Your mortgage lender is now allowed to judge your credit with a different score than the one you may have seen for years. That new score, called VantageScore 4.0, can count on-time rent and utility payments in your favor — which means it may help you qualify for a home loan even if your traditional FICO score looks thin.
The main differences between VantageScore 4.0 and traditional FICO mortgage scores.
How VantageScore 4.0 may help some borrowers who have limited credit history, are younger borrowers, or have strong rent payment histories.
Why this matters -
Imagine two teachers grading the same test. FICO and VantageScore both look at your credit history, but they don't grade it exactly the same way. VantageScore 4.0 was designed to recognize more consumers, including some renters and people with limited credit histories, while traditional mortgage FICO scores rely more heavily on established credit accounts. That means some homebuyers could see a higher score and have an easier path to mortgage approval under VantageScore 4.0. As lenders begin adopting the newer model, understanding both scores could help buyers better prepare for homeownership.
For decades, nearly every mortgage used one scoring system, known as "Classic FICO." Now the Federal Housing Finance Agency (FHFA) — the government agency that oversees Fannie Mae and Freddie Mac, the two companies that buy most U.S. mortgages — has approved newer models. On September 9, 2026, lenders across the country were cleared to use VantageScore 4.0 for loans sold to those two agencies. This change matters because it can alter your score, your rate, and whether you get approved at all.
Here are the essentials to know before we dig into the details.
What is changing with mortgage credit scores?
The biggest shift is that mortgage lenders now have a choice between two approved scoring models instead of being locked into just one. Under the old rules, loans sold to Fannie Mae and Freddie Mac had to use Classic FICO. Under the new interim rules, lenders may use either Classic FICO or VantageScore 4.0 on each loan (FHFA).
On September 9, 2026, the FHFA expanded VantageScore 4.0 to all approved lenders, removing the need for prior written approval. Every Fannie Mae and Freddie Mac lender can now use it when originating and selling eligible loans. Lenders may still use Classic FICO, but the door is open to the newer model — and top lenders like Rocket Mortgage have already adopted it (VantageScore).
The practical effect for you: two different lenders could run your same financial history through two different scoring models and get two different numbers. That's why it helps to understand both — and to know which one may work in your favor.
What are FICO and VantageScore?
Think of a credit score as a summary number that tells a lender how likely you are to pay your bills on time. The score is computed by a model — a set of rules — that reads your credit report and turns it into one number. Two models dominate the market: FICO and VantageScore.
FICO (the Fair Isaac Corporation) has been the standard for mortgage lending for decades. Its "Classic FICO" model is what most borrowers have seen on bank statements and mortgage estimates for years. FICO 10T is the company's newer model, built to be more accurate than the classic version.
VantageScore is a different model created jointly by the three major credit bureaus — Equifax, Experian, and TransUnion. Its newest version, VantageScore 4.0, is designed to include more data than traditional scores. VantageScore says it generates scores for about 94% of U.S. adults — up to 33 million more people than competing models — because it can score people with limited credit history (VantageScore).
Both FICO 10T and VantageScore 4.0 were validated and approved for mortgage use by the FHFA in 2022 after years of testing. The FHFA found both models are more accurate at predicting who is likely to default than the older Classic FICO (FHFA).
Why does the new model count rent and utilities?
The single most important difference between the old and new scores is the data they look at. Classic FICO mostly looked at credit accounts — credit cards, auto loans, and other debts. The newer models add two things that matter a lot to first-time buyers: rent payments and utility payments.
VantageScore 4.0 includes rent and utility payment history in its calculation. That's a big deal because rent is often the largest monthly expense a renter pays. If you've paid your rent on time for years but that history never showed up on your credit report, the old score couldn't see it. The new model can (VantageScore).
This makes the system fairer for people who are financially responsible but don't have much traditional credit — a situation called having a "thin file." A young buyer with no credit cards but a spotless rental record may now get a score where they previously had none.
