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For decades, your FICO Classic score decided your mortgage. That is changing. In April 2026, the FHFA and HUD approved two newer models, VantageScore 4.0 and FICO 10T, for mortgage underwriting alongside Classic FICO. For first-time buyers and people with thin credit files, this could be the difference between qualifying and being turned away, because the new models score more people and reward improving credit. The rollout is gradual, but the direction is clear. Here is what it means and what to do before you apply.
Key Takeaways
- VantageScore 4.0 and FICO 10T are now approved for mortgages alongside Classic FICO.
- They score more people and use trended data, rewarding falling balances and thin files.
- The rollout is gradual, so not every lender uses the new models yet.
- Renters can benefit; report your rent so the new models can see it.
What Changed and When?
In April 2026, the FHFA (which oversees Fannie Mae and Freddie Mac) and HUD approved VantageScore 4.0 and FICO 10T for mortgage underwriting, alongside the long-dominant Classic FICO. FHFA Director Bill Pulte announced the change for conventional loans, and HUD Secretary Scott Turner separately announced FHA would permit the new models too. This is a staged rollout to approved lenders first, not an instant industry-wide switch, but it ends Classic FICO’s status as the only path to a mortgage. See our guide on FICO vs VantageScore.
Why Are the New Models Different?
Classic FICO, dominant since the 1990s, looks only at traditional credit (cards, auto, student loans) and ignores rent, utilities, and phone payments, even though rent is often a renter’s largest obligation.
VantageScore 4.0 uses trended data, looking at whether your balances are rising or falling over time, not just today’s snapshot, so a steady debt-payer looks better than a debt-accumulator with the same current balance. It also scores more people, generating a score with as little as one month of history and one account reported in 24 months, where Classic FICO needs at least six months. Millions who are “unscorable” today could get a score.
FICO 10T (the T is for trended) similarly uses 24 months of payment patterns rather than a snapshot and weighs recent behavior more heavily, helping borrowers who cleaned up their finances in the last two years. Both models are designed to predict default risk more accurately than Classic FICO.
Who Benefits Most?
Renters with strong payment histories. If you have paid rent on time for years but have limited card and loan history, the new models can score you higher when that rent is reported. One step to take now: sign up for a rent-reporting service (Experian RentBureau, Rental Kharma, RentTrack), often $0 to $10 a month, so your on-time rent reaches the bureaus.
Thin-file borrowers. Young adults, recent immigrants, and debt-avoiders often have too little history for Classic FICO but enough for VantageScore 4.0, potentially opening mortgage access to people who were previously invisible.
People who paid down debt recently. If you cut balances from, say, $15,000 to $3,000 over two years, the trended models capture that trajectory, making you look stronger than someone who climbed to the same $3,000.
Who Does It Not Help Yet?
The rollout is limited, so if your lender has not adopted the new models, you will still be scored on Classic FICO. The models also do not override the other factors in approval: debt-to-income ratio, down payment, employment history, and the property. A better score helps, but it will not fix a 50% DTI or a tiny down payment on a jumbo loan. See our guide on the credit score needed for a mortgage.
What Does This Mean for Your Score Number?
Your VantageScore 4.0 and FICO Classic score may differ, and neither is “wrong”; they are calculated differently. You might have a 680 FICO Classic and a 710 VantageScore 4.0, or the reverse. When mortgage shopping, ask each lender which model they use. You can check your VantageScore 4.0 free through Credit Karma, while FICO 10T is newer and less available for free, though some lenders pull it during pre-qualification.
What Should You Do Before You Apply?
- Sign up for rent reporting if you are a renter with a strong history, to add on-time rent to your file.
- Check your VantageScore 4.0 (Credit Karma) and compare it to your FICO Classic (myFICO).
- Ask your lender which model they use, and whether they participate in the new conventional or FHA programs.
- Pay down revolving balances over 6 to 12 months, which the trended models reward more explicitly.
- Do not open new accounts in the 6 months before applying, since both models still count inquiries and new accounts negatively.
See our guide on improving your score fast.
FAQ
Are VantageScore 4.0 and FICO 10T used for mortgages now?
As of April 2026, yes, they are approved alongside Classic FICO for conventional and FHA loans, but adoption is gradual, so not every lender uses them yet.
How do the new models help first-time buyers?
They score people with thinner files and use trended data and rent history, so renters and those who recently paid down debt can score higher than under Classic FICO.
Should I report my rent to the credit bureaus?
If you are a renter with a strong payment history, yes. A rent-reporting service adds your on-time rent to your file so the new models can factor it in, often for $0 to $10 a month.
Will the new models guarantee mortgage approval?
No. A higher score helps, but approval still depends on your debt-to-income ratio, down payment, income, and the property. The new models remove a score barrier, not the other requirements.
Bottom Line
VantageScore 4.0 and FICO 10T are now approved for mortgages alongside Classic FICO, and by scoring thin files and rewarding improving credit, they can open homeownership to renters and first-time buyers previously shut out. Report your rent, check both scores, ask your lender which they use, and keep paying down balances. To go deeper, see our guides on FICO vs VantageScore, the credit score needed for a mortgage, and improving your score fast.
This article is for educational and informational purposes only and does not constitute financial or mortgage advice. Model adoption is rolling out gradually, so confirm which score your lender uses before applying.
