A groundbreaking decision by the FHFA just made homeownership more accessible to millions of Americans, especially renters and those with limited credit histories. Effective immediately, lenders can choose to use VantageScore 4.0 when evaluating mortgage applicants, as cited by Forbes.

We are expanding credit access to millions of forgotten Americans - people who live in rural areas, renters who pay their rent on time every month - and bringing down closing costs,” said FHFA Director Bill Pulte, who announced the FHFA’s decision on July 8, 2025.

This policy change is a big win for first-time buyers, renters, and those with thin credit histories. VantageScore 4.0 uses rent, utility payments, and other nontraditional data to assess credit, while ignoring medical debt and paid collections.

So, a consumer can get a score with just one month of credit history, including rent, utility, and cellphone payments. By including a broader range of important payments that consumers make each day, VantageScore 4.0 is a more modern and consumer-friendly model.

For more information on VantageScore 4.0 implementation, please visit VantageScore’s Mortgage landing page.

https://www.forbes.com/advisor/d/vantagescore-4-mortgages-how-it-impacts-homebuyers/