For years, the credit score behind a conforming mortgage wasn't a choice. Now it is.
Fannie Mae and Freddie Mac now allow lenders to use VantageScore 4.0 when originating and selling mortgages alongside Classic FICO. This gives mortgage providers more choice in how they assess risk, evaluate applicants, and balance broader access to credit against sound underwriting.
And lenders are using that choice. In August 2026, about $4 billion of Fannie and Freddie mortgages were originated using VantageScore 4.0 — up from $8 million in April.
Why does this matter? Different credit score models can evaluate credit histories differently. This potentially changes how lenders assess borrowers.
Large Lenders Are Already Putting Both Scores to Work
Scotsman Guide recently shared that some large lenders are already scaling their VantageScore 4.0 deployments. For example, United Wholesale Mortgage (UWM) pulls both scores on every credit report and uses the better one for each borrower. "No one should have to worry about which credit model wins. We handle that automatically by obtaining FICO and Vantage on all credit pulls," said Mat Ishbia, UWM's president and CEO.
At the same time, Rocket Mortgage ran 1.4 million credit reports that pulled both scores from May through September. On Rocket-originated loans, VantageScore 4.0 averaged 11 to 12 points higher than Classic FICO. Rocket Mortgage has since made VantageScore 4.0 its preferred model for loans eligible for delivery to Fannie and Freddie. Rocket Mortgage also reported that VantageScore 4.0 opens access to some clients who wouldn’t be served otherwise, and many are able to secure a mortgage on better pricing terms. In fact, for those who saved money with VantageScore 4.0, the savings was an average of $1,600 at closing.
When the scoring model can change the result, lenders need to decide which model to use before they set expectations for the borrower.
Make the Score Decision at the Start of the Mortgage Process
Seeing both Classic FICO and VantageScore 4.0 at prequalification gives lenders an earlier view of how different models assess the same borrower. That can help them determine which eligible scoring model to use for the loan and set more realistic expectations about qualification and pricing before the borrower moves further into the process.
Lenders can use both scores at prequalification to:
Align early offers with the intended scoring model. Understand how the borrower looks under each model before setting expectations for qualification and pricing.
Identify potential qualification hurdles earlier. Give borrowers a clearer picture of their options before they invest more time in the application.
Make more informed credit-reporting decisions. Evaluate when additional reports are necessary and where repeat pulls or other avoidable expenses may be reduced.
The goal is to make the scoring decision earlier, so lenders can set expectations with greater confidence and manage the origination process more deliberately.
What’s Next
The addition of VantageScore 4.0 gives lenders more flexibility, but it doesn't eliminate the need to understand how scoring models affect borrowers and loan economics. During the initial pilot period, analysis by Milliman found that borrowers in similar score ranges paid up to 0.2 percentage points more when their loans used VantageScore.
Fannie Mae and Freddie Mac later aligned their upfront fees across the two models, underscoring how quickly the economics of this transition can change. Lenders will need to watch how pricing evolves as adoption expands.
The next shift is also already on the horizon. The Federal Housing Finance Agency (FHFA) plans to make FICO 10T available for eligible mortgage loans, adding another model that lenders will need to consider.
Lenders that can work with either score at the top of the funnel won't need to rebuild their process each time policy shifts.
We're talking with mortgage and HELOC lenders about how they're deciding between Classic FICO and VantageScore 4.0, and where in the funnel they're making that call. If you're working through it, we'd like to compare notes. Talk to our team.
Brian Welsh
Principal Product Manager
