The Federal Housing Administration announced on September 10, 2026, that lenders will be able to use VantageScore 4.0 and FICO Score 10T for FHA-insured mortgages beginning with case numbers assigned on or after January 1, 2027. The new models will be accepted alongside Classic FICO for eligible Title II forward mortgages scored through FHA’s TOTAL Mortgage Scorecard.
The announcement gives lenders less than four months to prepare their systems for the biggest change to FHA credit scoring in decades. If successful, the final adoption of alternative credit scoring models for government-backed loans would mark the culmination of a yearslong process to modernize credit scoring in the mortgage industry. For borrowers, the shift could mean that on-time rent payments and positive credit trends finally count toward mortgage qualification.
FHA also released an Alternative Credit Scores Preparedness Guide spelling out how the new scores will interact with its underwriting system. The move follows months of uncertainty after HUD Secretary Scott Turner first announced the policy change in April 2026, and it arrives just days after the Federal Housing Finance Agency opened VantageScore 4.0 to all lenders selling loans to Fannie Mae and Freddie Mac.
The details
What FHA is changing—and what it isn’t
The agency will keep its existing credit score thresholds and tri-merge report requirement.
FHA’s tri-merge credit-report requirement and established minimum decision credit score (MDCS) thresholds of 500, 580 and 620 remain in place. The change is about which credit-score models can be used within the existing FHA framework, not an abandonment of FHA’s current credit standards.
That means borrowers will still need a 580 score for the standard 3.5% down payment FHA loan, or a 500 to 579 score if they can put 10% down. The difference is that lenders will now have three approved ways to calculate that score: the Classic FICO models that have been used for decades, or the newer VantageScore 4.0 or FICO 10T models.
FHA said TOTAL will be updated for case numbers assigned on or after January 1, 2027 so the system can accept the additional scoring models. Until the new guidance is formally published and the implementation takes effect, lenders are supposed to continue following existing credit-report policies in HUD’s Single Family Housing Policy Handbook 4000.1.
The official announcement came via FHA INFO messages on HUD’s website, where the agency confirmed it is enabling the new models as previously announced by Secretary Turner on April 22, 2026. By permitting the use of credit scoring models VantageScore 4.0 and FICO 10T alongside Classic FICO, FHA can catalyze long-delayed competition, reduce systemic dependency on a single legacy model, encourage pricing discipline in the credit reporting market, and better reflect contemporary consumer credit behavior.
Critical implementation rules
All borrowers on a loan must use the same scoring model or models. A lender cannot, for example, submit VantageScore 4.0 for the primary borrower and FICO 10T for a co-borrower. When multiple models are submitted, every model must return an Accept recommendation for the transaction to receive an Accept. If any one of the submitted models returns a Refer recommendation, the final recommendation will be Refer. That means using more than one model doesn’t give borrowers multiple shots at approval—it can actually make qualification harder.
Why this matters
How the new models differ from Classic FICO
VantageScore 4.0 and FICO 10T both use trended data and can score millions more Americans.
Classic FICO models look at your credit at a single point in time: how much you owe right now, whether you’ve paid on time, and how long you’ve had credit. They don’t track direction or improvement. The newer models take a different approach.
VantageScore is the first and only tri-bureau credit-scoring model to incorporate trended credit data, which reflects changes in credit behaviors over time, rather than relying on static, individual credit-history records which reflect only one point-in-time. VantageScore 4.0 incorporates trended credit data and alternative credit information, including rent payments and utility bills, to provide a broader view of consumer creditworthiness.
The practical impact: a borrower who has been steadily paying down credit card balances and making rent on time will look meaningfully different under VantageScore 4.0 than under Classic FICO. VantageScore can generate credit scores for approximately 33 million more U.S. adults than competing models. More than 10 million of these newly scored consumers have scores of 620 and above, making them potentially eligible for mortgages.
FICO 10T also uses trended data, analyzing 24 months of payment behavior rather than just your balances on the day the report is pulled. Both models are designed to reward borrowers who are improving their financial situation, not just those who already have perfect credit.
For FHA borrowers specifically, this could matter. Over 80% of all FHA-insured mortgages went to first-time homebuyers in 2024, many of whom have shorter credit histories or are still building their credit profiles. The ability to count on-time rent payments—something many FHA borrowers have been doing for years—could help some clear the 580 threshold who wouldn’t have qualified under the old snapshot method.
The competition angle
Since 2020, FICO has increased the price per a person’s credit score by 1,800 percent, according to FHFA Director Bill Pulte, who said in September that “FICO has enjoyed a monopoly. No more”. Studies show VantageScore 4.0 adoption could save lenders up to $1 billion, which proponents argue should translate to lower closing costs for consumers. Whether those savings actually reach borrowers will depend on how lenders price their services once competition takes hold.
Context
This is part of a broader government push
Fannie, Freddie, and FHA are all moving to the new models on different timelines.
On April 22, 2026, the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development announced that their respective underwriting software will begin allowing VantageScore 4.0 and FICO 10T credit scoring models. That joint announcement set the process in motion, but implementation has followed separate tracks.
