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Home-buying laws & updates

FHA Credit Score Changes for 2027: VantageScore 4.0 and FICO 10T Explained

Starting Jan 1, 2027, FHA lenders can use two newer credit score models. Here is what changes, what stays the same, and how FHA picks the score that counts.

Every item cites an official source (FHFA, Fannie Mae, Freddie Mac, HUD or VA) and the date we checked it. Last checked Nov 9, 2026.

General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.

Official, starts Jan 1, 2027 What HUD announced (Mortgagee Letter 2026-11, Oct 8, 2026)

FHA is adding VantageScore 4.0 and FICO 10T as accepted credit score models, alongside the Classic FICO score lenders use today. The change applies to FHA loans whose case number is assigned on or after January 1, 2027. HUD says the newer models look at how your credit behaves over time ("trended data") and can use non-traditional credit such as rent and utilities.

Jargon buster: FHA case number. The ID number your lender gets from FHA when it starts your FHA loan file. Its date, not your closing date, decides which rules apply.
Jargon buster: Credit score model. The formula used to turn your credit report into a score. Classic FICO, FICO 10T and VantageScore 4.0 are different formulas, so the same report can give different numbers.

Source: HUD Mortgagee Letter 2026-11, Oct 8, 2026 · FHA INFO 2026-24, Oct 8, 2026 · Checked Nov 9, 2026

Official, starts Jan 1, 2027 What does not change

  • Minimum scores stay the same no matter which model is used: 580 or higher for maximum financing (3.5% down for most buyers), 500 to 579 limited to 90% LTV (10% down), and below 500 not eligible.
  • FHA still requires a three-bureau ("tri-merge") credit report.
  • Nothing changes for FHA loans with case numbers assigned before Jan 1, 2027.

Lenders can still set higher minimums of their own ("overlays").

Source: HUD Mortgagee Letter 2026-11, Oct 8, 2026 · Checked Nov 9, 2026

Official, starts Jan 1, 2027 How FHA picks the score that counts

The lender can send in scores from one model or more than one, but it must use the same model(s) for every borrower. For example, it cannot use FICO 10T for you and VantageScore 4.0 for your co-borrower.

  1. For each model, take the middle score if there are three, the lower score if there are two, or the only score if there is one.
  2. Your "borrower-level" score is the lowest of those picks across the models sent in.
  3. The loan's "minimum decision credit score" is the lowest borrower-level score among all borrowers who have scores.
Worked example: Two buyers, two score models
  • Buyer A, Classic FICO: 640, 655, 662. Middle score = 655.
  • Buyer A, VantageScore 4.0: 668, 671, 690. Middle score = 671.
  • Buyer A counts as 655 (the lower of 655 and 671).
  • Buyer B, Classic FICO: 590, 602, 611 = 602. VantageScore 4.0: 600, 615, 620 = 615. Buyer B counts as 602.
  • The loan uses 602, the lower of the two buyers. 602 is 580 or higher, so it qualifies for maximum financing under FHA's score rule.

Example numbers are for learning only. Your lender's figures will differ.

Beginner tip: sending in a second score model can't raise the score FHA uses, because the lowest pick counts. Ask your loan officer which model(s) they plan to use.

Source: HUD Mortgagee Letter 2026-11, Oct 8, 2026 · Checked Nov 9, 2026

FHA vs. Fannie Mae and Freddie Mac

The rules are not the same across loan types:

  • Fannie Mae and Freddie Mac (conventional loans): lenders can already choose Classic FICO or VantageScore 4.0 for a loan. FICO 10T is not accepted for their loans yet. See credit score & DTI rules.
  • FHA: Classic FICO today. Classic FICO, VantageScore 4.0 and FICO 10T for case numbers from Jan 1, 2027.

Source: FHFA Credit Scores page · HUD Mortgagee Letter 2026-11, Oct 8, 2026 · Checked Nov 9, 2026

What this may mean for landlords and first-time buyers

These points are our plain-English reading, not official guidance:

  • House hacking with FHA: if you plan to buy a 2-4 unit home with FHA and live in one unit, ask your lender in late 2026 which score models it will use after Jan 1, 2027, and when your case number will be assigned.
  • Tenants who want to buy: HUD says the new models can use rent and utility history. That only helps if the payments appear on the renter's credit report, and many rentals don't report rent. Don't promise a tenant a score boost.
  • No change to your lease or tenant screening rules. This is about FHA mortgage underwriting only. See our landlord laws by state for rental rules.

FHA 2026 loan limits and MIP →

Source: HUD Mortgagee Letter 2026-11, Oct 8, 2026 · Checked Nov 9, 2026

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General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.