Mortgage Lenders Have a New Way to Read Your Credit Score

Mortgage lenders now have a second credit score they can use, and FHA joins in January. Here's what changed, what it means for your score, and what to do before you apply. (5 min. read)

For decades, almost every mortgage in America was approved using one family of credit scores: Classic FICO. That changed this fall. Lenders now have a second option, and it could affect how your credit is read when you apply for a home loan.  

Here's what changed, what it means for buyers in Marietta, Smyrna, Kennesaw and across Metro Atlanta, and what you should do about it.

What Changed in 2026 📣

April 2026: Fannie Mae and Freddie Mac began a limited rollout of VantageScore 4.0 for mortgages.
September 9, 2026: Every lender approved by Fannie Mae and Freddie Mac can now use VantageScore 4.0 instead of Classic FICO on conventional loans.
September 30, 2026: Upfront loan fees were aligned, so a lender using VantageScore 4.0 isn't charged differently than one using Classic FICO.
January 1, 2027: FHA will accept VantageScore 4.0 and FICO Score 10T alongside Classic FICO, for FHA case numbers assigned on or after that date.

A few things did not change. Classic FICO is still allowed, and no retirement date has been set. FICO Score 10T isn't accepted on Fannie Mae and Freddie Mac loans yet. And lenders still pull reports from all three credit bureaus.

Who Picks the Score?

The lender does, not the borrower. Each lender decides which model to use, and everyone on the same loan has to be scored with the same model. You can't ask a lender to use whichever score is higher. What you can do is ask.

Let us help you!

A good loan officer will tell you which model they use and what your scores look like before you make any decisions.

How VantageScore 4.0 Looks at Your Credit Differently

Both scores use the same 300 to 850 range, but they don't read your credit exactly the same way.

It looks at trends, not just a snapshot. VantageScore 4.0 uses trended data, meaning how your balances have moved over time. Someone steadily paying down cards can look better than someone whose balance happened to be low on the day the report was pulled.
Paid collections don't count against you. VantageScore 4.0 excludes collection accounts that have been paid.
Medical collections aren't used. VantageScore says its models stopped using medical collections in 2023.
Rent, utility and phone payments can help, but only when they're reported to the credit bureaus. Many landlords and utility companies don't report, so don't assume yours does.
Thin credit files can be scored. VantageScore says it can score people with limited credit history whom older models can't. That doesn't mean your score will be higher. For some people it will be, for others it will be lower, and for many it will land about the same. The only way to know is to check.

That doesn't mean your score will be higher. For some people it will be, for others it will be lower, and for many it will land about the same. The only way to know is to check.

The Score on Credit Websites May Not Be the Score Your Lender Sees

Many free credit websites show an older VantageScore version or a different FICO version than the ones mortgage lenders use. That's why buyers are sometimes surprised by a number that's 20 or 40 points different from what they expected. Use a credit website to watch the direction your credit is heading. Use a lender to find out where you actually stand.

What This Means If You're Buying in Georgia ⭐

If you were told you were a few points short in the past year, it may be worth a fresh look. Different lenders, different models and a few months of better habits can all change the picture.
If you're planning an FHA loan, the new options start with case numbers assigned on or after January 1, 2027.
If you're building credit, the basics haven't changed: pay on time, keep balances low and avoid new debt before you apply. Our guide to improving your credit score walks through each step: 7 Ways to Improve Your Credit Score Before Applying for a Mortgage (Including What's New in 2026)
If you're trying to figure out your budget, start with real numbers. Here's our guide to how much house you can afford: How Much House Can You Afford in Metro Atlanta? (AI Can't Answer This)

We help buyers across Fulton, Cobb, DeKalb, Gwinnett, Clayton, Douglas, Cherokee, Fayette, Forsyth, Henry, and Rockdale counties, including Marietta, Smyrna, Kennesaw, Acworth, Woodstock, Roswell, and Sandy Springs.

The Bottom Line

The new scoring options give lenders another way to read your credit, and for some buyers that could open a door that was closed a year ago. It's not a shortcut, and it's not a guarantee. It's a good reason to get a current, accurate look at where you stand.

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This article is for general information only. All loans are subject to credit approval, income verification, and underwriting guidelines. Credit score models and lender requirements may change.