Mortgage lenders gain approval to use VantageScore 4.0 and FICO 10T
Updated
Updated · CNBC · May 5
Mortgage lenders gain approval to use VantageScore 4.0 and FICO 10T
11 articles · Updated · CNBC · May 5
The change covers loans sold to Fannie Mae and Freddie Mac, with FHA set to follow; 21 large lenders are in the first VantageScore 4.0 wave.
Officials said Freddie Mac has already bought $10 million of loans approved with VantageScore 4.0, ending decades in which classic FICO was the only approved mortgage score.
The newer models can use rent, utility and 24-month trended credit data, potentially helping thin-file borrowers, though most renters' payment histories still are not reported to credit bureaus.
Rent payments now affect mortgage scores. Is this a ladder to homeownership or a new financial trap?
Lenders now analyze 24 months of your spending. What is the new secret to proving you are mortgage-worthy?
Do new flexible mortgage scores expand homeownership, or do they hide risks that could destabilize the market?
How New Credit Score Models (VantageScore 4.0 & FICO 10T) Are Transforming U.S. Mortgage Lending in 2026
Overview
In April 2026, U.S. mortgage lending entered a new era as the FHA, Fannie Mae, and Freddie Mac began accepting VantageScore 4.0 and FICO Score 10T for mortgage underwriting. This shift moves away from the old FICO Classic scores and aims to modernize credit assessment. The new models are designed to foster competition in the credit scoring industry, lower costs for both lenders and borrowers, and expand access to homeownership. By reshaping how borrower creditworthiness is evaluated, these changes especially help creditworthy individuals who were previously overlooked, making the mortgage process more inclusive and equitable.