{"id":26649,"date":"2026-02-13T21:35:23","date_gmt":"2026-02-13T21:35:23","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/new-credit-score-models-could-open-the-door-to-homebuyers-who-were-shut-out-in-the-past-heres-how-they-work\/"},"modified":"2026-02-13T21:35:23","modified_gmt":"2026-02-13T21:35:23","slug":"new-credit-score-models-could-open-the-door-to-homebuyers-who-were-shut-out-in-the-past-heres-how-they-work","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/new-credit-score-models-could-open-the-door-to-homebuyers-who-were-shut-out-in-the-past-heres-how-they-work\/","title":{"rendered":"New credit score models could open the door to homebuyers who were shut out in the past. Here’s how they work"},"content":{"rendered":"
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For decades, the magic credit score number for homebuyers was 620.<\/p>\n
That FICO score was typically seen as the minimum needed to qualify for a conventional mortgage, a line between who could move forward and who couldn\u2019t (1).<\/p>\n
As the mortgage industry heads into 2026, that rulebook is starting to change. Lenders and regulators are moving away from relying on a single credit score and toward a new type of credit score that takes a broader look at how borrowers manage their money over time.<\/p>\n
The change won\u2019t make mortgages easier to get overnight and won\u2019t guarantee approvals for riskier borrowers. But it could open the door for would-be buyers who have been paying their bills on time, paying down debt and improving their finances without seeing their traditional credit score change.<\/p>\n
Here\u2019s what\u2019s driving the change, how the new scoring models work, and what it means for homebuyers.<\/p>\n
More than half of U.S. mortgages are backed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises overseen by the Federal Housing Finance Agency (FHFA). Together, they set the rules for what are known as conforming mortgages, which are the standard home loans used by millions of buyers each year.<\/p>\n
In November 2025, Fannie Mae removed its long-standing minimum credit score requirement from its Selling Guide. Instead of linking eligibility to a single cutoff, lenders are now encouraged to assess borrowers by using a wider mix of factors, including cash reserves, debt levels, loan purpose and property characteristics.<\/p>\n
This move highlights a push across the housing industry to modernize how credit is evaluated. According to FHFA, consumers like renters and younger borrowers can show their financial responsibility in ways that wouldn\u2019t typically be captured by traditional scoring systems.<\/p>\n
With this change, mortgage lenders are beginning to test newer credit scoring models such as FICO Score 10T and VantageScore 4.0 (2). Unlike traditional scores, these models rely on \u201ctrended data,\u201d which looks at how borrowers manage credit month after month. This could include whether balances are shrinking, payments are made consistently, and if debt is moving in the right direction.<\/p>\n<\/p><\/div>\n