Fannie Mae and Freddie Mac will allow lenders the option to use VantageScore 4.0 while still allowing use of FICO to assess the creditworthiness of mortgages, Federal Housing Finance Agency Director Bill Pulte announced on a post on X.
As a result of the change, Pulte said homebuyers can now use rental payments to qualify for a mortgage, as VantageScore incorporates rent into its credit scoring model.
The policy change announced yesterday is separate than the one proposed during the Biden administration, in which FHFA explored establishing new credit score requirements for single-family loans acquired by Fannie Mae and Freddie Mac. The previous proposal had been scheduled to take effect later this year but has been postponed indefinitely.
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