VantageScore 4.0 Is Now Approved for Mortgages — And We Have Access
The Biggest Change in Mortgage Credit Scoring in 30 Years
On April 22, 2026, the Federal Housing Finance Agency (FHFA) and HUD jointly announced that Fannie Mae, Freddie Mac, and the FHA will accept VantageScore 4.0 for mortgage underwriting — alongside or in place of the traditional FICO model that has been the only option for decades. This is the most significant change to how lenders evaluate borrowers since credit scoring was introduced to the mortgage industry.
For millions of Americans — including Veterans, first-time buyers, renters, and anyone who’s been told their credit isn’t good enough — this changes everything. VantageScore 4.0 looks at credit differently than the old FICO model, and for many borrowers, it produces a higher score. That means better rates, easier qualification, and access to homeownership for people who were previously locked out.
What Is VantageScore 4.0?
VantageScore 4.0 is a credit scoring model developed by the three major credit bureaus (Equifax, Experian, and TransUnion). It was designed to modernize how creditworthiness is measured by incorporating data and behaviors that the traditional FICO model ignores.
The two biggest differences:
1. It Uses Trended Data (Not Just a Snapshot)
Traditional FICO looks at your credit at a single point in time — a snapshot. VantageScore 4.0 analyzes your credit behavior over the past 24 months. It sees whether your balances are trending down, whether your payment consistency is improving, and whether your overall financial trajectory is positive. A borrower who has been steadily paying down debt over two years gets rewarded for that trend — even if their current score under FICO doesn’t fully reflect the improvement yet.
2. It Counts Rent, Utility, and Phone Payments
This is the game-changer. FICO has never counted rent payments, utility bills, or phone payments toward your credit score. For millions of Americans who pay rent on time every month but don’t have extensive credit card or loan histories, that responsible behavior was invisible.
VantageScore 4.0 can include rent payments, utility bills, and telecom payments in your credit profile. If you’ve been paying $1,500/month in rent on time for three years, that now counts toward your creditworthiness — instead of being ignored while a missed $30 credit card payment tanks your score.
Who Benefits Most from VantageScore 4.0?
- First-time homebuyers with limited credit history: If you’ve been renting and paying bills but don’t have many traditional credit accounts, VantageScore often produces a higher score than FICO
- Young borrowers (“thin file”): 21% of millennials have thin credit files. VantageScore can score 33 million more people than traditional FICO models
- Veterans and active-duty military: Service members who’ve been deployed, relocated frequently, or primarily used cash and debit may have limited traditional credit history. VantageScore’s inclusion of rent and utility payments fills that gap
- Borrowers recovering from past credit issues: If you had a rough patch 2–3 years ago but have been rebuilding with consistent on-time payments, VantageScore’s trended data shows that recovery trajectory — FICO may still be penalizing you for the old event
- Borrowers who already qualify under FICO but could get a better rate: If your VantageScore is higher than your FICO, you may qualify for more favorable pricing through lower loan-level price adjustments (LLPAs). Even a 20-point improvement can move you into a better rate tier
Real-World Example: How VantageScore Can Change Your Outcome
Borrower profile: Veteran, 3 years of on-time rent at $1,600/month, 2 credit cards with low balances, one 30-day late payment from 2024 (resolved), steadily improving payment history
FICO middle score: 638 — qualifies for VA loan but at a higher rate tier (+0.50% pricing adjustment)
VantageScore middle score: 672 — trended data shows 24 months of improvement, rent payments counted
VantageScore after 20-point adjustment: 652 — still higher than FICO 638
Using VantageScore, this borrower moves from the 620–659 pricing tier to the 660+ tier.
On a $350,000 loan, that tier change saves approximately $75–$100/month — or $27,000–$36,000 over 30 years.
Want to See Both Your Scores?
We’ll pull your FICO and VantageScore simultaneously — at no cost — and use whichever gives you the better rate. Most lenders can’t do this yet. We can.
