Credit Scoring Is Changing. Could It Help You Buy a Home?

If you've been thinking about buying a home but aren't sure your credit score is high enough, you might be surprised to learn that mortgage requirements aren't always what people think.

Many buyers assume they need a credit score of 700 or higher to qualify for a mortgage, but that's not necessarily the case. Different loan programs have different requirements, and your credit score is just one piece of the puzzle.

In fact, research has shown that many potential homebuyers overestimate the credit score needed to qualify for a mortgage.

And with recent changes to the way mortgage credit scores can be evaluated, this is a good time to take another look at what those numbers really mean.

So, What's Actually Changing?

In September 2026, Fannie Mae and Freddie Mac expanded the use of a newer credit scoring model called VantageScore 4.0.

Previously, mortgage lenders primarily relied on traditional FICO scoring models for loans sold to these organizations. Now, approved lenders have the option to use VantageScore 4.0 for eligible mortgages.

So, what's the difference?

VantageScore 4.0 can consider additional information, including certain rental payment histories when they're reported to credit bureaus, along with patterns in how someone manages their credit over time.

For someone who has consistently paid rent on time but doesn't have an extensive credit history, that additional information could potentially make a difference.

Of course, this doesn't guarantee approval or mean credit requirements are going away. Lenders still look at income, existing debt, and other financial factors.

But it does give some buyers another reason to explore their financing options.

When Was the Last Time You Checked Your Credit Report?

Here's something simple you can do today, whether you're planning to buy a home soon or not.

Check your credit report!

You can request a free credit report from Equifax, Experian, and TransUnion through AnnualCreditReport.com.

And here's a little update that many people may not realize. You can now access your free reports weekly, not just once a year!

Checking your own report doesn't hurt your credit score, and it's a great opportunity to make sure everything being reported is accurate.

Look for unfamiliar accounts, incorrect balances, or payments that may have been reported incorrectly.

Your credit report typically won't include the actual mortgage credit score a lender uses, but it gives you a chance to review the information that helps determine it.

Let's Talk About Your Homebuying Goals!

If you've been thinking about buying a home in St. Charles Parish, whether that's in Luling, Destrehan, Hahnville, or one of our surrounding Louisiana communities, don't let uncertainty about financing stop you from asking questions.

Now, I'm not a mortgage lender, and I'm certainly not going to pretend to be one! But I do have some fantastic lenders in my back pocket who are always happy to help my buyers understand their options.

Whether you're ready to start looking at homes for sale in Luling or you're still a year away from purchasing, we can help you figure out where to begin.

Sometimes that means getting preapproved and starting your home search. Other times, it means working with a lender to put together a plan so you'll be ready when the time comes.

Either way, you don't have to figure it all out alone.

At Brandy Nichols Realty, helping people navigate buying a home in St. Charles Parish is about more than opening doors and showing houses. It's about making sure you have the information, resources, and support to make confident decisions.

Thinking about buying? Reach out! Let's see what your next step could look like.

Brandy Nichols | Brandy Nichols Realty

📧 Brandy@BrandyNicholsRealty.com

📞 504.390.3381

📍 12715 Hwy 90 Suite 210, Luling, LA 70070