If you’ve ever felt like the traditional credit system didn’t quite tell your whole story, there’s finally some GOOD news. As of this week, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will now allow lenders to use VantageScore 4.0—a long-awaited change that could open doors for millions of Americans.

This shift isn’t just a headline—it’s a game-changer. Whether you're a future homebuyer, a real estate agent, or a fellow lender, here’s what you need to know, and how this could impact your bottom line.

What Happened? (And Why It Matters)

On July 8, 2025, FHFA Director Bill Pulte announced that lenders working with Fannie and Freddie can immediately begin using VantageScore 4.0. And yes—the tri-merge credit report (pulling data from all three bureaus) is here to stay, so lenders aren’t being asked to overhaul their systems.

VantageScore, developed by Experian, Equifax, and TransUnion, is considered more inclusive and more affordable than the traditional FICO model. With this announcement, the landscape of mortgage lending is shifting fast—and in favor of borrowers.

Why This Is a Big Win for Homebuyers

Let’s break it down in plain English.

1. Renters Can Now Get Credit for Paying Rent On Time
VantageScore 4.0 includes rental history and other "alternative" payment data like utilities. That’s huge for people who may not have traditional credit lines, but are financially responsible.

2. Millions More Could Qualify
According to VantageScore, up to 5 million more Americans could qualify for a mortgage under this model. That includes first-time buyers, rural residents, and creditworthy borrowers with thin credit files.

3. Lower Costs = Lower Barriers
FICO licensing has historically been expensive. With VantageScore as an option, lenders may save on costs, which can potentially be passed down to buyers in the form of lower fees or better terms.

4. More Competition = More Innovation
For decades, FICO held a near monopoly on credit scoring in the mortgage industry. This move injects fresh competition, encouraging better tools, fairer access, and new tech solutions.

What This Means for Realtors

More qualified buyers = more closings. Simple as that.

With VantageScore now accepted, your clients who’ve been stuck on the sidelines may finally be able to get pre-approved. This is a great time to follow up with renters, past leads, or anyone who’s been told "not yet."

Want help updating your buyer pre-approval checklist? We’ve got resources ready to go. Find a time on our calendar to learn more about becoming an agent partner.

What This Means for Fellow Lenders

If you’re in lending, this isn’t just an FYI—it’s a shift you need to be ready for. VantageScore 4.0 is tri-merge compatible, meaning implementation can begin without reworking your entire tech stack. This is your chance to:

• Expand your approval pool
• Reduce upfront costs
• Offer a more inclusive approach to creditworthiness

We're already helping our clients navigate these changes and are happy to collaborate or answer questions.

At The Sherry Riano Team, we’ve built our business around serving people—not just files. This credit scoring update is more than just a regulation—it’s a win for the everyday families we work with, the agents we support, and the community we serve.

So whether you’re a buyer, agent, or lender, this change is a conversation worth having. Let’s talk about how it could benefit you.

Ready to Learn More?

Have questions? Want to see if this helps you or your clients qualify?

Text or call us at 919-234-7415 or contact us here to get the conversation started.

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