"I pay my rent on time every single month. Why doesn't that count?" We've heard some version of that question for more than 20 years on Long Island, and until now the honest answer was: because the credit score lenders use doesn't look at it. For decades, almost every conventional mortgage was judged by an older family of FICO models lenders call "Classic FICO." That just changed. As of September 2026, every lender selling loans to Fannie Mae and Freddie Mac can use VantageScore 4.0 instead, and FICO 10T is next in line. Let's walk through what the new models actually look at, who they help, and what you should do before you apply.
What Actually Changed, and When
This didn't happen overnight. It's the payoff of a multi-year effort by the Federal Housing Finance Agency (FHFA), the regulator over Fannie Mae and Freddie Mac, to bring competition into mortgage credit scoring. The key dates:
FHFA and HUD announced that Fannie Mae, Freddie Mac, and FHA would accept VantageScore 4.0 and FICO 10T. Fannie and Freddie added both to their guides and opened VantageScore 4.0 to a limited group of approved lenders.
Fannie and Freddie released historical FICO 10T scores on loans going back to 2013, so lenders and investors can study how the model performs before it goes live.
Following a September 3 directive from FHFA, Fannie Mae (Lender Letter LL-2026-06) and Freddie Mac (Bulletin 2026-H) made VantageScore 4.0 available to all approved lenders, effective immediately, with no prior approval needed.
FICO 10T is approved but not yet eligible for loan delivery. FHFA says the agencies will give advance notice before it launches, and before Classic FICO is ever phased out.
Classic FICO vs. VantageScore 4.0 vs. FICO 10T: What Each One Counts
The big difference between the old and new models comes down to what information they're allowed to look at. Tap each model below to see how it treats the parts of your credit history that matter most.
A simplified guide based on how each model is publicly described. Your actual score depends on everything in your full credit file.
| What it considers | Classic FICO | VantageScore 4.0 | FICO 10T |
|---|---|---|---|
| On-time payments on cards & loans | Counts | Counts | Counts |
| Rent payments reported to the bureaus | Not used | Counts | Counts |
| Balance trends over 24 months | Snapshot only | Counts | Counts |
| Paid-off collections | Still hurt | Ignored | Ignored |
| Medical collections | Still hurt | Ignored | Weighed less |
| Very short credit history | Often no score | Can score | Standard minimums |
Why Rent Only Helps If It Actually Shows Up
The headline benefit of the new models is that paying rent on time can finally count toward the score a mortgage lender sees. FHFA Director Bill Pulte put the logic plainly when the models were approved: "If you pay on time, you're more likely to pay your mortgage on time for decades."
But here's the catch most articles skip: the model can only credit rent that is reported to the credit bureaus. Most landlords don't report on their own. If yours doesn't, your perfect rent history is invisible to VantageScore 4.0 no matter how long you've been paying.
Check before you assume. Pull your free reports at AnnualCreditReport.com and look for a rental tradeline. If it's not there, ask your landlord or property manager whether they use a rent-reporting service. Many large apartment companies do, and some will add it on request. Give it a few months to build up before you apply.
Tri-Merge Still Applies: Three Bureaus, One Model Per Loan
Some things haven't changed at all, and they still matter for how your file gets scored:
- Lenders still pull all three bureaus. The "tri-merge" report from Equifax, Experian, and TransUnion is still required on conventional loans. FHFA has studied moving to two bureaus, but that's on hold, so an error on any one report can still cost you.
- One model per loan, for everyone on it. A lender can choose Classic FICO or VantageScore 4.0 loan by loan, but can't mix them. If you're buying with a spouse or co-borrower, both of you get scored on the same model.
- Manually underwritten loans stay on Classic FICO. VantageScore 4.0 is available when the loan runs through Fannie Mae's or Freddie Mac's automated underwriting systems.
Who Stands to Benefit Most
We want to be straight with you: the new models aren't a free score bump for everyone. For some borrowers the number comes out about the same, or even a little lower. They're most likely to help these groups:
Years of on-time rent, as long as it's being reported, is now a positive on your record instead of being ignored.
