Earlier this year I had a VA buyer in Bluffton with a 606 FICO score. Same person, same credit report, same day, and their VantageScore 4.0 came back at 662. That 56-point gap was worth three quarters of a percent on their rate.
At 606, the best rate available was 7.25%. Priced on the 662, they locked at 6.5%. On their loan, that's $226 a month, every month, for as long as they keep it.
Most buyers have no idea they have more than one credit score that a lender can use. As of this fall, that matters more than ever. Here's what changed, what it meant for my client, and how to find out if it could help you.
What Changed in 2026
For decades, nearly every mortgage was priced off one score: Classic FICO, a model built in the early 2000s. That's no longer the case.
- September 4, 2026: FHFA directed Fannie Mae and Freddie Mac to accept VantageScore 4.0 from every lender, effective immediately (VantageScore).
- October 1, 2026: Fannie and Freddie began pricing loans on one grid, whether the lender uses Classic FICO or VantageScore 4.0 (Fannie Mae). The 20-point haircut that used to be applied to VantageScore is gone (HousingWire).
- January 1, 2027: FHA starts accepting VantageScore 4.0 (Business Wire).
In plain English: for a conventional loan, a 662 is now a 662, no matter which company calculated it. If your VantageScore is higher than your FICO, a lender can price your loan on the higher number.
This isn't a small group of people. Rocket Mortgage tested 1.4 million credit reports and found borrowers who did better with VantageScore saved an average of $1,600 at closing. UWM says about a quarter of its borrowers get a better result with VantageScore (HousingWire).
FHFA is also looking at cutting the three-bureau credit report down to two, or even one. Nothing is final there yet, but it's the same direction: more competition and lower costs on the credit side of your loan (National Mortgage News).
Case Study: A Bluffton VA Buyer
My client was a veteran buying a home in Bluffton in the mid-$500s with a VA loan. They put 20% down, for a loan of about $450,000 on a 30-year fixed.
When I pulled credit, the two scores came back 56 points apart:
The reason for the gap: my client had collections on their credit report. Classic FICO weighed them heavily. VantageScore 4.0 treats collections differently, and it scored them 56 points higher.
A 606 is a tough spot. Plenty of lenders won't do a VA loan below 620 at all, and the ones that will charge for it. The best I could find at 606 was 7.25%. Because the lender I placed the loan with accepted VantageScore 4.0 on VA loans, I priced it on the 662 instead. We locked at 6.5% and closed a few weeks later.
Here's what that difference is worth on their actual loan:
| Priced on 606 FICO | Priced on 662 VantageScore | Difference | |
|---|---|---|---|
| Interest rate | 7.25% | 6.5% | 0.75% lower |
| Monthly principal and interest | $3,083 | $2,857 | $226 less |
| Per year | $37,001 | $34,283 | $2,718 less |
| First 5 years | $185,006 | $171,417 | $13,589 less |
| Over the full 30 years | $1,110,038 | $1,028,502 | $81,536 less |
Principal and interest only, for one specific client's loan. These are not current rates or a quote. See the full disclosure at the end of this article.
Nothing else about this borrower changed. Same income, same down payment, same house, same credit history. The only thing that changed was which scoring model looked at it.
One more detail from the file: the seller paid most of the closing costs, so my client's own closing costs were under $4,000.
Why Two Scores Can Be So Far Apart
Both scores read the same credit report. They just weigh it differently. A few of the bigger differences:
- Collections. VantageScore 4.0 treats collection accounts differently than Classic FICO, the older model most lenders have used. If you have collections on your report, the two scores can land far apart.
- Trends, not snapshots. VantageScore 4.0 uses trended data, meaning it looks at whether your balances have been going down over the past couple of years. Classic FICO mostly sees where your balances stand on the day the report is pulled.
- Thin files. VantageScore can score people with a short or inactive credit history that Classic FICO can't score at all. It can also count rent and utility payments when they're reported to the bureaus.
