The Federal Housing Administration (FHA) will accept mortgage collateral backed by the VantageScore 4.0 credit scoring model starting on January 1, 2027. Mortgages issued by the FHA account for nearly 20% of annual mortgages in the United States. The change reflects longstanding efforts to expand access to homeownership for creditworthy, working-class Americans, in line with the Federal Housing Finance Agency’s (FHFA) mandate to accept collateral using the more inclusive and predictive VantageScore 4.0. With this announcement, VantageScore 4.0 is now the only modern, trended data mortgage credit score implemented at all Government-Sponsored Enterprises (GSEs), including Fannie Mae, Freddie Mac, Federal Home Loan Banks, the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs.

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FHA to Accept VantageScore 4.0 on January 1, 2027

FHA to Accept VantageScore 4.0 on January 1, 2027

“One of the most significant purchases Americans get to make in their lifetimes is their first home. We thank Secretary of Housing and Urban Development Scott Turner and acting FHA Director and Ginnie Mae President Joseph Gormley for opening up another opportunity to expand access to affordable housing for all creditworthy Americans,” said Tony Hutchinson, EVP and Head of Public Affairs at VantageScore. “VantageScore enables more underserved Americans – such as rural Americans, veterans and active-duty service members – to access the financial products they need, ensuring that every creditworthy person has the opportunity to become a homeowner.”

This announcement follows the FHFA’s recent directive that all mortgages securitized by the GSEs, Fannie Mae and Freddie Mac, will now disclose a VantageScore 4.0 credit score in addition to a legacy score. Earlier this month, FHFA Director Pulte announced that Fannie Mae and Freddie Mac can now accept VantageScore 4.0 credit scores from all mortgage origination lenders. Since May 1, 2026, several of the largest mortgage lenders and mortgage industry participants have rapidly moved to adopt VantageScore 4.0 for mortgages, including the top two mortgage originators, Rocket Mortgage and United Wholesale Mortgage, along with the Federal Home Loan Banks, and the U.S. Department of Veterans Affairs.

A division of the U.S. Department of Housing and Urban Development (HUD), the FHA has been helping Americans become homeowners since 1934 and is one of the largest mortgage insurers in the world. FHA Home Loans offer favorable terms for buying, building, improving or refinancing homes, contingent upon a credit score.

VantageScore 4.0 gives lenders a more modern and predictive view of consumer credit risk, helping them responsibly identify qualified borrowers who may be overlooked by traditional credit scoring models. Don’t get left behind — explore piloting VantageScore 4.0 at www.vantagescore.com/lenders.

About VantageScore®

VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry’s most innovative, predictive and inclusive credit score models. In 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending.

VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.

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