FHA Will Accept VantageScore 4.0 and FICO 10T Credit Scores in 2027: What It Means for Buyers
Starting with FHA case numbers assigned on or after January 1, 2027, FHA loans can use two newer credit scoring models, VantageScore 4.0 and FICO 10T, alongside the Classic FICO scores lenders use today. HUD announced the change in Mortgagee Letter 2026-11 on October 8, 2026. The minimum score requirements are not changing: 580 or higher still generally allows maximum financing with 3.5% down, and 500 to 579 still requires 10% down.
What changes is how your score can be calculated. The newer models can look at your credit behavior over time and, in some cases, rent and utility payment history. For buyers with thin credit, a short history or a recent improvement in how they manage debt, that could mean a different score than the one used today.
I'm Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. Here's what's changing, who it may help, and what to keep in mind before you count on it.
What FHA Is Changing
Today, FHA lenders use Classic FICO scores pulled from the three credit bureaus. Under the new mortgagee letter:
Three scoring models will be allowed: Classic FICO, FICO 10T and VantageScore 4.0.
A three-bureau credit report is still required. FHA is keeping the tri-merge report.
The minimum score thresholds stay the same, no matter which model is used.
The change applies to FHA purchase and refinance loans with case numbers assigned on or after January 1, 2027.
HUD says the goal is to expand access to mortgage credit and modernize how risk is measured.
Why the Newer Scores Can Be Different
Classic FICO looks mostly at a snapshot of your credit report. The newer models add two things:
Trended data. Instead of just your current balances, they can look at how your balances and payments have changed over time. Someone who pays their cards down every month may look different from someone who carries a balance, even if today's balances are similar.
Non-traditional credit. According to HUD, these models can also take into account things like rent and utility payments when that information appears in your credit file.
That doesn't mean your score will automatically go up. Some people will score higher on a newer model, some lower, and many about the same.
How FHA Will Pick Your Score
The method for choosing your "decision" score is changing to account for more than one model:
For each scoring model your lender submits, the score is chosen the usual way: the middle score if there are three, the lower score if there are two, or the only score if there's one.
If your lender submits more than one model, your score is the lowest of those selected scores.
If there's more than one borrower, the loan uses the lowest borrower score among everyone with a score.
Lenders can submit one model or more than one, but they must use the same model types for every borrower on the loan. For example, a lender can't use FICO 10T for one borrower and VantageScore 4.0 for the co-borrower.
What Stays the Same
580 and above: generally eligible for maximum FHA financing, which means 3.5% down on a purchase
500 to 579: limited to 90% loan-to-value, which means 10% down on a purchase
Below 500: not eligible for FHA
No credit score: borrowers with non-traditional or insufficient credit can still be considered through manual underwriting, with stricter debt-to-income limits
Your income, debts, down payment, assets and the property still have to qualify too. A score is only one part of the approval. See what credit score you need for a mortgage in Charlotte for how scores work across loan types.
Who This Could Help
The change may matter most for:
Buyers with a thin or short credit history, such as younger buyers or people who have mostly used cash or debit
Renters with a strong on-time rent history, if that history is reported in their credit file
Buyers who have been paying down debt, since trended data can reflect improvement over time
Buyers just below 580, where a different model could change whether they qualify for 3.5% down or need 10% down
It may not help, or may not apply, if:
Your lender doesn't offer the newer models yet
Your rent and utility payments aren't reported to the credit bureaus
Your score on the newer model is the same or lower
Will Every Lender Use the New Scores?
Not necessarily, and not right away. FHA is allowing the new models, not requiring every lender to use a particular one. Lenders, credit reporting vendors and underwriting systems all have to support them, and individual lenders can set their own requirements on top of FHA's minimums.
This is one place where working with a mortgage broker can help. I compare FHA options across multiple wholesale lenders, so as lenders begin using the new models, I can look at which ones fit your credit profile.
How This Fits With Conventional Loans
This follows a similar move on the conventional side. In July 2025, the Federal Housing Finance Agency approved VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac. With FHA now adding FICO 10T and VantageScore 4.0, more loan types are moving toward the newer scoring models, though how and when each lender uses them still varies.
What to Do Now if You're Planning an FHA Loan
Check your credit reports from all three bureaus for free at AnnualCreditReport.com and dispute any errors.
Keep paying everything on time, including rent and utilities.
Pay down card balances where you can. Lower utilization helps under every model, and trended data may reward a steady pattern.
Ask whether your rent payments can be reported. Some landlords and rent-reporting services report on-time rent to the credit bureaus.
Talk to a loan officer before you shop. If your score is near 580, it's worth knowing your options under the current rules and after January 1, 2027.
If you're buying before January 2027, today's rules still apply. Your loan officer can tell you whether waiting would make a difference for you or whether you're better off moving forward now.
How I Help FHA Buyers
I review your full credit report, not just the score, and show you where you stand for FHA and other programs. If you're close to a better tier, I'll show you what to work on and whether the timing of this change matters for you. Learn more about FHA home loans or read my FHA guide for first-time buyers in Charlotte. For the bigger picture, see how to qualify for a home loan and getting pre-approved in Charlotte.
FHA Credit Score Change FAQs
When does the FHA credit score change take effect?
It applies to FHA loans with case numbers assigned on or after January 1, 2027.
Is FHA lowering its minimum credit score?
No. The minimums stay the same: 580 for maximum financing and 500 to 579 with 10% down. What changes is which scoring models can be used.
Will VantageScore 4.0 or FICO 10T raise my score?
It depends on your credit. Some people score higher on a newer model, some lower and many about the same. Rent, utility and payment-trend data can help some borrowers, especially those with thin credit.
Can I choose which credit score my lender uses?
Not directly. The lender decides which models it submits, and it must use the same models for every borrower on the loan. Comparing lenders can matter once lenders begin offering the newer models.
Can I get an FHA loan with no credit score?
Possibly. FHA allows borrowers with non-traditional or insufficient credit to be considered through manual underwriting, with stricter debt-to-income limits.
Planning an FHA Purchase?
If you're buying in North Carolina or South Carolina and your credit is thin or close to 580, I'm glad to review your report and show you your options now and after January 1, 2027. We can talk by phone or video.
Schedule a mortgage consultation or start your mortgage application.
Paul Mattos Mortgage Broker | Refine Mortgage Carolina Home Financing NMLS# 2339069 | Licensed in NC and SC Call or text: 980-221-4959 Email: paulm@refinemortgage.net
Refine Mortgage Inc. | NMLS# 2417960 | Equal Housing Lender. Refine Mortgage is not affiliated with HUD, FHA or any government agency. This article provides general educational information based on HUD Mortgagee Letter 2026-11 and is not a commitment to lend, a rate quote, credit repair advice, or an offer of specific credit terms. Lender adoption of alternative credit score models may vary, and lenders may have requirements beyond FHA minimums. Approval, pricing, and program availability depend on credit, income, assets, property, appraisal, and underwriting requirements. Not all applicants will qualify.
