In a significant advancement for the U.S. mortgage market, the Federal Housing Finance Agency (FHFA) and the Federal Housing Administration (FHA) today announced the full implementation of the VantageScore 4.0 credit score across the government-sponsored mortgage sector. Following FHFA’s July 2025 approval of VantageScore 4.0 for use in Fannie Mae and Freddie Mac mortgages, today’s announcements confirm that implementation is in place at Fannie Mae and Freddie Mac and additionally that the FHA has accepted VantageScore 4.0 and commenced an implementation. Together, these milestones significantly reduce costs for American consumers and mortgage lenders by as much as $1 billion in the first year of mortgage credit score competition.
This historic announcement by both FHFA and the FHA will result in modernization of the mortgage industry, delivering reduced mortgage risk, reduced costs for consumers and mortgage lenders, and enhanced mortgage access for creditworthy Americans,” said Silvio Tavares, President and CEO of VantageScore.
VantageScore 4.0 uses trended credit report data, alternative data and advanced analytics to deliver more predictive consumer credit scores. The credit score evaluates millions of consumers who are often missed by outdated, traditional credit scoring models and enhances mortgage risk-prediction performance, effectively allowing more creditworthy Americans access to housing finance.
Key insights on the adoption of VantageScore 4.0 into the mortgage industry include:
FHFA DIRECTOR ANNOUNCES IMMEDIATE ACCEPTANCE OF VANTAGESCORED LOANS FOR FANNIE AND FREDDIE MAC: Fannie Mae and Freddie Mac are accepting VantageScore 4.0 for mortgage loans from all approved lenders, effective immediately, and will also update their selling guides to include VantageScore credit scores, completing the full implementation of the 2018 Credit Score Competition Law.
HUD SECRETARY ANNOUNCES NEW ACCEPTANCE AND IMPLEMENTATION OF VANTAGESCORE 4.0 FOR FHA LOANS: HUD will also allow the use of VantageScore 4.0 for FHA mortgage loans. Over 80% of all FHA-insured mortgages went to first-time homebuyers in 2024, signaling the organization’s commitment to helping more creditworthy Americans purchase their first home.
VANTAGESCORE 4.0 MORTGAGE IMPLEMENTATION USHERS IN NEW ERA OF COMPETITION, MODERNIZATION AND COST SAVINGS FOR AMERICAN CONSUMERS: Several independent studies indicate that VantageScore 4.0 is the most rigorous and predictive credit scoring model used in the U.S. mortgage market. Further, studies show its adoption could save lenders up to $1 billion, making it the more cost-effective option for lenders and consumers alike.
Mortgage lenders are encouraged to explore the benefits of VantageScore 4.0 by visiting the VantageScore Mortgage Resource Center or contact us. Lenders and partners interested in adopting VantageScore models or participating in pilot programs can contact their credit bureau representatives:
Equifax: mortgage_inquiries@equifax.com
Experian: mortgages@experian.com
TransUnion: TU_Mortgage@transunion.com
