Rocket Mortgage is moving beyond simply offering an alternative to FICO.
After roughly four months of testing VantageScore 4.0 alongside FICO, the lender says it will make VantageScore its preferred credit-scoring model for eligible loans during the fourth quarter — one of the clearest signs yet that the mortgage industry's new credit-score competition is beginning to influence how lenders actually structure loans.
Rocket said it has obtained 1.4 million credit reports using both VantageScore and FICO so far this year. Its testing found that VantageScore 4.0 allowed more clients to meet credit requirements and move forward in the mortgage process.
Among borrowers who saved money when evaluated using VantageScore 4.0, Rocket said the average savings was $1,600 at closing.
During the fourth quarter, Rocket Mortgage will default to VantageScore 4.0 on eligible direct-to-consumer mortgages, including loans delivered to Fannie Mae and Freddie Mac and eligible VA loans.
"The mortgage industry has relied on one credit scoring model for decades," Rocket Mortgage CEO Jay Bray said. "Competition is healthy, especially when it can lower costs and expand responsible access to homeownership. We did the work, compared the models, and chose the one that helped more qualified clients."
From Choice To Preference
The change comes less than three weeks after the Federal Housing Finance Agency opened VantageScore 4.0 to all approved Fannie Mae and Freddie Mac lenders, removing a previous limitation that required lenders to receive approval to participate in the rollout.
Lenders can currently choose between Classic FICO and VantageScore 4.0 for eligible mortgages sold to the government-sponsored enterprises. Classic FICO remains an approved scoring model, while FICO Score 10T has been approved but is not yet eligible for GSE loan deliveries.
Rocket's decision goes a step further, making VantageScore 4.0 the starting point for eligible direct-to-consumer loans rather than simply another available option.
VantageScore 4.0 uses trended credit data that considers changes in balances and payment behavior over time. It can also incorporate rent and utility payment information when that data appears in a consumer's credit file, potentially generating scores for some consumers with limited traditional credit histories.
Mortgage approval, however, still depends on other underwriting factors including income, assets, debt, loan-to-value ratio, and property eligibility. A higher or newly available credit score does not by itself make a borrower eligible for a mortgage.
Rocket Pro Keeps Both Scores For Brokers
Rocket is taking a different approach with its wholesale channel.
Rocket Pro, the company's broker-facing division, will continue providing mortgage brokers with both VantageScore and FICO, rather than defaulting brokers to one model.
That gives brokers the ability to compare scoring outcomes for eligible borrowers, potentially identifying cases in which one model produces better pricing or qualification results.
Rocket's approach resembles the strategy already being used by United Wholesale Mortgage.
Last week, UWM said approximately one in four borrowers in its pipeline was receiving a more advantageous result with VantageScore 4.0 compared with Classic FICO.
UWM said those differences can translate into a lower mortgage rate or reduced loan-level price adjustments. The wholesale lender expected the share of borrowers receiving a more favorable result to reach 40% by the end of September as adoption increased.
Not Every Rocket Loan Is Switching
The change does not extend across Rocket's entire mortgage business.
Investment-property and second-home mortgages, home equity loans, FHA mortgages, jumbo loans, and some other products will continue using FICO scores for now, according to Rocket.
The distinction is particularly notable for FHA lending. The Federal Housing Administration has announced plans to begin accepting VantageScore 4.0 and FICO Score 10T beginning Jan. 1, 2027.
Rocket said it will continue evaluating additional scoring options as they become available.
For loan originators, the shift means credit-score choice can now directly affect borrower eligibility and pricing. Early results from UWM and Rocket show the models do not always produce the same outcome.
Rocket is responding by making VantageScore its preferred model for eligible retail loans. Rocket Pro is taking a different approach, keeping both scores available so brokers can compare outcomes for eligible borrowers.
