The Federal Housing Administration announced last week that it will begin accepting mortgages underwritten with VantageScore 4.0 and FICO Score 10T starting January 1, 2027. The change affects FHA-insured loans—which account for nearly 20% of all U.S. mortgages—and marks one of the biggest shifts in government mortgage credit scoring in decades.
Lenders will be able to choose among Classic FICO, VantageScore 4.0, or FICO 10T when submitting loans through FHA’s TOTAL Mortgage Scorecard for case numbers assigned on or after the new year. The move introduces direct competition between scoring models for the first time in FHA history and follows similar changes at Fannie Mae and Freddie Mac, which expanded VantageScore 4.0 access to all approved lenders on September 9, 2026.
For borrowers, the practical impact will depend on which model their lender adopts. VantageScore 4.0 can score approximately 33 million more Americans than Classic FICO by incorporating trended credit data and alternative payment histories like rent and utilities, potentially opening the door for buyers who’ve been locked out under the old system.
The details
What’s changing—and what isn’t
FHA is adding options, not replacing Classic FICO
The January 1 implementation date applies to FHA Title II forward mortgages scored through the TOTAL Mortgage Scorecard. Lenders will not be required to adopt the new models—Classic FICO remains fully approved with no announced retirement date—but they will have the option to use VantageScore 4.0 or FICO 10T on a loan-by-loan basis.
FHA released an Alternative Credit Scores Preparedness Guide on September 10 spelling out how the new scores will work within its existing underwriting framework. The agency is keeping its tri-merge credit report requirement, meaning lenders must still pull reports from all three national credit bureaus (Equifax, Experian, and TransUnion). FHA’s established minimum decision credit score thresholds of 500, 580, and 620 also remain in place and will apply equally to all three scoring models.
There are important operational rules. All borrowers on a single loan must be scored using the same credit model or models—a lender cannot, for example, submit VantageScore 4.0 for the primary borrower and FICO 10T for a co-borrower. And if a lender chooses to submit multiple scoring models for the same loan, every model must return an Accept recommendation from TOTAL Scorecard for the transaction to receive an Accept. That means using multiple models doesn’t give lenders multiple chances at approval; it can actually make approval harder.
Key requirements
January 1, 2027: Implementation date for case numbers assigned on or after this date
Three models allowed: Classic FICO, VantageScore 4.0, FICO Score 10T
Tri-merge still required: Lenders must pull credit from all three bureaus
Same thresholds apply: Minimum decision credit scores of 500, 580, and 620 remain unchanged
Model consistency required: All borrowers on a loan must use the same scoring model
The models
How VantageScore 4.0 and FICO 10T differ from Classic FICO
Both newer models use trended data and alternative tradelines
Classic FICO—the scoring model that has dominated mortgage lending for more than three decades—provides a snapshot of a borrower’s credit at a single point in time. It typically requires at least six months of credit history with an active account to generate a score, and it doesn’t consider payment histories for rent, utilities, or telecom bills.
VantageScore 4.0 and FICO 10T both incorporate trended credit data, which tracks how borrowers manage their credit over time—whether balances are rising or falling, whether accounts are paid in full or carried month to month. VantageScore 4.0 goes further by including alternative data such as rent, utility, and telecommunications payment histories. It can generate a score with as little as one month of credit history, and VantageScore claims it scores roughly 33 million more U.S. adults than Classic FICO or FICO 10T.
Both scoring models use the same 300-to-850 range as Classic FICO, but they weigh factors differently. Research from the Urban Institute found that VantageScore 4.0 scores tend to run higher on average than Classic FICO scores, especially for refinance loans and investment properties, though the models are roughly comparable at identifying high-risk borrowers. Independent studies have produced conflicting conclusions about which model is more predictive, with VantageScore claiming superior performance and outside analysts finding the differences to be marginal once methodological adjustments are made.
The change is part of a broader federal push to introduce competition into mortgage credit scoring. HUD Secretary Scott Turner and Federal Housing Finance Agency Director Bill Pulte announced the policy shift jointly at an April 22, 2026 press conference, framing it as an effort to expand access to homeownership for creditworthy borrowers overlooked by older systems. FHFA had validated both VantageScore 4.0 and FICO 10T back in October 2022 following a process mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.
You can read more about buying a house with bad credit and explore down payment assistance programs that work with FHA loans.
For borrowers
Who benefits from the new scoring models
Thin-file borrowers and renters with strong payment histories stand to gain the most
The borrowers most likely to see higher scores under VantageScore 4.0 are those with limited traditional credit histories—often called “thin-file” or “credit invisible” consumers—and those with strong records of on-time rent and utility payments that Classic FICO ignores. First-time buyers, younger borrowers, immigrants, and people rebuilding credit after financial setbacks may find it easier to qualify or receive better terms if their lender adopts the newer model.
But there’s a critical catch: you don’t get to choose which scoring model your lender uses. Lenders will decide on a loan-by-loan basis which model to pull, and as of September 12, 2026, no FHA-approved lender had publicly announced plans to begin using FICO 10T or VantageScore 4.0 specifically for FHA underwriting on January 1. Industry adoption will be gradual, and many lenders are expected to stick with Classic FICO in the early months while they update systems and train staff.
