Effective immediately, the Federal Housing Finance Agency (FHFA), along with Fannie Mae and Freddie Mac, has approved VantageScore 4.0 mortgage credit scoring models for use on loans delivered to the GSEs (Government-Sponsored Enterprises). This marks one of the most significant updates in mortgage lending in years—and it has the potential to expand access to homeownership across the country.

At North Star Mortgage Network, we’re committed to helping our clients and industry partners understand exactly how this shift will affect the loan process and what benefits it may offer to both borrowers and lenders.

What Is the VantageScore 4.0 Mortgage Update?

The VantageScore 4.0 mortgage update gives lenders the ability to choose between two approved credit scoring models—Classic FICO or VantageScore 4.0—on a per-loan basis. In previous years, lenders were required to use one standard model for all loans. This new flexibility allows lenders to select the model that best reflects a borrower’s credit profile.

While FICO 10T remains on the roadmap for future implementation, it is not currently approved. The GSEs have made clear that VantageScore 4.0 mortgage scoring is the priority for near-term rollout.

Why This Matters for Borrowers

VantageScore 4.0 includes more modern scoring criteria that take into account rental payments, utility bills, and other non-traditional forms of credit history. This is a big win for consumers with limited or “thin” credit files.

According to the FHFA and VantageScore, this model could bring over 30 million consumers into the mortgage market who might not otherwise qualify under FICO alone. In today’s tight housing market, this is a major opportunity to help hardworking families secure financing—especially first-time buyers and those without traditional credit histories.

Key Takeaways for Lenders

  • Lenders can now choose either Classic FICO or VantageScore 4.0 for loans delivered to Fannie Mae or Freddie Mac.
  • You only need to use one score model per loan—not both.
  • VantageScore 4.0 mortgage models may reflect more recent borrower behavior and open more approvals.
  • FHFA is finalizing guidance for Desktop Underwriter (DU) and Loan Product Advisor (LPA) updates to support this change.

This policy shift is expected to simplify workflows, reduce credit report costs, and create a more competitive lending environment—all without increasing risk.

What This Means for Our Clients

At North Star Mortgage Network, our mission has always been to guide our clients with integrity and insight. The VantageScore 4.0 mortgage rule is one more tool we can use to help more buyers qualify for a home loan—with greater accuracy and fairness.

If you’re a homebuyer with limited credit history, or if you’ve been told in the past that you don’t qualify based on your FICO score, this is a great time to have your credit re-evaluated.

Likewise, real estate professionals and referral partners—this is the moment to re-engage with buyers who may have been on the sidelines.

Stay Informed with North Star Mortgage

We’re watching these changes closely and will provide updates as the GSEs release further guidance and timelines. If you have questions about how the VantageScore 4.0 mortgage changes could benefit you or your clients, don’t hesitate to reach out.

Your best interest is our principal concern.

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