What Homebuyers Need to Know About Fannie Mae's Credit Score Update? | reAlpha Mortgage

You’ve probably heard rumblings about a major Fannie Mae update involving credit scores. Maybe you’re wondering if this will mess with your mortgage application, or if it might help. We get it: Credit rules are confusing, and they change faster than interest rates sometimes. But don’t worry-we’ve got you.

In this guide, you’ll find out exactly what Fannie Mae’s new credit score policy means for you, whether you're a first-time buyer, refinancing, or exploring homeownership for the first time.

• Fannie Mae is updating how it evaluates credit scores-this could expand your mortgage eligibility.
• Multiple credit scores may now be factored in, improving fairness and transparency.
• Lenders will adopt a two-score model, no longer relying solely on the middle score.
• These updates may lead to broader access to homeownership across diverse borrower groups.

Traditionally, mortgage lenders have relied on your middle FICO score (of three) to determine eligibility. Fannie Mae’s update changes that: going forward, lenders will use two scores instead of three-a move expected to increase equity and fairness.

In addition to FICO scores, VantageScore 4.0 will become part of the evaluation. This model includes broader payment history data, including rent, utilities, and telecom bills-especially helpful if you’re "credit invisible" or thin-file.

Freddie Mac’s evolving approach isn’t just about lenders, it could change the game for buyers like you. Here’s how:

• Fairer evaluations: Renters and gig workers may finally see their creditworthiness recognized.
• Potential for better rates: With more inclusive data, you might qualify for more competitive mortgage terms.
• Broader access: Expands homeownership opportunities for underserved communities.

Even with only two scores being used, discrepancies matter. Get your reports from Equifax, Experian, and TransUnion, and verify every line.

Pro Tip: Visit AnnualCreditReport.com for free weekly reports.

• Make on-time payments for rent, utilities, and phone bills-they’re being counted now.
• Reduce credit utilization under 30%.
• Avoid opening new credit lines right before applying for a loan.

Look for lenders and marketplaces that break down how your credit is evaluated, and who won’t blindside you with outdated criteria.

reAlpha Mortgage is a trusted home financing platform that emphasizes transparency, borrower empowerment, and real savings through its commission rebate program.

reAlpha connects you with top agents and lending solutions - and gives you up to 75% of the buyer agent commission back to offset closing costs and unlock serious savings.

Lenders working with the new score model often provide tools to understand how your score affects your rates. Look for score simulators and pre-approval platforms with soft pulls.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

Check if you qualify

Fannie Mae is switching to a dual-score model and including VantageScore 4.0, expanding credit data beyond the middle FICO score.

It could. The inclusion of rental and utility payments often helps lower-credit borrowers qualify.

No. FICO will still be used alongside VantageScore 4.0 in a dual-score model.

Fannie Mae’s new credit score model is leveling the playing field - and with reAlpha Mortgage, you can make the most of it.

When you buy with reAlpha, you can save thousands at closing through our exclusive rebate stack:

💰 25% commission rebate when you work with a reAlpha agent

💰 50% rebate when you bundle your mortgage through reAlpha Mortgage

💰 Up to 75% total when you also use reAlpha Title

That’s real money back in your pocket - for inspections, upgrades, or just a stronger financial start.

Explore how much you could save at reAlpha Mortgage - and turn today’s opportunity into tomorrow’s keys.

• NMLS ID: 1743790 (reAlpha Mortgage)
• This blog post is for informational purposes only and does not constitute an offer to lend.
• Rates, terms, and eligibility may vary and are subject to change. Please consult with an NMLS-licensed mortgage advisor.
• reAlpha and reAlpha Mortgage are affiliate entities.
• Fannie Mae is a registered trademark and is not affiliated with this content.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

Check if you qualify