Over 80% of FHA-insured mortgages went to first-time homebuyers in 2024, and the agency has long served borrowers with lower credit scores and smaller down payments than conventional loans require. FHA’s minimum score of 580 for a 3.5% down payment (or 500 for a 10% down payment) remains unchanged under the new policy, but individual lenders often impose their own higher minimums—called overlays—typically in the 620 to 640 range.
The best strategy for borrowers is to ask lenders directly which scoring model they plan to use for FHA loans and to compare offers from multiple lenders. If you have a thin credit file or a strong rent-payment history that isn’t reflected in your Classic FICO score, seek out lenders that have committed to adopting VantageScore 4.0. The official list of approved models and lender adoption is tracked on FHFA’s credit scores policy page.
Who may see higher scores
Borrowers with less than six months of traditional credit history
Renters with on-time rent payments reported to credit bureaus
Consumers with strong utility and telecom payment histories
People with rising account balances but consistent payments (trended data rewards paydown behavior)
Borrowers rebuilding credit after bankruptcy or foreclosure who have recent positive payment patterns
Learn more about first-time homebuyer programs and mortgage financing options that pair with FHA loans.
Context
A broader shift across the mortgage industry
Fannie Mae, Freddie Mac, and the VA are moving in parallel
FHA’s January 1 implementation date arrives in the middle of a rapid overhaul of mortgage credit scoring across the government-sponsored housing sector. Fannie Mae and Freddie Mac began accepting VantageScore 4.0 from a limited group of approved lenders in late April 2026, then expanded availability to all approved lenders on September 9, 2026. Major originators including Rocket Mortgage, United Wholesale Mortgage, and the Federal Home Loan Banks have already begun using VantageScore 4.0 for conventional loans, and the U.S. Department of Veterans Affairs has also adopted the model.
FICO 10T has moved more slowly. FHFA published historical FICO 10T credit score data on July 1, 2026, covering loans acquired from April 2013 through September 2025, but the model is not yet eligible for delivery to Fannie Mae or Freddie Mac. The GSEs have said they will provide additional guidance before FICO 10T becomes available for loan deliveries. FHA’s January 1 date will make it the first government mortgage program to accept live FICO 10T scores.
The shift has sparked intense debate in the industry. VantageScore, which is jointly owned by Equifax, Experian, and TransUnion, has promoted potential savings approaching $1 billion per year for lenders and is offering its score to mortgage lenders at $1 per pull through the end of 2027. FHFA Director Bill Pulte has been outspoken about breaking what he calls FICO’s monopoly, noting in social media posts that FICO increased the price per credit score by 1,800% since 2020. FICO, in turn, has argued that its models remain the industry standard and that FICO 10T offers comparable predictive power to VantageScore 4.0 while maintaining continuity with decades of underwriting experience.
For borrowers, the bottom line is that more options are coming, but the transition will take months or years to play out. Lenders will need time to integrate new systems, train underwriters, and decide which models to adopt. In the near term, Classic FICO will remain the dominant standard, and borrowers should not assume that a new scoring model will automatically improve their chances of approval.
Quick answers
FHA credit score changes: common questions
Will my FHA lender automatically use VantageScore 4.0 or FICO 10T after January 1?
No. Lenders choose which scoring model to use on a loan-by-loan basis. Classic FICO remains fully approved, and many lenders are expected to continue using it in the early months of 2027 while they update their systems. You’ll need to ask your lender directly which model they plan to use for your loan.
Can I request that my lender use VantageScore 4.0 instead of Classic FICO?
You can ask, but the lender makes the final decision. If you believe VantageScore 4.0 will give you a higher score—for example, because you have a strong rent-payment history—your best strategy is to shop among multiple lenders and find one that has committed to using the newer model for FHA loans.
Do the FHA minimum credit score requirements change under the new models?
No. FHA’s minimum decision credit score thresholds of 500, 580, and 620 remain in place and apply equally to Classic FICO, VantageScore 4.0, and FICO 10T. A 580 score still qualifies you for a 3.5% down payment, and a score between 500 and 579 requires 10% down, regardless of which model is used.
What if my VantageScore 4.0 is higher than my Classic FICO score?
If your lender uses VantageScore 4.0 and your score is higher under that model, you may qualify for better loan terms or approval when you wouldn’t have qualified under Classic FICO. But remember that individual lenders often impose their own minimum score requirements (overlays) above FHA’s official floor, so a higher score doesn’t guarantee approval.
Will using multiple scoring models improve my chances of getting approved?
No—it can actually make approval harder. If a lender submits multiple scoring models to FHA’s TOTAL Scorecard, every model must return an Accept recommendation for the loan to be approved. Using multiple models gives you multiple hurdles, not multiple chances.
When will FICO 10T be available for Fannie Mae and Freddie Mac loans?
FICO 10T is approved by FHFA but not yet eligible for delivery to Fannie Mae or Freddie Mac. The GSEs published historical FICO 10T data in July 2026 and have said they will provide additional guidance before the model becomes available for loan deliveries. No specific date has been announced.