The short answer: Since September 9, 2026, every lender selling loans to Fannie Mae or Freddie Mac can score your mortgage with VantageScore 4.0 instead of Classic FICO, and as of September 30 both models share the same fee grid. FHA adds VantageScore 4.0 and FICO 10T for case numbers assigned on or after January 1, 2027. Your scores can differ between models, so if you're buying or refinancing next year, check all three credit reports now, fix errors early, and ask each lender which model it uses.
As of November 10, 2026. Rules are from FHFA, Fannie Mae and HUD; fee figures are Fannie Mae's published loan-level price adjustments, not a quote or an offer of credit.
What actually changed with mortgage credit scores?
For decades, a conventional mortgage meant one scoring model: "Classic FICO." That's no longer the only option. Here's the sequence, from FHFA's own timeline (FHFA, Credit Scores, updated October 2, 2026):
- July 8, 2025: FHFA let lenders use either VantageScore 4.0 or Classic FICO for loans sold to Fannie Mae and Freddie Mac.
- April 22, 2026: A limited rollout of VantageScore 4.0 began. HUD and FHFA announced the same day that FHA would also allow VantageScore 4.0 and FICO 10T (FHFA, April 22, 2026).
- September 9, 2026: Fannie Mae and Freddie Mac opened VantageScore 4.0 to all approved lenders, "removing the requirement for prior written approval." Fannie Mae said the change was "effective immediately" (Fannie Mae Lender Letter LL-2026-06).
- September 30, 2026: The two companies aligned their upfront fees across Classic FICO and VantageScore 4.0, so a given score gets the same pricing adjustment under either model.
What hasn't changed yet: Classic FICO is still allowed, and FHFA says it "is expected to be retired at a future date, but no retirement date has been announced." FICO 10T "is not currently eligible for delivery" on Fannie and Freddie loans. And lenders still pull reports from all three bureaus.
Which loans use which score?
Which credit score models each loan type accepts
| Classic FICO | VantageScore 4.0 | FICO 10T | |
|---|---|---|---|
| Conventional (Fannie Mae / Freddie Mac) | Yes | Yes All approved lenders since Sept. 9, 2026 | No Approved, not yet deliverable |
| FHA, case numbers through Dec. 31, 2026 | Yes | No | No |
| FHA, case numbers from Jan. 1, 2027 | Yes | Yes | Yes |
For FHA loans, HUD's Mortgagee Letter 2026-11 adds the two newer models alongside Classic FICO for case numbers assigned on or after January 1, 2027. HUD says the "existing minimum credit score thresholds remain unchanged regardless of Credit Score Model Type": 580 or higher for maximum financing, 500 to 579 limited to 90% loan-to-value, and below 500 not eligible. FHA "will continue to require a tri-merge credit report" (HUD Mortgagee Letter 2026-11, October 8, 2026).
Which of my scores does the lender actually use?
Not your highest, and not the one on your banking app. On a conventional loan, the lender pulls a score from each bureau and uses the middle of three (or the lower of two). If there's more than one borrower, the loan is priced on the lowest of those borrowers' scores (Fannie Mae Selling Guide B3-5.1-02). FHA uses a similar middle-score method, then the lowest borrower (HUD ML 2026-11).
Two practical points follow. First, if you're buying with a spouse or partner, the lower-scoring borrower's middle score is the one that counts. Second, because lenders must use the same model for everyone on the loan, a lender can't mix your VantageScore with your co-borrower's FICO to get the better of each (Fannie Mae LL-2026-06).
How much does my score affect the cost of a loan?
A lot, through what Fannie Mae calls loan-level price adjustments (LLPAs): one-time fees based on your score, down payment and loan type that lenders typically build into your rate or points. Here's Fannie Mae's published grid for one common case, a purchase loan with 20% to 25% down:
Fannie Mae upfront fee by credit score, purchase loan with 20% to 25% down
The gap between the top and bottom bands is 2.375% of the loan amount on the same house with the same down payment. That's why a 20-point score difference between two models, or a single error on one bureau's report, can matter.
Will VantageScore help or hurt me?
It depends on your file, and you won't know until a lender pulls both. VantageScore says its model scores about 33 million more U.S. adults than Classic FICO, many of them people with thin or dormant credit files (VantageScore, September 4, 2026). That's the company's own figure. For borrowers with long, clean histories, the two models often land close together. For someone with limited credit history, a recent late payment or high card balances, they can differ more.
Since the choice belongs to the lender, not you, this is one more reason to compare lenders: two lenders using different models can see different scores for the same person.
What could change next?
