Big News: New Credit Score Model Could Help More Buyers Qualify for a Mortgage in 2025

by Kristen Smith, Realtor

Could You Finally Qualify for a Mortgage in 2025? This New Credit Score Model Says Yes.

If you’ve been told “you don’t qualify” for a mortgage due to your credit score, 2025 may finally be your year. Fannie Mae and Freddie Mac just dropped a major announcement that could open the doors to homeownership for millions of Americans—including right here in San Antonio.

So what’s changing? Let’s break it down.

 

📊 Say Hello to VantageScore 4.0

For decades, mortgage lenders have relied heavily on FICO scores, which often ignore rent payments, utilities, and other real-world financial habits. But starting now, the government-backed mortgage giants will also accept VantageScore 4.0, a newer model that paints a more accurate picture of your financial behavior.

Here’s what makes it different:

  • Uses trended data (it looks at how you manage credit over time)
  • Includes rent and utility payments if reported
  • Designed to be more inclusive for borrowers with thin credit files

 

🏡 How This Helps Home Buyers

This shift is expected to expand access to mortgages especially for:

  • First-time buyers
  • Veterans and active-duty service members
  • Self-employed or gig workers
  • Buyers with limited or non-traditional credit history
  • Communities historically underserved by lenders

If your FICO score has kept you out of the market, this change could put you back in the running.

⚠️ What’s the Catch?

While this change is effective immediately, full implementation will take time. Lenders need to:

  • Update underwriting systems
  • Train staff on the new models
  • Align with investor requirements

So while the rule is in place, expect a gradual rollout as lenders transition to incorporating this model into their approval process.

🧠 What You Should Do Now

Even though I’m a San Antonio Realtor and not a lender, I stay plugged into lending changes so my clients are never caught off guard. Here’s what I recommend:

  1. Monitor both your FICO and VantageScore (yes, you have more than one score)
  2. Make sure rent and utilities are reported to the credit bureaus
  3. Connect with a local lender who understands this update and can help determine where you stand

🎯 Bottom Line

This is the biggest change to credit scoring in the mortgage industry in nearly two decades. It could make the difference between renting another year and finally owning your home.

If you’re in the San Antonio area and wondering what this means for your home search let’s talk. I’ll connect you with trusted local lenders and help you navigate your next steps toward homeownership.

📲 Reach out today and let’s see if 2025 is the year you finally get the keys.

 

Kristen Smith, Realtor
San Antonio’s Veteran Realtor
Helping families buy and sell homes with confidence, clarity, and service.

agent-avatar

"Molly's job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "

+1(210) 784-6527

kristen.smith@lptrealty.com

401 E Sonterra Blvd Suite 375, Unit, San Antonio, TX

GET MORE INFORMATION

Name
Phone*
Message