Major updates to mortgage credit scoring are now live, giving millions of Americans a better chance at home loans.

The Federal Housing Finance Agency (FHFA), Fannie Mae, Freddie Mac, and FHA have approved VantageScore 4.0 for mortgage decisions. FICO Score 10T will follow shortly this summer.

Key Highlights:  

  • New models consider rent, utility, and telecom payments — helping people with thin credit files.

  • They focus on long-term payment trends rather than just old mistakes.

  • Goal: Expand homeownership for young buyers, immigrants, and responsible payers.

Medical debt relief continues, and Buy Now Pay Later (BNPL) behavior is increasingly factored in.

Consumer Tip: Pay all bills on time, keep credit card balances low, and check which score your lender uses. Your score could improve significantly under the new models.

This is the biggest shift in mortgage credit scoring in over 30 years. More updates expected this summer.