Credit scores are undergoing their most significant overhaul in years, with mortgage lenders now able to use new models that consider a wider range of financial behaviors, including rent and utility payments. On April 22, 2026, Fannie Mae announced that approved lenders can immediately begin using VantageScore 4.0 for mortgage loans, while FICO Score 10T will follow later as historical data becomes available.
The shift represents a major modernization effort led by the Federal Housing Finance Agency (FHFA) and endorsed by the 2018 Economic Growth, Regulatory Relief and Consumer Protection Act. VantageScore 4.0 incorporates trended credit data—a 24-month view of payment history—and factors in alternative data sources that traditional FICO models ignore, such as on-time rent and utility payments.
One of the most significant impacts is the expansion of credit access. VantageScore 4.0 can score approximately 33 million more consumers than traditional FICO models, according to VantageScore and the Federal Reserve Bank of New York. Many of these previously unscored individuals have limited credit histories but demonstrate creditworthiness through consistent rent and utility payments. Nearly 10 million of this population achieve a VantageScore of 620 or higher, a level generally considered creditworthy in mortgage underwriting.
The new models differ in scope and implementation. VantageScore 4.0 is now available to approved lenders for immediate use through a limited rollout, while FICO 10T—also validated in 2022—remains in preparation. The FHFA expects to publish historical FICO 10T scores in summer 2026, with broader adoption to follow. Classic FICO remains approved and will continue as an option for lenders not yet participating in the transition.
This interim approach allows lenders to choose between Classic FICO or VantageScore 4.0 on a loan-by-loan basis, promoting competition without disrupting the mortgage market. Lenders participating in the rollout deliver VantageScore 4.0 scores through tri-merge credit reports (reports from all three credit bureaus), while others continue using Classic FICO until VantageScore 4.0 becomes broadly available.
The modernization addresses longstanding critiques that traditional credit scores overlook evidence of financial responsibility. Renters, immigrants, young adults, and others with thin credit files have historically struggled to qualify for mortgages despite consistent payment patterns. The new models help lenders assess whether a borrower’s financial situation is improving or worsening by examining trends over time, rather than relying on a single snapshot.
When FICO announced the validation of these new models in October 2022, it noted that both VantageScore 4.0 and FICO 10T exceeded required thresholds for accuracy, reliability, and integrity. The FHFA stated that newer credit score models are more predictive of default risk, potentially improving risk management throughout the housing finance system while expanding access to homeownership for millions of previously unscored Americans.
Sources
- FHFA (Federal Housing Finance Agency) — Credit score policy updates, validation of new models, and implementation timeline; April 22, 2026
- Fannie Mae — Announcement of credit score model updates and immediate availability of VantageScore 4.0 for approved lenders; April 22, 2026
- VantageScore — Information on VantageScore 4.0 capabilities, scoring of 33 million additional consumers, and mortgage market entry
- Federal Reserve Bank of New York — Research on credit score changes and inclusion of 33 million individuals with limited credit histories
- Create Credit Union — Details on trended data and how new models evaluate borrower behavior over 24-month periods
- Milliman — Analysis of FICO 10T and VantageScore 4.0 use of trended credit data and mortgage performance
