What Is VantageScore 4.0 and Why Does It Matter for Future Homebuyers?
At Premia, we’re always looking ahead to how we can better serve future homeowners — especially those who’ve traditionally been underserved by conventional credit scoring models. One of the most anticipated changes in mortgage lending is the potential adoption of the VantageScore 4.0 model, which could redefine how creditworthiness is assessed and open the door for more borrowers to qualify for better mortgage terms.
What Is VantageScore 4.0?
VantageScore 4.0 is the latest version of the VantageScore credit scoring model — an alternative to the more widely used FICO score. What makes it different? In short:
More Inclusive Data Use: It leverages trended credit data — meaning it considers how your credit behavior changes over time, not just a snapshot.
Broader Population Coverage: It can generate credit scores for 37 million more people than traditional models, including many who don’t have a long credit history or don’t use credit in conventional ways.
Alternative Payment History: VantageScore 4.0 can include rent, utility, and telecom payments when available, helping individuals with limited traditional credit histories receive a fairer evaluation.
What’s Happening Now?
Although VantageScore 4.0 has been around since 2017, it hasn't been adopted by Fannie Mae or Freddie Mac for conventional mortgage underwriting — yet. That could be changing.
Recently, Federal Housing Finance Agency (FHFA) Director Bill Pulte has recommended that both Fannie and Freddie move toward adopting VantageScore 4.0 as part of broader efforts to expand access to homeownership. A Realtor.com article highlights that this could lead to fairer loan pricing and wider access, especially for first-time buyers and those in marginalized communities.
At the same time, Fannie Mae is already leaning into positive rent payment reporting — a step toward recognizing nontraditional credit patterns. Their website explains how this is used to help borrowers with no established credit score — such as individuals who pay cash for everything, avoid credit cards, or are just entering the credit world after school — to still be eligible for home loans. This is similar to what we already do at Premia when we build manual credit reports, using things like gym memberships, school tuition, and rent to meet underwriting requirements for “credit-invisible” borrowers.
Why It Matters
For our team at Premia, VantageScore 4.0 is exciting because it aligns with our mission to help more people become homeowners — especially those who don’t fit into the conventional credit mold. Many of our borrowers are responsible with money but lack the kind of debt history that generates a traditional credit score. VantageScore 4.0 could help change that.
Is It Live Yet?
Not quite. Although the momentum is real — and potentially faster than we've seen with past credit model updates — VantageScore 4.0 is not yet in use by Fannie Mae or Freddie Mac for mortgage decisions. We’re watching closely, and Premia is preparing to integrate it when the time comes.
Until then, we’ll continue doing what we do best: manually building credit profiles for borrowers who deserve a shot at homeownership, regardless of whether they have a conventional credit history.
Final Thoughts
Whether you're a borrower trying to understand your options or a loan officer staying ahead of the curve, keep VantageScore 4.0 on your radar. It’s not the norm yet — but it might be soon.
All information provided in this publication is for informational and educational purposes only and should not be construed as financial, investment, legal, or tax advice. Premia Mortgage, LLC does not provide tax advice; please consult your tax adviser for any tax-related questions. While efforts are made to verify the information, Premia Mortgage, LLC does not guarantee the quality, accuracy, completeness, or timeliness of the content. Information provided by third parties may not have been independently verified. The information should not be assumed to be error-free. Premia Mortgage, LLC assumes no liability for any direct, indirect, consequential, special, exemplary, or other damages arising from the use of or reliance on this publication, whether in contract, tort (including negligence), or otherwise, including any personal or financial loss. Applicants are subject to credit and underwriting approval. Not all applicants will be approved for financing. Submission of an application does not guarantee loan approval or lock in an interest rate. Restrictions may apply; contact Premia Mortgage, LLC for current rates and additional information.