The Credit-Score Change That Could Help More Buyers Qualify for a Mortgage

For years, a buyer’s credit score has played a major role in determining whether they qualify for a mortgage and how much they pay to borrow. Now, a major change involving Fannie Mae and Freddie Mac is giving mortgage lenders another way to evaluate borrowers, potentially opening the door to homeownership for some buyers who have struggled under the traditional system.

The change allows approved lenders to use VantageScore 4.0 alongside traditional FICO scores when evaluating eligible mortgages backed by Fannie Mae and Freddie Mac. The goal is to modernize mortgage lending, encourage competition among credit-scoring providers, and potentially make home financing more accessible.

How the New Credit-Scoring System Works

Traditionally, mortgages sold to Fannie Mae and Freddie Mac have relied on established FICO scoring models. VantageScore 4.0 introduces an alternative that evaluates creditworthiness using a different scoring methodology.

The newer model can consider factors such as rental payment history when that information is reported to credit bureaus. This could benefit some borrowers who have consistently paid rent but have limited traditional credit histories. However, a higher score under one model does not guarantee mortgage approval, and lenders must still evaluate income, debt, assets, and other underwriting requirements.

The transition is already underway. In September 2026, the mortgage industry expanded access to the new scoring model, and major lenders began incorporating it into their operations. The change is also part of a broader modernization effort that includes plans for FICO Score 10T.

What This Means for Realtors

For real estate agents, this development creates an important reason to revisit conversations with prospective buyers who believe their credit scores automatically disqualify them from purchasing a home.

Some buyers may benefit from having their credit evaluated using an alternative scoring model, potentially improving their mortgage options. Agents can encourage these clients to speak with a mortgage professional about whether VantageScore 4.0 is available through their lender and appropriate for their situation.

The key takeaway for Realtors is simple: don't assume a buyer has exhausted every mortgage option based on one credit score alone. Understanding the available lending programs can help agents connect buyers with the right professionals and identify opportunities that might otherwise be overlooked.

Will This Make Homeownership More Affordable?

The change could expand access to mortgage financing for some borrowers, but it will not solve the broader affordability challenges facing the housing market.

Home prices, mortgage rates, down payment requirements, and household income remain major obstacles for many prospective buyers. Furthermore, lenders are still responsible for assessing repayment risk, and the availability of alternative scoring models varies by lender and program.

The long-term impact will depend on how widely lenders adopt the new models and whether they help more qualified borrowers secure financing without introducing additional lending risks.