New Credit Scoring Option

July 31, 2025•1 min read

A New Credit Scoring Option Could Help More People Buy Homes

Good news for current and future homeowners: Fannie Mae and Freddie Mac will now accept VantageScore 4.0, alongside traditional FICO scores. This change—announced by FHFA Director Bill Pulte—is expected to help more people qualify for home loans and could even lower some borrowing costs.

So, what’s different about VantageScore?

Unlike traditional scoring models, VantageScore 4.0 uses a wider range of data, including rent, utility, and cell phone payments. That means people with limited credit history—or “thin” credit files—now have a better chance of getting approved. It also eliminates the six-month waiting period required by other scoring models. Experts estimate this could make up to 5 million more people eligible for a mortgage.

Beyond improving access to credit, VantageScore could also help reduce closing costs and make the mortgage process more transparent.

Want to See Your VantageScore?

You can check your VantageScore for free on popular personal finance sites like Credit Karma. Many banks and credit card companies also provide free access through their websites or mobile apps.

This update is a big step toward a fairer, more inclusive lending system—and it could make a real difference for anyone looking to buy their first home, upgrade, or refinance.

Jennifer Blau

Jen brings a wealth of experience from the financial services industry, starting as a Certified Financial Planner and later earning her MBA in Finance from Duke University. After working in Corporate Bond Sales and raising three daughters, she joined Team Pogue Real Estate, where she’s spent over a decade building community relationships. With a deep understanding of both finance and family life, Jen offers a personalized, thoughtful approach as a mortgage loan originator—committed to helping families find the right path to financial stability and homeownership.

Back to Blog