Which Credit Score Do Mortgage Lenders Use? FICO vs VantageScore 4.0

Most mortgage lenders use one of the two Federal Housing Finance Agency-approved models currently eligible for delivery to Fannie Mae and Freddie Mac: Classic FICO or, since September 9, 2026, VantageScore 4.0. The lender picks the model, pulls it from all three national credit bureaus, and uses one representative score. This guide explains how that score is chosen, why it differs from your banking app, and what changes for FHA loans on January 1, 2027.

Key takeaways

• Lenders selling loans to Fannie Mae and Freddie Mac may use Classic FICO or VantageScore 4.0, which has been open to every approved lender since September 9, 2026 after a limited rollout that began April 22, 2026.
• The lender chooses the model for each loan and must use the same model for every borrower on that loan.
• A tri-merge report pulls all three national credit bureaus, and the lender uses the middle of three scores, the lower of two, and the lowest borrower's score on a multi-borrower loan.
• FICO 10T is not eligible for delivery to Fannie Mae or Freddie Mac as of October 2026; FHA will accept it and VantageScore 4.0 for case numbers assigned on or after January 1, 2027.
• The Consumer Financial Protection Bureau says multiple mortgage credit checks within a 45-day window are recorded as a single inquiry.

Which credit score do mortgage lenders use?

Mortgage lenders use a mortgage-specific score from a model approved by the Federal Housing Finance Agency (FHFA), which as of October 2026 means Classic FICO or VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac, pulled from all three national credit bureaus and reduced to one representative score for pricing and eligibility.

What changed on September 9, 2026

On September 9, 2026, FHFA expanded VantageScore 4.0 availability from the limited rollout that began April 22, 2026 to every Fannie Mae and Freddie Mac approved lender. On September 30, 2026, Fannie Mae and Freddie Mac published adjustments to their upfront fees to align pricing across the two models, effective for loans purchased on or after October 1, 2026.

What is a tri-merge credit report?

A tri-merge credit report is a single report that combines your credit files from all three national credit bureaus and shows a score from each under the model the lender ordered. Fannie Mae and Freddie Mac deliveries still run on tri-merge reporting, and the U.S. Department of Housing and Urban Development (HUD) states in Mortgagee Letter 2026-11 that "FHA will continue to require a tri-merge credit report" after the newer models arrive.

How does a lender pick one score from three?

The rule is the same at Fannie Mae and at FHA: the middle of three differing scores, the lower of two, or the single score available. With several borrowers, Fannie Mae's Selling Guide B3-5.1-02 prices every loan on the lowest borrower score, while a manually underwritten loan with several borrowers tests its minimum against the average of the borrowers' median scores. FHA's Minimum Decision Credit Score (MDCS), the score FHA tests against its 500 and 580 thresholds, is likewise the lowest borrower-level score.

So if your three scores are 712, 698, and 731, the lender prices the loan at 712. If a co-borrower's middle score is 684, the loan is priced at 684.

What is bi-merge, and is it happening?

Bi-merge means pulling two bureau files instead of three. On February 29, 2024, FHFA tied its start to the transition away from Classic FICO, and neither has a date, so as of October 14, 2026 conforming loans are still delivered on tri-merge reports. FHFA's policy page, last updated October 2, 2026, says current credit reporting requirements are unchanged.

Is VantageScore 4.0 accepted for a mortgage now?

Yes. Since September 9, 2026, every Fannie Mae and Freddie Mac approved lender may use VantageScore 4.0 without prior written approval, and FHA will accept it for case numbers assigned on or after January 1, 2027. Whether a given lender uses it is that lender's choice.

What can VantageScore 4.0 count that Classic FICO does not?

HUD's Mortgagee Letter 2026-11 describes FICO 10T and VantageScore 4.0 as models that use trended data, which tracks credit behavior over time, and non-traditional credit such as rent and utility payments. VantageScore, the model's developer, says its models use rent and utility information when it is reported to the three bureaus. A payment nobody reports to a bureau appears on no report.

When does Classic FICO still apply?

Fannie Mae's Lender Letter says manually underwritten loans must continue to use only Classic FICO, and the Selling Guide keeps their minimum scores at 620 for fixed-rate loans and 640 for adjustable-rate loans. Loans run through Desktop Underwriter, Fannie Mae's automated underwriting system, can use either model.

Is FICO 10T used for mortgages yet?

Not for Fannie Mae and Freddie Mac loans as of October 2026. FHFA's policy page states that FICO 10T "is not currently eligible for delivery," although it is an approved model. FHA is further along: under HUD's Mortgagee Letter 2026-11, dated October 8, 2026, FHA will accept FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027.

Will Classic FICO be retired?

Not on any announced date. FHFA's policy page says Classic FICO remains an approved model, that it is expected to be retired at a future date, and that "no retirement date has been announced." FHFA, Fannie Mae, and Freddie Mac say they will give advance notice before any change, and both models remain valid for conforming loans.

Why is my mortgage credit score different from the score in my banking app?

Because your app usually shows a different scoring model built from one bureau's file on one date, while a mortgage lender pulls a mortgage-specific model from all three bureaus on another date. The Consumer Financial Protection Bureau explains that lenders use different scores for different products and that there are many scoring formulas, so a credit card score, a home loan score, and a score bought online can all differ.

Why can two lenders see different scores for the same borrower?

Lender A may order Classic FICO and Lender B VantageScore 4.0, and even the same model pulled two weeks apart can differ as balances update. The representative score then feeds each lender's pricing grid, one reason two lenders quote different rates and why the tiers in what credit score you need for a good rate are bands, not single numbers.

Do multiple mortgage credit pulls hurt my score?

