Fannie Mae announced major steps in credit score modernization this week, opening the door for VantageScore 4.0 and eventually FICO Score 10T in mortgage decisions.

Key Changes  

  • VantageScore 4.0 is now available immediately through a limited rollout for approved lenders using tri-merge reports.

  • FICO Score 10T will follow soon, with historical data for both models releasing this summer.

  • The Federal Housing Administration (FHA) is aligning with similar updates, marking the biggest shift in mortgage credit scoring in decades.

Why It Matters  

The new models consider alternative data like rent, utility, and telecom payments, plus trended credit behavior over time. This could help millions with thinner credit files or strong non-traditional payment histories qualify for home loans more easily.

Fannie Mae is also moving away from rigid minimum score cutoffs toward a broader risk assessment.

Quick Tips for Borrowers  

  • Pay all bills on time.

  • Keep credit card balances low.

  • Monitor your reports at AnnualCreditReport.com.

These updates promote more competition and fairness in lending. Full rollout will continue through 2026—check with lenders about which scores they use. Stay tuned for more developments!