Mortgage Credit Score Change Saved Borrowers $1,600
New credit scoring models now in use may lower closing costs for qualifying home loan applicants across the U.S.
Updated on Oct. 6, 2026 in Residential
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United Wholesale Mortgage has begun using both Classic FICO and VantageScore 4.0 to evaluate loan applications, automatically selecting the higher score for the borrower. This shift follows federal efforts to increase competition among credit scoring providers to potentially reduce total borrowing costs.
Why it matters
The transition aims to improve credit access and lower costs by modernizing how lenders assess risk. By using the higher of two scores, some households may qualify for better pricing terms or avoid higher fees during the homebuying process.
Borrowers in a recent test saw average closing cost savings of $1,600 when using VantageScore, drawn from a sample of 1.4 million credit reports. The Federal Housing Finance Agency has standardized pricing for both models to ensure consistency for lenders.
The players
United Wholesale Mortgage
A major mortgage lender that provides wholesale residential home loans to borrowers through mortgage brokers.
Federal Housing Finance Agency
The federal regulator that oversees mortgage market standards and government-sponsored enterprises.
Rocket Mortgage
A prominent national mortgage lender that originates home loans and manages servicing for residential properties.
The details
Lenders now compare results from FICO and VantageScore 4.0 behind the scenes to identify the most favorable qualifying score for a mortgage applicant. The Federal Housing Finance Agency has mandated a single pricing matrix for loan-level adjustments to ensure that using different scoring models does not create unintended price gaps. This process is designed to broaden the pool of eligible borrowers while maintaining risk management standards.
Timeline
September 2026: The Federal Housing Finance Agency authorized the use of Classic FICO or VantageScore 4.0.
Q4 2026: Rocket Mortgage will adopt VantageScore 4.0 as its default credit model.
Money Landscape
This move represents a departure from the long-standing reliance on a single FICO reporting standard in the mortgage industry. It follows the federal government's broader effort to transition the housing market toward more competitive, multi-model credit reporting standards.
If you are preparing to apply for a mortgage, ask your loan officer whether they compare multiple credit models to determine your eligibility. Reviewing your credit profile across different bureaus may help you understand which score a lender is using to set your loan terms.
The takeaway
Lenders are increasingly using multiple credit scoring models to determine eligibility and pricing for homebuyers. When applying for a loan, speak with a qualified financial professional about how different credit reporting models may influence your specific mortgage application and interest rate.
Further reading
Learn more about home loan requirements in our Residential section.
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Do you believe using multiple credit scoring models helps make mortgages more affordable for you?