The people most likely to see a higher VantageScore:
- Anyone with collections on their credit report
- Buyers who've been paying down credit cards
- First-time buyers and younger borrowers with a short credit history
- People who don't use credit much but pay rent on time
It doesn't always go your way. Some borrowers score higher on FICO. The point is that you now have two shots instead of one, and your loan should be priced on whichever helps you.
Which Loans Can Use VantageScore 4.0
The rules depend on the loan type. Here's where things stand as of October 2026:
| Loan Type | Can VantageScore 4.0 Be Used? | Who Decides |
|---|---|---|
| Conventional (Fannie Mae and Freddie Mac) | Yes, by any lender, and priced on the same grid as FICO since October 1, 2026 | FHFA |
| VA | Yes, at lenders that have adopted it. Not every lender has. | The lender and the investor that buys the loan |
| FHA | Starting January 1, 2027 | HUD/FHA |
| Jumbo and non-QM | Varies lender by lender | Each lender |
My client's loan was VA, and it closed before the conventional pricing change even took effect. That's the part most people miss. VantageScore only helps you if the lender you're working with actually accepts it for your loan type, and actually runs both scores.
A lender that only pulls Classic FICO will never tell you that your other score is 56 points higher. They don't know either.
Questions to Ask Your Lender
Before you lock a rate, ask:
- Do you pull both Classic FICO and VantageScore 4.0?
- Which one is my loan priced on, and what are both of my scores?
- Do you accept VantageScore 4.0 for my loan type (conventional, VA, or FHA)?
- If my VantageScore is higher, what would my rate be on that score?
If the answer to the first question is no, you're leaving a possible discount on the table.
This is one of the clearest advantages of working with a broker. A bank or retail lender has one set of rules. As a broker, I can place your loan with the lender whose rules fit your file, including which credit score they'll use. For my VA client, that one decision was worth $226 a month.
Both Scores, Every Time
Here's how it works on my end: every credit report I run includes both your Classic FICO and your VantageScore 4.0, for the same price. There's no extra fee and no second pull. I choose the higher score, and the pricing updates automatically.
Thinking about buying in Bluffton, Hilton Head, Beaufort, or Savannah? I'll pull both scores and show you what each one gets you before you commit to anything. Call or text me at (404) 398-9991, or start your application.
Frequently Asked Questions
Is the score on my credit card app or Credit Karma the one lenders use?
Usually not. Many free apps show VantageScore 3.0 or a consumer version of FICO. Mortgage lenders use Classic FICO and VantageScore 4.0, which can come out differently. The only way to know your mortgage scores is to have a lender pull them.
Can I choose which score my lender uses?
You can't order the lender to use one, but you can choose a lender that pulls both and prices on the better one. That's the real choice.
Does checking both scores mean two credit pulls?
No. Every credit report I run includes both Classic FICO and VantageScore 4.0, at the same price as a single score. One pull, both numbers.
If two of us are on the loan, can we each use our best score?
No. Fannie and Freddie require the same scoring model for every borrower on the loan. If one borrower does much better on VantageScore and the other does better on FICO, it's worth running the numbers both ways.
Does VantageScore help with FHA loans?
Not yet. FHA starts accepting VantageScore 4.0 on January 1, 2027.
Will VantageScore always be higher than my FICO?
No. For some people it's lower. That's why you want a lender who checks both, not one who switches to whichever they happen to use.
This article is general information, not a commitment to lend. Rates, credit score requirements, and VantageScore acceptance vary by lender, loan type, and market conditions. The case study describes one specific client's loan. Their rate reflected their full credit profile, loan amount, down payment, property, and market conditions on the day they locked, and is not a current rate or an offer. Payment figures are principal and interest only and do not include taxes, insurance, or HOA dues. Your rate, payment, and results will differ, and not all applicants will qualify. Brad Payne NMLS #2366717. Empire Home Loans NMLS #1839243. Equal Housing Lender.