Fannie Mae Just Changed the Credit Scores Used for Mortgages
Lenders can now use VantageScore 4.0 on conventional loans — and FICO Score 10T is coming next. The first major credit score model update in decades. Here’s what changed and how it affects your next mortgage.
Rollout is phased. Not every lender has access to VantageScore 4.0 yet — confirm with your loan officer which score model applies to your file.
What Fannie Mae Actually Announced
Fannie Mae is updating its Selling Guide — the rulebook lenders follow to sell loans to Fannie Mae — to allow two newer credit score models alongside Classic FICO.
VantageScore 4.0
Available now, but only through a limited rollout to approved lenders. Pulled from all three credit bureaus through a tri-merge credit report.
FICO Score 10T
Approved for future use. No live date yet. Fannie Mae will give advance notice before it goes live.
Classic FICO
Still required for every lender not in the limited rollout, until VantageScore 4.0 is broadly available.
Fannie Mae is also releasing historical credit score data this summer — FICO Score 10T data from April 2013 through September 2025, and additional VantageScore 4.0 data from April 2023 through September 2025. That data lets lenders and investors see how the new models would have performed on past loans.
Why the Change Matters
The credit score models used for mortgages have not changed in decades. Classic FICO only looks at a snapshot of your credit at one point in time. The newer models look at more data — and a longer pattern of behavior.
What the Newer Models Look At
- Trended credit data: How you have used credit over the past 24+ months — not just your balance today. Someone who pays down debt consistently looks different from someone who carries maxed-out balances, even if the current score is the same.
- On-time rent payments: The newer models can factor in rent payment history when it is reported. Big deal for renters who have paid on time for years but have thin credit files.
- Broader data coverage: More consumers may now get a usable score — people who were “credit invisible” under Classic FICO because they did not have enough traditional credit history.
Fannie Mae says the goal is more competition between scoring models, better risk prediction, and potentially lower costs for borrowers.
Classic FICO vs. VantageScore 4.0 vs. FICO 10T
| Feature | Classic FICO | VantageScore 4.0 | FICO Score 10T |
|---|---|---|---|
| Status at Fannie Mae | Required for all non-pilot lenders | Live for approved lenders only | Approved, not yet live |
| Uses trended data | No | Yes | Yes |
| Rent payment history | Rarely | Yes, where reported | Yes, where reported |
| Designed for | Legacy baseline | More scorable consumers | Stronger risk prediction |
Wondering how your file scores under each model? That answer changes how you should structure your loan.
What This Means for Homebuyers
Nothing changes overnight for most borrowers. If your lender is not in the limited rollout, your file still uses Classic FICO. But the direction of travel is clear. Over the next 12–24 months, more lenders will move to the newer models. Here is what to watch for:
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1More people may qualify. If you have been told you are “unscorable” under Classic FICO, the newer models may generate a score for you.
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2Rent payments start to count. Years of on-time rent can finally help — if your landlord or property manager reports it. Services like Fannie Mae’s Positive Rent Payment Reporting are worth knowing about.
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3Paying down balances matters more. Trended data rewards consistent paydown. Carrying a maxed-out card while making minimum payments will look worse than it does under Classic FICO.
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4Pricing may shift. Fannie Mae says the newer models could potentially lower lending costs over time. That could mean better pricing for some borrowers — and adjusted pricing for others.
What This Means for the Industry
The Selling Guide change affects how lenders run credit, price loans, and feed data into their underwriting engines. The limited rollout is Fannie Mae’s way of pressure-testing the switch before every lender goes live.
Three Things Lenders Need to Prep For
System Updates
LOS, pricing engines, and AUS integrations need to accept VantageScore 4.0 and eventually FICO 10T.
Credit Policy Review
Overlays written against Classic FICO need to be re-evaluated against the new models.
Loan Officer Training
Same borrower can score differently under different models. Knowing how to read both — and explain the gap — is now part of the job.
The Bottom Line
Fannie Mae’s credit score modernization is the biggest shift in mortgage credit evaluation in a generation. It does not rewrite your credit report. It changes how that report gets scored.
For borrowers with thin files, strong rent history, or steady paydown habits, the newer models could open doors that Classic FICO kept closed. For everyone else, it is a sign that the system is finally starting to look at real-world credit behavior instead of a single snapshot.
If you are planning to buy in the next 6–12 months, the smartest move is a credit strategy conversation before you apply. Knowing which score model your lender uses — and how your file will read under each — is now part of getting pre-approved the right way.
Sources
Want to Know How Your File Reads?
Different score models can produce different numbers on the same borrower. If you’re planning to buy in the next 6–12 months, get the credit strategy conversation done before you apply.