The Trump administration is moving forward with a major mortgage qualification change that officials say could help tens of millions of Americans buy homes.
Fannie Mae and Freddie Mac said Wednesday that they will begin allowing some loans to be evaluated using VantageScore 4.0. The newer credit scoring model can include rent and utility payment history, giving borrowers another way to show they are financially reliable.
The change will begin on a limited basis with approved lenders. It is part of a broader credit score modernization effort led by the Federal Housing Finance Agency.
FHFA Director William Pulte said the move breaks years of gridlock and gives more Americans a fair shot at homeownership.
“It is only thanks to President Trump’s landslide victory and leadership that we finally broke the gridlock to do this — what’s right for the American people over Washington’s special interest,” Pulte said at a press conference Wednesday.
“Fannie and Freddie, as I said, are ready to immediately start working with approved lenders to accept VantageScore loans,” he added.
Pulte said Freddie Mac has already begun testing the model. The company has taken delivery of about $10 million in loans evaluated using VantageScore, which are expected to be securitized.
The key change is that more everyday payment history could count toward a borrower’s credit profile.
“If you paid your rent for 10 years, that should be factored into your credit score,” Pulte said. “So, I think it will save lots of money. And this truly is the golden age of home buying.”
Pulte estimated that the change could affect “tens of millions” of Americans.
During the limited rollout, approved lenders may choose between VantageScore 4.0 and traditional FICO scores. Another updated model, FICO Score 10T, is also expected to be introduced as part of the modernization effort.
FICO 10T can also factor in positive and negative rental payment history when that information is reported to credit bureaus.
Fannie Mae said the goal is to expand access while still protecting the housing finance system.
“By incorporating newer models with more predictive power, we can support sustainable access to homeownership and keep safety, soundness and operational readiness at the center,” said Jake Williamson, executive vice president and head of single-family at Fannie Mae.
The credit scoring update has been years in the making. Federal regulators approved both VantageScore 4.0 and FICO 10T in 2022 after extensive testing, according to Freddie Mac.
Pulte also previewed the shift last year, writing on X that “credit history will no longer just include credit cards and loans.”
For renters, the change could be significant. Many Americans make steady rent and utility payments for years but have limited traditional credit history. Under the new system, that record may help them qualify for a mortgage.
The rollout will begin with a limited group of lenders before any broader expansion.