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Fannie Mae and Freddie Mac are making a major change in the way Americans can qualify for a mortgage.
The government-backed mortgage giants said Wednesday they will begin allowing loans that are evaluated using VantageScore 4.0, a newer credit scoring model that can include data such as history of rent and utility payments.
The change will initially be implemented on a limited basis, starting with a group of approved lenders, as part of a broader credit scoring modernization led by the Federal Housing Finance Agency (FHFA).
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“It is only because of President Trump’s landslide victory and leadership that we have finally broken the logjam to do this – what is good for the American people over Washington’s special interest,” FHFA Director William Pulte said at a news conference Wednesday.
“Fannie and Freddie, as I said, are prepared to immediately work with approved lenders to accept VantageScore loans.”
Single-family homes line the streets of Thousand Oaks, California, April 2, 2026. (Kevin Carter/Getty Images)
Pulte added that Freddie Mac has already begun testing the model and has received approximately $10 million in loans that have been evaluated using VantageScore and are expected to be securitized.
“If you’ve paid your rent for 10 years, that should be factored into your credit score,” Pulte said. “So I think it will save a lot of money. And this really is the golden age of home buying.”
He also estimated that the change could affect “tens of millions” of Americans.
During the limited rollout, approved lenders can choose between VantageScore 4.0 and traditional FICO scores.
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Someone hands over a house key to another individual. (iStock)
A second updated model, FICO Score 10T, is also expected to be introduced as part of the modernization initiative.
FICO 10T also takes into account both positive and negative rental payment history when reporting it to credit bureaus.
“By integrating newer models with more predictive power, we can support sustainable access to homeownership and focus on safety, soundness and operational readiness,” Jake Williamson, executive vice president and head of single-family housing at Fannie Mae, said in a statement.
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A for sale sign for a single-family home. (iStock)
Efforts to modernize credit scoring have been underway for years. According to Freddie Mac, federal regulators approved both VantageScore 4.0 and FICO 10T in 2022 after extensive testing.
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Pulte also flagged the shift last year, noting in a post on X that “credit history will no longer just include credit cards and loans.”
