You’ve probably heard rumblings about a major Fannie Mae update involving credit scores. Maybe you’re wondering if this will mess with your mortgage application, or if it might help. We get it: Credit rules are confusing, and they change faster than interest rates sometimes. But don’t worry—we’ve got you.

In this guide, you’ll find out exactly what Fannie Mae’s new credit score policy means for you, whether you're a first-time buyer, refinancing, or exploring homeownership for the first time.

Key Takeaways:

• Fannie Mae is updating how it evaluates credit scores—this could expand your mortgage eligibility.
• Multiple credit scores may now be factored in, improving fairness and transparency.
• Lenders will adopt a two-score model, no longer relying solely on the middle score.
• These updates may lead to broader access to homeownership across diverse borrower groups.

What’s Changing with Fannie Mae’s Credit Score Policy?

The Move to Two Scores

Traditionally, mortgage lenders have relied on your middle FICO score (of three) to determine eligibility. Fannie Mae’s update changes that: going forward, lenders will use two scores instead of three—a move expected to increase equity and fairness.

Inclusion of VantageScore 4.0

In addition to FICO scores, VantageScore 4.0 will become part of the evaluation. This model includes broader payment history data, including rent, utilities, and telecom bills—especially helpful if you’re "credit invisible" or thin-file.

Why It Matters to You?

Freddie Mac’s evolving approach isn’t just about lenders, it could change the game for buyers like you. Here’s how:

• Fairer evaluations: Renters and gig workers may finally see their creditworthiness recognized.
• Potential for better rates: With more inclusive data, you might qualify for more competitive mortgage terms.
• Broader access: Expands homeownership opportunities for underserved communities.

How to Prepare for the New Credit Score Model?

1. Check Your Credit Reports—All of Them

Even with only two scores being used, discrepancies matter. Get your reports from Equifax, Experian, and TransUnion, and verify every line.

Pro Tip: Visit AnnualCreditReport.com for free weekly reports.

2. Optimize New Score Inputs

• Make on-time payments for rent, utilities, and phone bills—they’re being counted now.
• Reduce credit utilization under 30%.
• Avoid opening new credit lines right before applying for a loan.

3. Choose Transparent Lending Platforms

Look for lenders and marketplaces that break down how your credit is evaluated, and who won’t blindside you with outdated criteria.

Be My Neighbor is one platform that emphasizes education and fairness.

Tools That Can Give You an Edge

Realpha: Commission-Free Homebuying

Realpha connects you with trusted properties and agents, without commission fees that eat into your budget. Ideal for buyers who want transparency and real-time data on the homebuying process.

Homebuyer Education Resources

Lenders working with the new score model often provide tools to understand how your score affects your rates. Look for score simulators and pre-approval platforms with soft pulls.

FAQs About the Fannie Mae Credit Score Update

What is the new Fannie Mae credit scoring system?

Fannie Mae is switching to a dual-score model and including VantageScore 4.0, expanding credit data beyond the middle FICO score.

Will this help me qualify for a mortgage?

It could. The inclusion of rental and utility payments often helps lower-credit borrowers qualify.

Does this mean lenders will stop using FICO?

No. FICO will still be used alongside VantageScore 4.0 in a dual-score model.

Conclusion: A Smarter Way to Homeownership Starts Here

Fannie Mae’s credit scoring update signals a move toward more inclusive, realistic lending. Whether buying your first home or fifth, understanding this shift is key to unlocking better rates and more loan options.

Explore transparent platforms like Realpha, which removes commission costs from the equation, and trusted resources like Be My Neighbor to start your mortgage journey confidently.

With the right tools and partners, you’re closer than ever to turning those “maybe one day” dreams into “home sweet home.”

Compliance Disclosures:

• NMLS ID: 1743790 (Be My Neighbor)
• This blog post is informational and does not constitute an offer to lend.
• Rates, terms, and eligibility are subject to change and vary by applicant. Always verify with an NMLS-licensed mortgage advisor.
• Realpha and Be My Neighbor maintain an affiliate relationship.
• Fannie Mae is a registered trademark and is not affiliated with the content of this article.