For conventional loans, Fannie Mae and Freddie Mac began accepting VantageScore 4.0 from a limited group of approved lenders in late April. On September 9, 2026, the Enterprises expanded the availability of VantageScore 4.0 to all approved lenders, removing the requirement for prior written approval. As of August 31, 2026, VantageScore 4.0 has been the sole credit score used for over 9% of all mortgages securitized by Fannie Mae and Freddie Mac since May 1, 2026.
FICO Score 10T is not currently eligible for delivery to the Enterprises, and they will provide additional guidance when FICO Score 10T becomes available for loan deliveries. On July 1, 2026, the Enterprises published historical credit score data for the FICO 10T model—covering loans acquired from April 2013 through September 2025—and released additional historical VantageScore 4.0 data covering loans acquired from April 2023 through September 2025. That data allows lenders and investors to analyze how the models perform before fully adopting them.
Unlike the conventional market overseen by the Federal Housing Finance Agency, the FHA rollout is expected to apply to all lenders at launch. There is no limited pilot—on January 1, any FHA-approved lender will be able to choose which model or models to use, as long as they apply the same choice to all borrowers on a given loan.
You can read more about FHA loans and how credit scores affect your eligibility on our bad credit and low score guide, and see the full range of down payment assistance and low-income programs that work with FHA financing. If you’re a first-time buyer, understanding how these scoring changes might help you qualify is worth discussing with your lender during the mortgage application process.
What to do
Steps borrowers should take now
The models reward improvement, so focus on trends, not snapshots.
First, understand that you cannot assume your lender will use the new models just because they’re available. No FHA-approved lender had publicly announced plans to begin using FICO 10T or VantageScore 4.0 specifically for FHA underwriting on January 1 as of mid-September 2026. Many lenders will likely continue using Classic FICO during the transition while they update their systems and train staff. Ask your loan officer directly which scoring model they plan to use for your specific loan type.
Second, if you’re planning to apply for an FHA loan in 2027, start managing your credit as a trend rather than a snapshot. Pay down credit card balances consistently over several months rather than all at once right before you apply. The trended-data models will see that pattern of improvement. Make sure your rent payments are being reported to the credit bureaus if your landlord or property manager offers that option—VantageScore 4.0 can incorporate that data, and it’s highly predictive of mortgage repayment.
Third, if you were denied for an FHA loan in 2026 because your score fell just short of 580, it may be worth reapplying in early 2027 with a lender that has adopted one of the new models. Borrowers with thin credit files, recent immigrants, young buyers with short credit histories, and anyone rebuilding after financial hardship are most likely to see score improvements under the trended-data approach.
Finally, don’t rely on free credit monitoring apps to tell you what your mortgage score will be. Those apps often use a version of VantageScore, but not necessarily VantageScore 4.0 as implemented for mortgage underwriting, and the score you see there is not the same score a lender will pull during a formal application. The only reliable way to know where you stand is to go through pre-approval with a lender who will pull your actual mortgage credit report.
If you need help improving your credit or finding mortgage financing options, start by reviewing your state’s housing programs and resources. Many states offer credit counseling and homebuyer education that can help you understand exactly what lenders will be looking for under the new scoring models.
Quick answers
FHA credit scoring changes: common questions
Will my FHA lender automatically use the new credit scores?
No. Lenders have the option to use VantageScore 4.0, FICO 10T, or Classic FICO starting January 1, 2027, but they are not required to adopt the new models. Many lenders will continue using Classic FICO during the transition. You need to ask your specific lender which scoring model they will use for your loan.
Do the minimum FHA credit score requirements change?
No. FHA’s minimum decision credit score thresholds remain 500, 580, and 620 regardless of which scoring model is used. You still need a 580 for a 3.5% down payment loan, or 500 to 579 if you can put 10% down. The difference is how that score is calculated, not what score you need.
How is VantageScore 4.0 different from Classic FICO?
VantageScore 4.0 uses trended credit data, meaning it looks at 24 months of your credit behavior and payment patterns, not just a snapshot of your balances today. It can also incorporate alternative data like on-time rent, utility, and telecom payments. This means borrowers who are improving their credit or who pay rent on time may score higher under VantageScore 4.0 than under Classic FICO.
Can I choose which credit score model my lender uses?
No. The lender chooses which approved model to use. However, you can shop around and ask different lenders which model they use. If one lender uses Classic FICO and you think you’d score better under VantageScore 4.0, you can apply with a lender that has adopted the newer model.
What happens if my lender submits multiple credit score models to FHA?
All borrowers on the loan must be scored using the same model or models, and if a lender submits multiple models, every single model must return an Accept recommendation for your loan to be approved. If any one model returns a Refer, the entire application gets a Refer. Using multiple models doesn’t give you extra chances—it can actually make approval harder.
Will the new scoring models help me if I have a thin credit file?
Possibly. VantageScore 4.0 can score approximately 33 million more U.S. adults than Classic FICO, including more than 10 million people with scores of 620 or above. If you have limited traditional credit history but pay rent and utilities on time, and those payments are reported to the credit bureaus, VantageScore 4.0 may generate a higher score for you than Classic FICO would.