Up until now, mortgage lenders selling loans to Fannie Mae or Freddie Mac were required to use older FICO score models (FICO 2, 4, and 5). These models were built on outdated data and often excluded borrowers with limited or nontraditional credit histories.
Now, FHFA has approved VantageScore 4.0 for mortgage underwriting, a shift that brings more advanced analytics, broader inclusion, and trended credit data into the process.
If you’re searching for the latest onFannie Mae VantageScore 4.0 approvalor how Freddie Mac credit score changes might affect you—this is what you need to know.
| Feature | VantageScore 4.0 | Classic FICO (Versions 2/4/5) |
|---|---|---|
| Credit History Required | Scores with as little as 1 month of history | Requires 6+ months of history |
| Data Used | Uses trended data from the last 24 months unlike FICO this includes rent payments made | Snapshot of a single point in time |
| Scoring Reach | Scores 37M more consumers, including those with thin files | Excludes many low-history consumers |
| Model Technology | Built with machine learning & modern algorithms | Based on older credit behaviors |
| Alternative Data | Can include rent, utilities, telecom (if reported) | Typically excluded |
Expanded Access: Ideal for first-time homebuyers or those with limited credit history.
More Accurate: Uses trended credit data to evaluate long-term habits, not just current balances.
Scores More People: About 33–37 million more Americans may now qualify for a home loan.
Increased Equity: Helps close gaps for historically underserved communities.
Different Scores: You may notice your VantageScore vs FICO score looks different—which can be confusing on the best score.Â
Slow Rollout: Full implementation will take a few years; many lenders will still rely on FICO in the meantime.
Education Gap: Some consumers (and even lenders) aren’t familiar with the newer model yet. This will require educated experienced loan officers to guide you are the best optionsÂ
If you’ve been held back from buying a home because of a low or “thin” credit file, the 2025 credit score changes for home loans could be the opportunity you’ve been waiting for. You pay your rent on time now this will reflect on your Vantage Score.
The move to VantageScore 4.0 isn’t just about numbers—it’s about fairness, inclusion, and modernizing the path to homeownership. However, FICO remains dominant, and lenders may continue using it due to familiarity, underwriting risk, and repurchase concerns
This update is a major step forward in mortgage accessibility and scoring innovation. With the ability to use VantageScore 4.0, lenders working with Fannie and Freddie have newfound flexibility—and more prospective buyers may now qualify for loans.
But keep in mind:
We’re a licensed mortgage broker keeping a close eye on these changes. Whether it’s FICO or VantageScore, our job is to help you understand where you stand—and how to move forward.
Need help figuring out your credit score options or qualifying for a loan?
📞 Let’s Talk.
Schedule a free consultation and take the first step toward your homeownership goals—no matter your credit history.