Renters and first-time buyers… this could be your window to homeownership
We just got a bit of good news in the mortgage world, and if you’ve been dreaming of buying a home, it might just be your moment.
Fannie Mae and Freddie Mac just announced they’ll now accept VantageScore 4.0. That might sound technical, but here’s what it really means: qualifying for a mortgage may be easier than it used to be.
So, what’s changing?
Traditionally, most lenders only used FICO scores based on data from all three major credit bureaus (called a tri-merge). But now, they can also use VantageScore 4.0… and the difference is big.
This newer score can include things like your on-time rent payments—which is a game-changer if you’re renting and don’t have a long credit history.
VantageScore estimates that 33 million more Americans may now see a credit score pop up on their reports. That means more folks with thin credit files finally have a real shot at buying a home.
Why now?
According to the folks at the FHFA, this change is about fairness, competition, and making homeownership more affordable.
With credit report costs rising and some borrowers being left out of the process, there’s been a push to find better ways to measure credit. This new model could be the boost some families have been waiting for.
What’s not changing?
We’re still using data from all three credit bureaus for now, so if you’re working on your credit, don’t stop! But you may start seeing more options as lenders adopt this change.
What this means for you
If you’ve been told no before… or haven’t even tried because you thought your credit wasn’t strong enough… this could be the nudge to take another look.
With on-time rent and utility payments now part of the picture, qualifying might be more doable than you think.
At Art Wood Mortgage, we’re ready to walk you through it. No matter where you’re starting, we’ll help you figure out your options and put a plan together.
Homeownership might be closer than you realize.
Let’s find out together.
Want to explore your options? Start here: https://artwoodmortgage.com/purchase