It's worth checking whether your landlord reports your on-time payments to the credit bureaus. If they don't, some states let you request that those reports be made. VantageScore's own economists note that reporting on-time rent payments may boost some scores by as much as 100 points (VantageScore).
What does trended data mean in plain terms?
"Trended data" is the second big change, and it's easier to understand than it sounds. Older scores looked at your credit report as a single snapshot — like a photo taken today. Trended data looks at 24 months of payment history, so it sees the whole movie, not just one frame.
With a snapshot, a single late payment can dominate the picture. With a 24-month view, the model can tell whether you're on the way up or on the way down. If you fell behind two years ago but have paid perfectly since, the trended model sees improvement and rewards it. VantageScore 4.0 includes this trended view alongside rent and utility data (VantageScore).
This matters because it better reflects how people actually behave. Someone recovering from a rough patch — a job loss, a medical bill, a divorce — can show the new model that they've rebuilt their habits. The FHFA has said these newer models are more predictive of default risk, which means the score better matches reality for borrowers who are improving (FHFA).
What should buyers and agents tell their clients?
The new scoring models create new talking points for agents and new homework for buyers. If you're a first-time buyer, here's what to focus on before you apply for a mortgage.
First, know which score your lender runs. When you ask about a pre-approval, ask whether the loan will be scored with VantageScore 4.0 or Classic FICO. Since each loan can use either model, the answer affects what number you'll be evaluated on.
Second, check whether your rent is reported. Contact your landlord or property manager and ask if they report on-time rent payments to the credit bureaus. If they don't, ask about services that can report them on your behalf — especially if you have a thin credit file. VantageScore emphasizes that on-time rent reporting can help, noting it may boost some scores by as much as 100 points (VantageScore).
Third, keep your utilities current. VantageScore 4.0 weighs utility payment history, so a clean record of paying your electricity and water bills on time counts in your favor. Many buyers don't realize these everyday bills can now help build a mortgage-ready score.
Fourth, don't panic if your number moves. Switching scoring models can raise or lower a given score. A different number from what a credit-card app showed you isn't a sign of a problem — it's a different model looking at more data.
For agents, here's a simple script you can use with a client who rents:
Start by explaining that on-time rent and utility payments can now help a credit score, because the newer scoring model most lenders are adopting counts them. Then check whether the client's landlord reports those on-time payments, and if not, look into reporting services together. Close by telling them a clean payment history can show mortgage lenders they're ready to buy, even if a traditional score looks thin.
This is a genuine shift worth raising early. A buyer who rents and pays bills on time may be more qualified than their Classic FICO suggests — a reason to start pre-approval conversations rather than assuming a client can't buy.
Is FICO 10T part of the current change?
FICO 10T is the other new model approved in 2022, but it's not part of what's happening today. The FHFA validated both FICO 10T and VantageScore 4.0 after extensive testing, and both were found to exceed the required thresholds for accuracy, reliability, and integrity (FHFA). VantageScore 4.0 is the one lenders can use now.
As of today, FICO 10T is not currently eligible for delivery on loans sold to Fannie Mae and Freddie Mac. Lenders can use Classic FICO or VantageScore 4.0 for each loan, and the FHFA says it will provide guidance when FICO 10T becomes available. Classic FICO will eventually be retired, but no retirement date has been announced (FHFA).
For borrowers, that means VantageScore 4.0 is the new model you're most likely to meet at a lender's office today. FICO 10T is one to watch later, not one to prepare for now.
The bottom line for buyers and agents
The shift from a single FICO score to a choice of models is one of the biggest changes in mortgage lending in years. For buyers, it's mostly good news: the new model can see responsible rent and utility payments that older scores ignored, and its 24-month view of your history rewards improvement over time.
For agents, it's a new reason to start the pre-approval conversation early. A client with a thin credit file and a strong rental record may be more ready to buy than a traditional score suggested.
If you're thinking about a home purchase, the single best step is to talk with a mortgage professional who can run your file through the available models and show you your real options. The scoring landscape has changed — but the fundamentals of a strong application haven't. On-time payments, manageable debt, and a steady income still open the door.
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