FHFA Implements Long-Awaited Credit Score Modernization
It’s been years in the making – but finally – as of April 22, 2026, Fannie Mae, Freddie Mac, and FHA will allow lenders to use VantageScore® 4.0 to determine credit worthiness in mortgage applications. According to the Federal Housing Finance Agency (FHFA), they will continue to accept the Classic FICO® scoring model, as they work toward full implementation of FICO 10T.
Both FICO 10T and VantageScore 4.0 incorporate rental payments, utilities, and telecommunication payment history to provide a more accurate assessment of credit risk. This is particularly beneficial to millions of consumers that have little to no credit history, or who are working on improving their credit scores.
What Took So Long?
Credit score modernization has been in the works for many years. Initially, FHFA announced the validation and approval of modernized credit score models from FICO and VantageScore in October 2022, to be fully implemented by Q4 2025. This would have given Fannie Mae, Freddie Mac, and lenders a three-year time span to implement the transition.
The project was put on hold in mid-January 2025, anticipating administration changes in FHFA leadership. Since then, rigorous testing and review continued, to ensure accuracy, reliability, and the ability to incorporate additional data such as rent payments.
There are many ways to get rental payments, cell phone bills, and other recurring payment histories added to your credit reports to boost your credit score. Give me a call if you would like more information about improving your credit score, as it relates to securing financing for your dream home! Together, we can create your action plan for success.