If you are applying for a conventional mortgage in North Carolina, your lender may have another way to evaluate your credit. On September 9, 2026, Fannie Mae and Freddie Mac broadened the use of VantageScore 4.0 to all of their approved lenders. Classic FICO remains an option, and a different scoring model does not promise a higher score or a different loan decision.
What changed for conventional mortgage lenders?
Fannie Mae and Freddie Mac buy mortgages from lenders, which helps support much of the conventional mortgage market. The Federal Housing Finance Agency oversees both companies. Its credit score update says approved lenders may choose Classic FICO or VantageScore 4.0 when originating and selling an eligible loan to either company.
Before this change, the newer model had been introduced through a more limited rollout. Broadening lender access removes the need for prior written approval to use it. The change took effect when it was announced, but that does not mean every lender switched models that day. A lender may keep using Classic FICO while its systems, staff, and credit-reporting process are prepared for another option.
Fannie Mae also said in its lender letter that FICO Score 10T cannot yet be delivered for these loans. Further guidance is expected before that model becomes part of the delivery process.
Why might the score be different?
A credit score is a model's reading of information in your credit reports. The report is the underlying record of accounts, balances, payment history, and other information supplied to a credit bureau. A score is the result produced when a particular formula evaluates that record.
Classic FICO and VantageScore 4.0 do not weigh every detail in exactly the same way. The same credit report can therefore produce different scores. That difference does not mean one report is more accurate, and it does not mean your credit history changed overnight. It means two formulas interpreted the same source information.
FHFA says VantageScore 4.0 can consider additional sources of data, including rent payment history when it appears in the information used for scoring. Paying rent does not automatically place that history in every credit file. Ask your lender what its report contains instead of assuming your rent payments will affect the score it receives.
Does this mean my lender will choose the better score?
Not necessarily. The policy gives lenders a choice of eligible model; it does not give a borrower the right to select whichever result looks highest. A lender must follow the rules for the model it uses, its underwriting system, and the mortgage it expects to deliver.
The same model must also be used for every borrower on one loan. A lender cannot use VantageScore 4.0 for one co-borrower and Classic FICO for another simply because that combination produces a preferred result. If you are applying with a partner, relative, or other co-borrower, ask how the lender will evaluate the group.
A score remains only one part of mortgage underwriting. A lender may also review income, debts, assets, employment, the property, and the requested loan structure. A newer model does not override those parts of the file, determine approval on its own, or repair an error in a credit report.
What does this mean if I need down payment assistance?
The first mortgage and the assistance program have to work together, but they are separate reviews. Fannie Mae or Freddie Mac requirements may guide the conventional first mortgage. The assistance provider sets its own rules, and the participating lender must confirm that the mortgage, assistance, buyer, and property fit the full transaction.
If you are considering the NC Home Advantage Mortgage and its associated help, review the NC Home Advantage Mortgage program page. It shows sourced details for the mortgage and the assistance that comes with it. Then ask a participating lender which credit score model it uses for the first mortgage and whether that choice changes any part of the assistance review.
Do not assume the score-model update changes an assistance program's income limits, property requirements, education rules, or other conditions. Those requirements need their own review.
What should I do before applying?
1. Read all of your credit reports
Look for accounts you do not recognize, balances that seem wrong, or payments reported late when you paid on time. If you find an error, follow the credit bureau's dispute process and keep copies of what you submit. Changing the scoring formula does not correct bad source data.
2. Ask which model the lender uses
Ask whether the lender uses Classic FICO, VantageScore 4.0, or has a process for both on the kind of conventional mortgage you are considering. Also ask whether the answer depends on when the credit report is ordered or when the file enters underwriting.
3. Ask what happens with a co-borrower
If someone else will be on the loan, ask how the lender selects the score used to evaluate the transaction. The lender should explain its process without promising that one model will produce a better outcome.
4. Keep the rest of the file steady
Avoid opening credit you do not need or making a major financed purchase during a home search without speaking with your lender. Keep documents for income, assets, debts, and housing payments organized. A score-model choice cannot make up for missing records elsewhere in the application.
What is not settled yet?
Lenders may adopt VantageScore 4.0 at different speeds. Some may use it for eligible files soon, while others may continue with Classic FICO as they complete operational work. Fannie Mae and Freddie Mac may also issue more guidance as the broader credit-score modernization effort continues.
FICO Score 10T is a separate part of that effort and is not part of this immediate conventional-loan change. The timing for a lender's use of that model is not settled by the September announcement. Ask what the lender can actually use for your file rather than relying on a general description of future plans.
The bottom line
Fannie Mae and Freddie Mac approved lenders may use VantageScore 4.0 for eligible conventional mortgages, while Classic FICO remains an option. The change broadens lender choice; it does not ensure a higher score, require every lender to switch, or determine the mortgage result by itself.
Start with the North Carolina homebuyer program map, then ask a participating lender which model it uses, how it handles co-borrowers, and how the first mortgage will be reviewed alongside any down payment assistance. For the FHA side of the same shift, read how FHA is adding credit score models.