First-Time Buyers · 7 min read
Mortgage lenders can now choose between Classic FICO and VantageScore 4.0 on conventional loans, and FHA is adding new models in 2027. Here's which score counts, how lenders pick it, and what Texas buyers should do before applying.
Written and reviewed by Jonathan Sarver, Licensed Mortgage Loan Officer · NMLS #993872
Last updated November 4, 2026
Key takeaways
The score in your banking or credit app may use a different model than the one your mortgage lender uses.
Plenty of buyers call us with a number from an app, then get surprised when the lender’s number doesn’t match. Nothing is necessarily wrong. A “credit score” isn’t one number. Different companies build different scoring models, those models come in different versions, and each of the three credit bureaus can hold slightly different information about you.
A free app might show one model from one or two bureaus. A mortgage lender uses a model approved for mortgages and typically pulls from all three bureaus. Your app is still useful for watching your overall direction, but it’s not a reliable preview of the score that will decide your loan.
Lenders selling conventional loans to Fannie Mae and Freddie Mac can now choose Classic FICO or VantageScore 4.0, and FHA follows in 2027.
For years, Classic FICO was effectively the only score used on most mortgages. That’s changing in stages:
VantageScore says its 4.0 model looks at trends in your credit behavior over time rather than a single snapshot, and that it can score more people with thin or dormant credit histories. For someone who hasn’t used credit in a while, that could matter. For most borrowers, the practical point is simpler: two lenders may now look at you through different models.
With three scores, the lender generally uses the middle one; with two, it uses the lower one.
Knowing this tells you which number really matters. Fannie Mae’s rule works like this:
FHA uses the same middle-or-lower logic for each borrower. Starting in 2027, if a lender submits more than one model for a borrower, the lowest result counts for that borrower, and the lowest borrower score sets the decision score for the loan.
Example scores are illustrative only. Final terms remain subject to credit approval and program guidelines.
That rule is why one low score on a joint application can matter so much. It’s also why your highest score tells you very little.
The practical move — If you’re applying with a spouse or partner, find out both scores before you decide who goes on the loan. Texas is a community property state, so FHA generally counts a non-borrowing spouse’s debts in your qualifying ratios, and other programs may treat them similarly. Ask us before assuming that leaving someone off solves the problem.
There’s no single minimum: each loan program sets its own rules, and individual lenders can set stricter ones.
| Loan type | Credit score rule |
|---|---|
| Conventional, approved through Fannie Mae’s Desktop Underwriter | No set minimum score; the system weighs the overall risk of the file |
| Conventional, manually underwritten (Fannie Mae) | Generally 620 for fixed-rate loans and 640 for adjustable-rate loans |
| FHA | Below 500 is ineligible; 500 to 579 limits maximum financing; 580 or above qualifies for maximum financing |
| VA | VA requires you to meet its credit standards and your lender’s; lenders set their own score requirements |
| Non-QM, such as bank statement loans | Set by each lender and program |
Requirements vary by lender and program. As a broker, we compare several lenders to find the best fit.
Two cautions on that table. “No set minimum” on the conventional line doesn’t mean every score gets approved. The automated system can still say no, and lenders can add their own requirements. And Texas down payment assistance programs can carry their own score requirements, which we cover in our down payment assistance guide.
If you’re self-employed, your score is only part of the picture. See our guide to non-QM bank statement loans.
Clearing a program’s minimum gets you in the door, but your score also helps determine what the loan costs.
Buyers often treat the minimum score like a pass-or-fail test. It isn’t the whole story. Fannie Mae uses the loan’s representative score for pricing on all of its loans, along with factors like the size of your down payment and the type of property.
That has a real consequence: a buyer who just clears the minimum may qualify but pay more than a buyer with stronger credit on the same home. Sometimes it’s worth buying now. Sometimes a few months of cleanup is worth the wait. The honest answer depends on your numbers and your plans, and we’ll show you both paths rather than pushing either one.
The lender chooses the scoring model within the program’s rules, so you generally can’t pick the one you prefer.
On a conventional loan, the lender must use the same model for every borrower on that loan, though it can use different models on different loans. On FHA loans starting in 2027, submitting several models won’t let a lender simply select the best result, because the lowest one counts.
This is where working with a broker helps. Lenders set different requirements and may adopt the new models on different timelines. Since we compare several lenders, a file that doesn’t fit one may fit another. We can’t promise a different result, but we can tell you what we find.
Mortgage credit checks within a 45-day window are recorded as a single inquiry, so you can compare lenders.
Fear of a credit pull keeps many buyers from comparing offers, which can cost far more than the inquiry would. The Consumer Financial Protection Bureau says the effect on your credit is the same no matter how many lenders you consult, as long as the last credit check falls within 45 days of the first.
Some scoring versions use a shorter window, so try to do your comparing within about two weeks. Because we shop multiple lenders for you, you may not need to apply separately with each one.
Check your reports, lower your card balances, and avoid new credit until after you close.
Start early — If your credit needs work, the best time to talk with a loan officer is months before you want to buy, not the week you find a house.
A short conversation can tell you where your credit stands for the loan you actually want.
Tell us what you’re hoping to buy and when. We’ll review your credit with you, explain which score applies to your loan, and tell you what’s worth fixing and what isn’t. You can also run a price range with our affordability calculator or read about FHA, VA and conventional loans.
There is no single number, because the requirement depends on the loan program and the lender. FHA has thresholds at 500 and 580. Fannie Mae has no set minimum for loans approved through its automated system, but it requires at least 620 on most manually underwritten fixed-rate loans. Lenders can also set higher minimums of their own, which is one reason comparing lenders matters.
It depends on the loan and the lender. On loans sold to Fannie Mae and Freddie Mac, lenders may choose Classic FICO or VantageScore 4.0. FHA continues to use Classic FICO and adds VantageScore 4.0 and FICO 10T as accepted models for case numbers assigned on or after January 1, 2027.
Generally, no. The lender chooses the model within the program's rules, and it must use the same model for all borrowers on a conventional loan. You can ask which model a lender uses, and a broker can compare lenders whose requirements differ.
Credit apps and banks may show a different scoring model, a different version of a model, or a score from just one credit bureau. A mortgage lender uses a mortgage-approved model and typically looks at reports from all three bureaus, so the numbers often won't match.
The effect is limited if you shop in a short period. The CFPB says multiple mortgage credit checks within a 45-day window are recorded as a single inquiry. Some scoring versions use a shorter window, so finishing your shopping within about two weeks is the safest approach.
Yes. Fannie Mae uses the lowest qualifying score among all borrowers for pricing, and FHA uses the lowest borrower score as the decision score. Sometimes applying without a spouse is worth comparing, though you would also lose that spouse's income. We can run it both ways.
Jonathan Sarver
Licensed Mortgage Loan Officer · NMLS #993872 · Licensed in Texas
Hill Country Mortgages, Lakeway TX. In mortgages since 2012. Questions about how this applies to your situation? Get in touch.
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