GET MY RATE →VantageScore 4.0 vs. Traditional FICO: Side by Side
| Feature | Traditional FICO | VantageScore 4.0 |
|---|---|---|
| How it evaluates credit | Point-in-time snapshot | 24-month trended behavior |
| Rent payments | Not included | Included (when reported) |
| Utility/telecom payments | Not included | Included (when reported) |
| Minimum credit history needed | 6 months + recent activity | 1 month + 1 account |
| People scored | ~200 million | ~233 million (+33 million more) |
| Recovering borrowers | Penalizes past events for years | Rewards improving trends |
| Score range | 300–850 | 300–850 |
| Used in mortgages since | 1990s | April 2026 |
| Cost to lenders | Higher | Significantly lower |
How It Works at Show Me Rates
Through our wholesale lending partner — one of only 21 lenders approved by FHFA for the VantageScore 4.0 rollout — here’s how we use it:
- Dual-score credit pull: When we pull your credit, both your FICO and VantageScore run automatically. You get to see both scores at no cost
- We use whichever is more favorable: If your VantageScore qualifies you for a better rate tier than your FICO, we use the VantageScore. If FICO is higher, we use FICO. You always get the best available outcome
- Available on conventional loans: VantageScore 4.0 is currently approved for conventional loans sold to Fannie Mae and Freddie Mac. FHA implementation is in process. VA loans follow VA guidelines separately
- Wholesale rates: Because we work through a wholesale channel, you get institutional pricing that retail lenders and big banks can’t match — combined with the VantageScore advantage
- Fast closing: Our wholesale platform is built for speed. Preapproval in hours, not days. Clear-to-close in 2–3 weeks on most files
Why Most Lenders Don’t Offer This Yet
FHFA approved only 21 lenders for the initial VantageScore 4.0 rollout. The majority of banks, credit unions, and mortgage companies in the country are still using FICO exclusively. They’ll eventually transition, but it will take months or years for full industry adoption.
If you walk into your local bank or credit union today and ask about VantageScore for your mortgage, chances are they’ll say they don’t offer it. If you call most retail mortgage companies, same answer. The few lenders who do have it are the ones who moved fastest to adopt the new FHFA framework — and we’re connected to one of them.
This is a genuine competitive advantage right now. Borrowers who use VantageScore through an approved lender today are accessing a scoring model that better reflects their financial reality — while everyone else is still being evaluated under a decades-old system that ignores rent payments and punishes past mistakes without crediting recent improvement.
What You Need to Do to Take Advantage
- Make sure your rent is being reported: VantageScore can only count your rent payments if they appear on your credit report. Ask your landlord if they report to the credit bureaus, or sign up for a rent reporting service (many cost under $5/month)
- Verify utility and phone payments are on your report: Some utility companies and telecom providers report payment history. Check your credit report to see if yours does
- Keep paying everything on time: VantageScore’s 24-month trended data rewards consistency. Every on-time payment strengthens your trend
- Pay down revolving balances: Just like FICO, lower credit utilization helps. But with VantageScore, the downward trend in your balances is visible and rewarded
- Work with a lender who has access: This is the most important step. If your lender doesn’t offer VantageScore 4.0, you’re being evaluated solely on FICO — and potentially missing a better score that could save you money
Frequently Asked Questions
Does VantageScore apply to VA loans?
VA loans follow Department of Veterans Affairs guidelines, which are separate from the FHFA announcement. The VA has not yet announced VantageScore adoption for VA-specific underwriting. However, if you’re eligible for a conventional loan in addition to a VA loan, VantageScore may give you a better outcome on the conventional side. Your VA Loan Specialist can compare both options. For full VA eligibility details, see our VA Loan Eligibility Requirements guide.
Will my VantageScore always be higher than my FICO?
Not always. VantageScore tends to produce higher scores for borrowers with limited traditional credit, strong rent payment history, or improving financial trends. But for borrowers with long credit histories and established accounts, FICO may be equal or higher. That’s why we pull both — you use whichever is better.
Does using VantageScore cost me anything extra?
No. Through our lending partner’s platform, the dual-score credit pull is provided at no additional cost to you. Both scores run automatically when your credit is pulled.
Is this a soft or hard credit pull?
A mortgage credit pull is a hard inquiry. However, under federal law, multiple mortgage credit inquiries within a 14–45 day window (depending on the scoring model) count as a single inquiry. Shopping rates doesn’t tank your score.
What’s the maximum LTV for VantageScore right now?
Currently, VantageScore is available for conventional loans with a maximum loan-to-value (LTV) of 80%. This means you’ll need at least 20% equity or down payment to use VantageScore. For lower down payments, FICO remains the scoring model. This limit may expand as the rollout progresses.
See If VantageScore Gets You a Better Rate
We’ll pull both your FICO and VantageScore at no cost and use whichever score works best for you. Most lenders don’t offer this yet. No hard credit check for initial consultation. No obligation.
GET MY RATE →