Three things to watch. FHFA Director Bill Pulte said in October he is reviewing LLPAs and expects to decide "whether there will be any changes to LLPAs before year end," and that FHFA is studying "the usage of just one or two credit reports" instead of three (HousingWire, October 19, 2026). Neither has been announced. And FHFA has not set a date to retire Classic FICO or to start FICO 10T on conventional loans.
How should I get my credit ready for a 2027 purchase?
Getting your credit mortgage-ready
- 1
Now
Pull all three reports
- Free weekly at AnnualCreditReport.com
- Checking your own report doesn't hurt your score
- 2
Now
Dispute errors early
- Late payments that weren't late, accounts that aren't yours
- Corrections can take weeks to show up
- 3
60-90 days before applying
Lower card balances
- Pay down before the statement closes
- Don't close old accounts
- 4
While shopping
Compare lenders within 45 days
- Mortgage checks in that window count as one inquiry
- Ask each lender which score model it uses
- 5
Until closing
Keep your credit quiet
- No new cards or car loans
- Keep paying everything on time
The free weekly reports from all three bureaus are permanent, and AnnualCreditReport.com is the official site (FTC, Free Credit Reports). The CFPB says checking your own report "has no effect on your score" (CFPB), and that "within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry" (CFPB). If your job situation is also changing, read my piece on changing jobs before you buy; and for where rates stand, see last week's rate update.
Reading from outside California? Everything here is national: these are Fannie Mae, Freddie Mac and FHA rules.
Derek\'s take
The headline here isn't "VantageScore good, FICO bad." It's that the score a lender sees now depends partly on which lender you go to, and on which bureau has a mistake on it. As a broker, I can see how different lenders treat the same file, which is useful when you're sitting on a pricing line like 739 versus 740. If you're thinking about buying or refinancing in 2027, the best time to look at your credit is two or three months before you apply, not the week you write an offer. If you'd like to go through it together, book a call with me. Thirty minutes, no credit pull, no obligation.
Frequently asked questions
Can I choose whether my lender uses FICO or VantageScore?
No. The lender picks which allowed model it uses, and it must use the same model for every borrower on the loan. You can ask which one a lender uses, and comparing lenders is how you get a say.
Is VantageScore 4.0 accepted for FHA loans?
Starting with FHA case numbers assigned on or after January 1, 2027, under HUD Mortgagee Letter 2026-11. Until then, FHA uses Classic FICO. FHA's minimum score thresholds (580 for maximum financing, 500 to 579 at up to 90% loan-to-value) stay the same under every model.
Is Classic FICO going away?
Not yet. FHFA says it is expected to be retired at a future date, but no date has been announced, and it remains eligible for Fannie Mae and Freddie Mac loans.
Which credit score do mortgage lenders use if I have three?
For each borrower, the middle score of the three bureaus (or the lower of two). With more than one borrower, the loan is generally priced on the lowest of those scores.
Will shopping several lenders hurt my credit?
The CFPB says mortgage credit checks within a 45-day window are recorded as a single inquiry. Checking your own credit report doesn't affect your score at all.
This article is general education, not credit, legal or financial advice, and not an offer of credit or a commitment to lend. Fee figures are Fannie Mae's published adjustments for one scenario; your pricing depends on your full loan file and lender.
Sources
- FHFA, Credit Scores (last updated October 2, 2026)
- FHFA and HUD, Homebuying Advances into New Era of Credit Score Competition (April 22, 2026)
- Fannie Mae, Lender Letter LL-2026-06, VantageScore 4.0 Broad Lender Availability (September 9, 2026)
- Fannie Mae, Loan-Level Price Adjustment Matrix (September 9, 2026)
- Fannie Mae Selling Guide, B3-5.1-02, Determining the Credit Score for a Mortgage Loan
- HUD, Mortgagee Letter 2026-11, Updated Minimum Decision Credit Score Methodology (October 8, 2026)
- HousingWire, Pulte floats LLPA and credit report changes (October 19, 2026)
- VantageScore via Business Wire, VantageScore 4.0 now FHFA approved for all lenders (September 4, 2026)
- FTC, Free Credit Reports
- CFPB, Does requesting my credit report hurt my credit score?
- CFPB, What happens when a mortgage lender checks my credit?
This article is general education, not a commitment to lend, an offer of credit, or tax, legal or investment advice. All loans are subject to credit approval, income and asset verification, and property appraisal. Programs, rates, terms and limits change without notice; figures are current as of the publish date. Derek Shao, NMLS #242117, CA DRE #01358261. Financial Dynamics, Inc. DBA Emory Financial, Company NMLS #393986. Equal Housing Opportunity.
