Could VantageScore 4.0 Credit Score Help You Buy a Home?

If you’re getting ready to buy a home, you’ve probably heard a lot about credit scores lately.

That’s because mortgage lenders now have a new credit scoring model to choose from. It’s called VantageScore 4.0.

Since September 2026, any lender that sells its home loans to Fannie Mae or Freddie Mac can use it instead of the older score most lenders have used for years, called Classic FICO. (Fannie Mae and Freddie Mac are companies that buy a large share of U.S. home loans from lenders.)

The good news is that VantageScore 4.0 is easy to understand. Once you know what it looks at, you can take simple steps to raise your score.

Here’s what VantageScore 4.0 is, what’s new about it, and how to build a stronger score before you apply for a home loan.

What Is VantageScore 4.0?

VantageScore is a credit scoring company owned by the three major credit bureaus, Equifax, Experian, and TransUnion, the companies that keep your credit reports. VantageScore was first created as an alternative to FICO and other traditional credit scores.

Like other credit scores, VantageScore 4.0 is a number from 300 to 850. A higher score tells lenders you’re more likely to pay back what you borrow.

VantageScore groups scores into four tiers:

Each lender picks its own minimum score. Some homebuyer programs set their own minimums too. For example, many first-time homebuyer programs and down payment assistance (DPA) programs require a certain credit score to qualify. So use these credit score groups as a general guide, not as a yes-or-no answer.

You also have more than one VantageScore. There’s a score for each of your three credit reports, and you may have both a VantageScore 3.0 and a 4.0. That’s one reason the score your bank’s app shows you may not match the one your mortgage lender sees. The best way to see your mortgage score is to get preapproved by a lender.

What’s Different About VantageScore 4.0?

VantageScore 4.0 builds on the older 3.0 model, which many banks and credit card apps still use. There are two big changes.

1. It Looks at Your Habits Over Time

VantageScore 3.0 only looked at how much of your credit you used in the past month.

VantageScore 4.0 looks back up to two years. That means it can see whether your balances are going down, holding steady, or creeping up.

If you’ve been paying down your cards, that progress can now work in your favor.

2. It Weighs Some Things Differently

VantageScore shares how much each factor counts toward your score. Here’s how the two versions compare:

The biggest shifts:

• Recent credit counts more than twice as much – Opening new accounts or applying for credit has a bigger effect in 4.0.
• Total balances count about half as much – High balances can still lower your score, even if you’re current on payments, but they count for less than before.
• Paying on time is still number one – Payment history makes up the largest share in both versions.

What Goes Into Your VantageScore?

Here’s what each factor means in everyday terms.

• Payment history – Do you pay your bills on time? Late payments hurt, especially recent ones or ones that are very late. They stay on your report for seven years, but their impact fades over time.
• Depth of credit – How long you’ve had credit and what types you use. Older accounts help, and so does showing you can handle both credit cards and installment loans like a car loan.
• Credit utilization – How much of your available credit you’re using. VantageScore suggests keeping it under 30%, but above zero.
• Recent credit – How many accounts you’ve opened lately and how many times lenders have checked your credit for an application.
• Balances – The total you owe across all your accounts.
• Available credit – How much unused credit you have on your cards. More can help a little.

Shopping for a Mortgage Won’t Count Against You Multiple Times

Each time you apply for credit, your score can dip a few points. But VantageScore treats all the credit checks within a 14-day window as one.

That means you can compare mortgage lenders without being penalized for each application, as long as you do it within two weeks.

How Do Rent Payments Help?

For many first-time buyers, rent is the biggest bill they pay each month. VantageScore 4.0 can count those payments, but only if they show up on your credit report.

That’s a big change. VantageScore was the first credit score to use rent payment history. Older scores, like the Classic FICO score many lenders use, don’t count rent.

Why It Matters

• It can help you get a score in the first place – Some people don’t have enough credit history to get a score. When VantageScore added on-time rent for these renters, they got an average score of 654.
• It can help you reach a mortgage-ready score – VantageScore estimates nearly 4 million renters could reach a score of 620 or higher if their on-time rent were reported. 620 is a common minimum score for many home loans.
• Most renters aren’t getting credit for rent yet – Only about 13% of renters have their rent reported to the credit bureaus.

How to Get Your Rent Reported

• Ask your landlord or property manager – Some already report on-time rent to the credit bureaus. Some states, like California and Colorado, now require many landlords to offer it.
• Sign up for a rent-reporting service – Some services report your rent for you, sometimes for a fee. Check that it reports to all three credit bureaus.
• Check your credit reports – Make sure your rent payments actually show up.

Keep in mind: Late rent payments can hurt your score if they’re reported. And if your lender uses Classic FICO, your rent won’t count toward that score. That’s one more reason to ask your lender which score they use.

Real-World Examples

How Can You Build a Stronger VantageScore?

The best time to start is now, even if you’re a year or more away from buying. Here are a few helpful steps.

1. Pay Every Bill on Time – This is the single biggest factor. Automatic payments or reminders can help.
2. Keep Card Balances Under 30% – And keep it there month after month. VantageScore 4.0 looks at up to two years of history, so consistency matters.
3. Get Credit for Your Rent – Ask your landlord if they report your on-time rent, or sign up for a rent-reporting service. VantageScore 4.0 can count it once it’s on your credit report.
4. Pause New Credit Before You Apply – New accounts count more in VantageScore 4.0. Try to avoid opening cards (perhaps to buy furniture) or loans (like for a car) in the months before a mortgage application.
5. Shop for Rates Within Two Weeks – Submit mortgage applications within 14 days so they count as one credit check.
6. Don’t Open Loans Just for Your Score – A mix of credit helps, but it’s not worth taking on debt you don’t need.
7. Try a Secured Card if You’re Rebuilding – With a secured card, you pay a deposit up front, and that deposit becomes your spending limit. Your on-time payments get reported just like a regular card.
8. Check All Three Credit Reports – Your score can be different at each credit bureau. Make sure each report is correct. You can get free reports at AnnualCreditReport.com.
9. Get Support – A housing counselor can review your credit and help you build a plan.

Why Homebuyer Education Matters

Understanding your credit score is a great start, but it’s only one part of buying a home.

Homebuyer education can help you:

• Build and protect your credit
• Understand how lenders make decisions
• Plan for your down payment and closing costs
• Navigate the homebuying process step by step
• Meet homebuyer education requirements for certain loans and down payment assistance programs.

Take the Next Step Toward Homeownership

VantageScore 4.0 gives more lenders a new way to see your credit. Knowing how it works helps you show them your best.

Framework’s online homebuyer education course walks you through each step, from building credit to closing day. It meets national industry standards and is accepted by many state, local, and nonprofit first-time homebuyer and affordable homeownership programs.

Wherever you are in your journey, learning the process,  buy with confidence, and save money along the way.