Mortgage lenders can now use VantageScore 4.0 for Fannie and Freddie loans
Mortgage lenders approved by Fannie Mae and Freddie Mac may now use VantageScore 4.0 for eligible mortgages sold to the two government-sponsored enterprises, after federal housing officials removed a prior written-approval requirement.
The change took effect September 9, 2026, according to the Federal Housing Finance Agency. It gives lenders another approved credit-score option alongside Classic FICO, but it does not guarantee mortgage approval, a lower interest rate or an immediate improvement in housing affordability.
What changed
VantageScore 4.0 had previously been available through a limited lender rollout. FHFA said all approved Fannie Mae and Freddie Mac lenders may now use the model when originating and selling eligible mortgages to the enterprises without first obtaining written approval.
Fannie Mae and Freddie Mac confirmed the broader availability in separate lender materials. The change is an option for approved lenders, not a requirement that every lender adopt VantageScore 4.0.
The policy applies to eligible conventional loans that are originated and then sold to Fannie Mae or Freddie Mac. It does not automatically apply to every mortgage product or to loans that remain outside the enterprises’ underwriting and delivery systems.
Classic FICO remains available
Classic FICO has not been retired. FHFA said lenders may continue using Classic FICO or choose VantageScore 4.0 under the enterprises’ selling-guide requirements. FHFA says Classic FICO is expected to be retired at a future date, but no retirement date has been announced.
FICO Score 10T is not currently eligible for loan deliveries to Fannie Mae or Freddie Mac. FHFA said the enterprises will provide additional guidance when that model becomes available for deliveries.
A lender may use different approved models for different loans, but it must use the same model for all borrowers on a particular loan. Co-borrowers therefore cannot be evaluated under different approved models for the same mortgage.
Why borrowers may notice a difference
VantageScore 4.0 can use additional information, including rent-payment history when that data is available. That could produce a different score for some borrowers whose credit profiles are reflected differently by the newer model.
Rent payments will not automatically be counted for every applicant, and a different score will not necessarily be higher. The lender still decides whether to use VantageScore 4.0 for a particular loan and how the result fits into its underwriting process.
FHFA also said the initial change does not alter existing credit-reporting requirements, including applicable tri-merge or bi-merge rules. The new model is being added within the existing mortgage-credit system rather than immediately replacing those reporting requirements.
Pricing will depend on lender adoption
Fannie Mae directed lenders to updated guidance on loan-level price adjustments, which can affect mortgage pricing. As a result, the practical effect may differ from one lender to another even when lenders are considering similar borrowers.
Home shoppers should ask whether a lender currently uses VantageScore 4.0 for eligible conventional loans, which credit-reporting process it uses and how the selected model affects pricing. Comparing loan estimates from multiple lenders remains important because model availability, underwriting practices and pricing may vary.
FHA loans follow a separate timeline
The September 9 change should not be confused with the Federal Housing Administration’s separate policy. HUD said September 10 that FHA plans to allow VantageScore 4.0 and FICO Score 10T, in addition to Classic FICO, for eligible FHA underwriting beginning January 1, 2027.
FHA said its TOTAL Scorecard will be updated for Title II forward mortgages with case numbers assigned on or after January 1, 2027. Until that implementation date, FHA borrowers and lenders should continue following the agency’s existing requirements.
That separate timeline means a borrower using an FHA-insured mortgage may face different credit-score rules from someone applying for a conventional loan sold to Fannie Mae or Freddie Mac.
What to watch next
The next questions are how quickly lenders adopt VantageScore 4.0, how the model affects loan-level pricing and when FICO Score 10T becomes eligible for Enterprise loan deliveries. FHFA and the enterprises also have not announced when Classic FICO might eventually be retired.
Sources
- Federal Housing Finance Agency: Credit Scores
- Freddie Mac: Credit Score Models and Reports Initiative
- Fannie Mae Lender Letter LL-2026-06
- HUD FHA INFO 2026-21
Look for updates to this story
Discover more from Interactive News
Subscribe to get the latest posts sent to your email.