader homeownership market.
What MetroTex Members Should Know
For MetroTex members, this is an opportunity to check in with lending partners about the credit scoring options they offer. Ask how these changes could affect buyers with limited traditional credit histories.
The expanded availability does not mean every lender has switched to VantageScore 4.0. Lenders may continue using Classic FICO for eligible loans they sell to Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac also plan to accept FICO Score 10T in the future. However, they do not yet accept loan deliveries using that model.
For more information, review FHFA’s credit score updates and frequently asked questions.