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Credit scores

Last updated: October 26, 2026

CURRENT RULE

Conventional: VantageScore 4.0 is open to all approved Fannie/Freddie lenders (LL-2026-06). Since Oct 1, 2026, Fannie and Freddie price VantageScore on the same LLPA chart as FICO (the old 20-point haircut is gone). One score model per loan, same model for all borrowers. Manual underwrites stay Classic FICO only. FHA: adds VantageScore 4.0 and FICO Score 10T for case numbers assigned on/after Jan 1, 2027 (FHA INFO 2026-21). Under the MDCS methodology (FHA ML 2026-11 / INFO 2026-24), the LOWEST score controls — LOs cannot pick the best score. Until then, Handbook 4000.1 Classic FICO rules apply. Freddie LPA October 2026 changes live Oct 25: new per-borrower credit score messages FCL0452/FCL0453 replace the old ones and repeat for each borrower and score model; VantageScore 4.0 must receive an Accept (not eligible on manually underwritten loans); mixing score models across borrowers is a hard stop; condo Project Not Eligible messages now give the reason. Nov 21: the LPA feedback certificate Credit Report Details will show all credit models submitted. Lender status: AD Mortgage is rolling out VantageScore 4.0 shortly (no formal go-live; confirm with the AD desk before pricing on a VantageScore pull); Kind Lending confirmed Oct 23 it does NOT accept VantageScore.

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There are now two credit scores lenders can use, priced the same. We’ll check both and use the one that gets you the better deal.

DON’T MESS UP

  • One model for everyone on the loan. Never mix FICO and VantageScore on the same file.
  • Don’t order or quote alternative scores on FHA cases before the Jan 1, 2027 case-number date.
  • Confirm the wholesale lender accepts VantageScore before promising it. UWM dropped the 20-point adjuster for new locks Sep 30; Pennymac Oct 1.

OFFICIAL SOURCES

Fannie LL-2026-06 (reissued Sep 30)
FHA INFO 2026-21 (HUD)
FHFA credit scores page

WATCH

FHFA “bi-merge”: Bloomberg reports FHFA may direct the GSEs to require credit data from two bureaus instead of three. Not official. Don’t change credit-pull workflows.

CHANGE HISTORY

  • Oct 5, 2026: VantageScore 4.0 priced on the same LLPA chart as FICO since Oct 1 (Fannie LL-2026-06 reissued Sep 30); pull both scores and price both, use whichever wins.
  • Oct 12, 2026: FHA MDCS methodology — the LOWEST score controls for case numbers on/after Jan 1, 2027 (FHA ML 2026-11 / INFO 2026-24).
  • Oct 26, 2026: Freddie LPA October 2026 changes live Oct 25 (per-borrower score messages FCL0452/FCL0453; VantageScore 4.0 must get Accept; no mixing score models across borrowers). AD Mortgage rolling out VS4 shortly (confirm with the desk first); Kind Lending does NOT accept VantageScore.

Part of the GTG LO Library. Confirm the current rule with your lender before quoting.