FHA Is Changing How It Scores Your Credit — What Buyers Need to Know

FHA is moving forward with new credit scoring models, which could open doors for more California homebuyers — but there are still some important uncertainties to watch.

If you're planning to buy a home using an FHA loan, there's an important change on the horizon that could affect how your creditworthiness is evaluated.

FHA has confirmed it will begin accepting two newer credit scoring models — VantageScore 4.0 and FICO 10T — in addition to the classic FICO scores lenders have relied on for decades. Unlike the government-sponsored enterprises that are testing changes through pilot programs, FHA plans to roll this out broadly across the board. Exact implementation dates are still to be announced.

One thing that won't change: FHA will still require a tri-merge credit report, meaning your credit is pulled from all three major bureaus.

Why does this matter to you as a buyer? Newer scoring models can weigh your credit history differently — in many cases more favorably — potentially making it easier to qualify or secure better terms. However, there is some uncertainty in the market about how loans scored with VantageScore will be priced by investors, so this is a space we're actively watching.

The bottom line: more scoring options could mean more buyers get approved. If you've had concerns about qualifying for an FHA loan, now is a great time to have a conversation with us.

Reach out today and let's take a closer look at your options.