If you've ever applied for a mortgage, chances are you saw that familiar credit score pull: the FICO^® score. But as of July 8, 2025, that changed, and it could mean better costs and access for homebuyers like you.

What Changed?

• Federal Housing Finance Agency (FHFA) Director Bill Pulte recently announced that Fannie Mae and Freddie Mac, the companies that buy up the majority of the country’s home loans, will now accept a second credit scoring model for mortgages called VantageScore 4.0. 
• VantageScore 4.0 is a credit scoring alternative to FICO^®. Both are credit scoring models used by lenders, but each model gives different levels of importance to different information in your credit reports. VantageScore incorporates data like rent and utility payments in credit history, which can be helpful for borrowers whose credit histories aren’t well captured by FICO^®. The existing tri-merge credit report—which pulls from the three credit bureaus Equifax, Experian, and TransUnion—remains in place. 
• This breaks a decades-long FICO^® monopoly and introduces competition that could drive down costs and increase access to mortgages (which is good news for buyers!).

Why It Matters for You

1. Lower Fees = Lower Closing Costs: FICO^® fees to lenders have skyrocketed – from around $0.60 in 2018 to nearly $5 per pull today. This change gives lenders the power to choose a lower-cost scoring model (VantageScore 4.0), potentially saving you money.
2. Credit Scores That Fit Your Story: VantageScore includes rent, utilities, and more. That means if you’ve consistently paid rent but don’t have much credit history, you could still qualify for a mortgage. 

What You Should Do Now

• Ask your lender or broker which credit model they’re using—FICO^® or VantageScore 4.0? They’ll now have the option of either.
• Shop around. Different lenders may offer different models, rates, and fees. Check out my blog, 4 Questions to Ask as You Shop for a Mortgage, to help you prepare for those conversations. 
• Work with someone who stays ahead of the curve, someone who can explain these changes clearly and help you take advantage of them – like the Leo Anzoleaga Group!

The Big Takeaway

Credit scores are more than just numbers; they help pave your way to homeownership. These changes to mortgage credit score requirements could help you gain greater access, smarter pricing, and better credit models for home financing.

If you're curious how this affects your homebuying journey, text me at (202) 951-8484, shoot me an email at Leo@Anzoleaga.com or easily schedule your free initial consultation with my team here.