Buying A Home? A New Credit Score Could Lower Your Rate

The Federal Housing Finance Agency now allows all approved Fannie Mae and Freddie Mac lenders to use VantageScore 4.0 or Classic FICO for mortgage evaluations. VantageScore 4.0 may benefit borrowers with limited credit histories or small collections, potentially lowering fees and interest rates. Not all lenders have adopted this option, and Fannie Mae still requires Classic FICO for manual underwriting. Borrowers are encouraged to ask lenders about using VantageScore 4.0.