FHA-approved lenders will be able to use FICO Score 10T and VantageScore 4.0 for mortgage underwriting beginning Jan. 1, 2027, according to separate announcements Thursday from the two credit-scoring companies.
The shared start date moves the Federal Housing Administration’s credit-score overhaul from approval toward implementation while introducing direct competition between two models that use trended credit data. Neither announcement indicated that lenders would be required to adopt both models.
For loan originators, the practical impact will depend on which lenders adopt either model and when. No FHA-approved lender had publicly announced plans Thursday to begin using FICO 10T or VantageScore 4.0 specifically for FHA underwriting on Jan. 1.
FHA announced in April that it would permit both models. The decision was part of a broader federal effort to introduce competition into a mortgage market long dominated by older FICO scores.
At the same time, the Federal Housing Finance Agency opened the door for Fannie Mae and Freddie Mac lenders to use VantageScore 4.0, with support for FICO 10T expected to follow.
Two Models, Different Results
FICO 10T and VantageScore 4.0 both consider changes in a consumer’s credit behavior over time. Trended data can show whether balances are rising, falling, or remaining stable instead of providing only a snapshot of the borrower’s accounts.
Both models can also incorporate reported rental-payment histories, which could affect the evaluation of renters and borrowers with limited traditional credit records.
That does not mean either model will produce a higher score for every applicant. Results will depend on the borrower’s credit profile, the information reported to the credit bureaus, and the methodology used by each model.
FICO described Score 10T as its most predictive mortgage score and said it outperformed competing models by more than 10% when applied to FHA first-time homebuyer mortgages. The company did not provide the underlying analysis or methodology with its announcement, so the comparison could not be independently evaluated.
“FHA’s announcement provides valuable clarity for the industry and allows stakeholders to continue preparing for implementation in a thoughtful and deliberate manner,” said Julie May, vice president and general manager of B2B Scores at FICO.
FICO said Score 10T is available at no charge alongside Classic FICO through its FICO Score 10T Free Access program. That does not necessarily eliminate expenses associated with credit reports, resellers, system integrations, or changes to lender underwriting processes.
VantageScore, meanwhile, said its model can generate scores for 33 million more consumers than traditional models. The company did not specify how many of those consumers would qualify for an FHA mortgage or how many would receive a different underwriting result.
“One of the most significant purchases Americans get to make in their lifetimes is their first home,” said Tony Hutchinson, executive vice president and head of public affairs at VantageScore. “We thank Secretary of Housing and Urban Development Scott Turner and acting FHA Director and Ginnie Mae President Joseph Gormley for opening up another opportunity to expand access to affordable housing for all creditworthy Americans.”
Lender Adoption Remains The Question
VantageScore said Rocket Mortgage and United Wholesale Mortgage are among the companies that have adopted VantageScore 4.0 for mortgage lending since May. Its announcement did not specify whether either lender plans to use the model for FHA underwriting beginning Jan. 1.
CrossCountry Mortgage has promoted its use of FICO 10T in mortgage-backed securities, but it likewise has not publicly committed to using the model for FHA underwriting on the start date.
The lack of lender-specific FHA announcements leaves originators without an immediate list of companies that will offer either model. Brokers will need to determine which scoring options their wholesale partners accept and whether borrowers can be evaluated under more than one model.
The rollout comes as federal officials consider broader changes to the mortgage credit-reporting system. FHFA is also studying whether lenders could rely on a single credit report instead of the traditional tri-merge report, a change the agency has linked to lowering borrowing costs.
The initiatives address separate parts of the process. FICO 10T and VantageScore 4.0 change how credit information is evaluated. A move away from tri-merge reports could change how much bureau information lenders obtain.
Together, those changes could require lenders to update contracts, automated underwriting systems, quality-control procedures, and borrower-disclosure workflows.
The Jan. 1 start date gives FHA lenders two modern scoring options. Whether borrowers experience that choice will depend on how many lenders actually use them.