VantageScore 4.0 can generate a score from a much shorter history than Classic FICO, which often returns no score at all for thin files.
Both new models ignore collections you've already paid off. Classic FICO still counts them against you.
Trended data shows whether you pay balances down over time or let them grow, which rewards steady habits instead of just one statement date.
Could the New Models Work in Your Favor?
Tap any statement that describes you.
We'll show you which parts of the new scoring models are most relevant to your situation.
Want to know which score model gives you the best shot?
What About FHA Loans?
HUD announced alongside FHFA in April that FHA would also permit VantageScore 4.0 and FICO 10T for FHA-insured mortgages. How quickly an individual lender actually offers the new models on FHA files varies, so it's worth asking directly rather than assuming. Because Coltrain works with a range of wholesale lenders instead of one bank, we can see which lenders are scoring which way, and that's one of the practical advantages of working with a broker instead of a bank during a transition like this.
What to Do Right Now If You're Planning to Buy
Get them free at AnnualCreditReport.com and dispute anything that's wrong. Lenders still see all three, so one bad report can drag the whole file.
If your on-time rent isn't showing up as a tradeline, ask your landlord about a reporting service now. It takes a few months to matter.
Trended data looks at the direction of your balances, not just one statement. A few months of steady pay-down before you apply helps under the new models.
New credit and closed accounts can shift your score and your debt-to-income ratio mid-process. Get the paperwork list together instead.
Lenders now choose, loan by loan. A loan officer who can compare lenders can tell you whether Classic FICO or VantageScore 4.0 works better for your file on a conventional loan.
Will My Score Go Up?
Maybe, but we wouldn't count on a big jump. The new models are built to be more accurate, not more generous. If you have strong, long credit history, your VantageScore 4.0 may land close to your Classic FICO. The borrowers most likely to see a meaningful difference are the ones described above: renters with reported history, people new to credit, and people with old paid collections. The only way to know for your file is to have a loan officer run it, which is also the right time to find out where you'd be comfortable on price and get pre-qualified.
Can mortgage lenders use VantageScore 4.0 now?+
Yes. Since September 9, 2026, every lender approved to sell loans to Fannie Mae or Freddie Mac can use VantageScore 4.0 on conventional loans without special approval. Lenders can still choose Classic FICO instead, loan by loan.
Is FICO 10T being used for mortgages yet?+
Not yet. FICO 10T is approved, and historical FICO 10T data was published in July 2026, but it isn't eligible for loan delivery to Fannie Mae or Freddie Mac yet. The agencies have said they'll give advance notice before it launches.
Does paying rent on time help my mortgage credit score?+
It can under VantageScore 4.0 and FICO 10T, but only if your rent payments are actually reported to the credit bureaus. Classic FICO doesn't use rent data. Check your credit reports for a rental tradeline, and ask your landlord about a reporting service if it's missing.
Do lenders still pull all three credit bureaus?+
Yes. The tri-merge report from Equifax, Experian, and TransUnion is still required for conventional loans. FHFA has studied a two-bureau option, but it hasn't been put in place.
Can I choose which credit score my lender uses?+
The lender makes the call, and it has to use the same model for every borrower on the loan. But you can absolutely ask, and a broker who works with multiple lenders can help steer your file toward a lender and model that fit your credit.
- Federal Housing Finance Agency, "Credit Scores" policy page
- Federal Housing Finance Agency, "Homebuying Advances into New Era of Credit Score Competition"
- Fannie Mae, Credit Score Models and Reports Initiative
- Informative Research, "Fannie Mae and Freddie Mac Open VantageScore 4.0 to All Lenders" (LL-2026-06, Bulletin 2026-H)
- ABA Banking Journal, "HUD, FHFA roll out plans for new credit scoring in mortgages"
- MortgagePoint, "FHA, Fannie & Freddie to Begin Accepting New Credit Score Models"
- AnnualCreditReport.com, free credit reports from all three bureaus
