VantageScore now in mortgage mix

Thirty-seven percent. That is the share of conventional mortgage applications processed through Fannie Mae’s Desktop Underwriter system in September 2026 that included a VantageScore 4.0 credit score.

The number signals a shift in a market where FICO scores had held a virtual monopoly for decades. Fannie Mae, which purchases mortgages from lenders to fund new home loans, has begun using the alternative scoring model for eligible loans. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, allowed participating lenders to use VantageScore 4.0 starting in April 2026. On September 9, the agency expanded that option to all approved lenders.

VantageScore was developed in 2006 by Equifax, Experian, and TransUnion. Like FICO, it assigns a number between 300 and 850. However, the two systems use different formulas to calculate that number. FICO places heavy weight on payment history, which accounts for about 35% of the score. VantageScore 4.0 also analyzes trends in credit behavior over time. This means a consumer paying down balances might see a different score than someone carrying the same debt month after month.

Consumers often do not realize they hold multiple credit scores. Because creditors report to different bureaus, the same person can have different scores depending on the model and the data source. A score of 680 from one system may not equal a score of 720 from another. Lenders decide which model to use when evaluating a loan application. They combine that score with income, existing debt, and employment history to make a decision.

The shift matters for homebuyers because VantageScore can incorporate eligible rent-payment information. This may help borrowers whose financial responsibility is not fully shown by traditional credit history. FICO has responded with its own FICO 10T model, which also analyzes changes in consumer behavior.

Lenders are not required to use VantageScore, and a higher score under the new model does not guarantee approval or better rates. The choice of scoring model can influence interest rates and loan terms. Consumers should ask lenders which model they use before applying for major credit.

The credit reporting agencies maintain the underlying data, while FICO and VantageScore provide the mathematical models. Lenders make the final call on whether to extend credit. For now, the mortgage market is moving away from a single standard.