Rocket Mortgage Adopts New Credit Scoring Model, Potentially Broadening Homeownership Access

Rocket Mortgage announced it will become the first major home lender to adopt VantageScore 4.0 as its preferred credit scoring model for eligible loans. This shift could provide a new pathway to homeownership for millions of Americans who have historically been shut out by traditional credit scoring methods that primarily rely on FICO scores.

The new model incorporates rental and utility payment history, which can be beneficial for individuals with limited credit backgrounds. Experts suggest this change could particularly help younger, first-time homebuyers, and those who have consistently paid bills but lacked extensive traditional credit histories.

In testing, Rocket Mortgage found that some borrowers who benefited from the VantageScore 4.0 system saved an average of $1,600 in closing costs. The company plans to begin using VantageScore 4.0 for eligible mortgages delivered to Fannie Mae and Freddie Mac, VA home loans, and other qualifying products starting in the fourth quarter of 2026.

This development follows a recent expansion by federal housing regulators that allows all Fannie Mae- and Freddie Mac-approved lenders to use VantageScore 4.0 for eligible mortgages without prior approval. "The mortgage industry has relied on one credit scoring model for decades. Competition is healthy, especially when it can lower costs and expand responsible access to homeownership," said Jay Bray, CEO of Rocket Mortgage, in a statement. "We did the work, compared the models and chose the one that helped more qualified clients."

While the adoption of VantageScore 4.0 is seen as a positive step, it does not guarantee automatic mortgage approval or lower costs for all borrowers. Credit scores remain just one component of the mortgage approval process, with lenders also evaluating income, debt, assets, and property details. Brokers emphasize that the new model offers lenders an additional perspective on borrower risk rather than qualifying unqualified individuals.

For some potential buyers, even a small improvement in their credit score, facilitated by the new model, could translate into significant savings over the life of a mortgage. However, certain loan types, including FHA, jumbo, investment-property, and second-home mortgages, will continue to utilize FICO scores at Rocket Mortgage for the time being. The company's mortgage-broker division will also continue to offer both scoring models. The broader industry's transition to alternative scoring models has been a gradual process due to the long-standing integration of FICO into lender guidelines and underwriting systems.