No, not beyond a single pull's effect, as long as the pulls fall inside the shopping window. The Consumer Financial Protection Bureau states that within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry. The pull can also trigger marketing calls, covered in mortgage trigger leads and your privacy, and the inquiry mechanics are in shopping for a mortgage without hurting your credit.

How does FHA pick a credit score when several models are allowed?

For FHA case numbers assigned on or after January 1, 2027, HUD's Mortgagee Letter 2026-11 lets the lender submit one or more approved model types, with the same model types for every borrower. The lender selects one score per borrower from each model using the middle of three scores, the lower of two, or the single score available, takes the lowest of those as the borrower-level score, and the Minimum Decision Credit Score (MDCS) is the lowest borrower-level score among all borrowers.

The thresholds do not move regardless of model type: an MDCS below 500 is not eligible, 500 to 579 limits the loan to a maximum 90 percent loan-to-value ratio, and 580 or above is eligible for maximum financing. What those thresholds mean in down payment terms, 3.5 percent at 580 and 10 percent from 500 to 579, is in minimum down payment by loan type.

How does your credit score work on HomeTurf?

HomeTurf is a technology marketplace, not a lender or loan originator, and it does not pull your credit. When you post a purchase, refinance, pre-approval, or Beat My Rate auction, you enter your credit score as a self-reported range, and N.M.L.S.-verified, state-licensed lenders bid on that band while you stay anonymous. Your income and assets are shown as ranges too. In a Purchase or Refinance auction, lenders see the exact price, value, and loan figures, because accurate offers depend on them. In a Beat My Rate auction, they see the rate and A.P.R. you want beaten exactly.

Each offer shows its rate, A.P.R., fees, and points exactly. HomeTurf never selects, ranks as best, or recommends a lender, and lenders cannot pay for placement. You choose, only that lender receives your contact details, and it must reach out within 36 hours.

The lender you choose then orders a tri-merge report under the model it uses, so many borrowers ask which model a lender runs before the pull. What follows is in the underwriting timeline after you choose a lender. HomeTurf does not lock rates or guarantee any rate.

Frequently asked questions

Do mortgage lenders use FICO or VantageScore?

Mortgage lenders selling loans to Fannie Mae and Freddie Mac may use either Classic FICO or VantageScore 4.0, and since September 9, 2026 every approved lender may use VantageScore 4.0 without prior written approval. The lender chooses the model for each loan and must apply it to every borrower. Manually underwritten conforming loans still use Classic FICO only, and FHA adds VantageScore 4.0 and FICO 10T for case numbers assigned on or after January 1, 2027.

Can I ask my lender to use VantageScore 4.0 instead of Classic FICO?

You can ask, but the choice belongs to the lender. Fannie Mae's Lender Letter LL-2026-06 lets a lender select either Classic FICO or VantageScore 4.0 for an eligible loan, and lenders not yet operationally ready may keep using Classic FICO. Because each lender's model choice is its own, many borrowers compare several lenders rather than negotiate the model with one.

Does paying rent or utilities on time help my mortgage credit score?

Only if the payments are reported to the credit bureaus and the lender uses a model that reads them. HUD's Mortgagee Letter 2026-11 describes VantageScore 4.0 and FICO 10T as models that use non-traditional credit such as rent and utilities, and VantageScore says its models use that information when it is reported to the three bureaus. HUD names no other model as using that data, and an unreported payment appears on no report.

What is bi-merge credit reporting and when does it start?

Bi-merge credit reporting means a lender pulls credit files from two of the three national bureaus instead of all three. The Federal Housing Finance Agency has not set a start date, and as of October 14, 2026 its credit score policy page says current credit reporting requirements are unchanged, so conforming loans still use tri-merge reports.

Did Fannie Mae remove its 620 minimum credit score?

Yes, for loans underwritten through Desktop Underwriter, Fannie Mae's automated underwriting system. Fannie Mae's Selling Guide Announcement SEL-2025-09, dated November 5, 2025, removed the 620 minimum representative score for one borrower and the 620 minimum average median score for multiple borrowers, for loan casefiles created on or after November 16, 2025. Desktop Underwriter now relies on its own risk analysis, manually underwritten loans keep the Selling Guide minimums, and many lenders still apply a 620 floor of their own, which is why most guides still quote that number.

See which lenders compete at your score band

Which model a lender uses is its decision. Whether you compare one lender or several is yours. On HomeTurf, verified lenders bid on your self-reported credit range inside one auction window of 12, 24, 36, or 48 hours, capped at 48 hours because mortgage rates change daily, and HomeTurf never pulls your credit.

When you are ready to compare, you can Start Your Auction. HomeTurf is a technology marketplace, not a lender, and it is free for borrowers.

Remember that this is general information, not financial advice, and every situation is different.

Sources

• Federal Housing Finance Agency, credit score models policy page: fhfa.gov
• Fannie Mae, Lender Letter LL-2026-06, VantageScore 4.0 Broad Lender Availability: singlefamily.fanniemae.com
• Fannie Mae, Selling Guide B3-5.1-01, General Requirements for Credit Scores: selling-guide.fanniemae.com
• Fannie Mae, Selling Guide B3-5.1-02, Determining the Credit Score for a Mortgage Loan: selling-guide.fanniemae.com
• Fannie Mae, Selling Guide Announcement SEL-2025-09: singlefamily.fanniemae.com
• U.S. Department of Housing and Urban Development, Mortgagee Letter 2026-11, Updated Minimum Decision Credit Score Methodology: hud.gov
• Consumer Financial Protection Bureau, request and review multiple Loan Estimates: consumerfinance.gov
• Consumer Financial Protection Bureau, understand your credit score: consumerfinance.gov

HomeTurf is a technology marketplace, not a lender or loan originator. This content is for general information only and is not financial or legal advice.