Blog > Credit Score Changes in 2025: What Home Buyers and Refinance Borrowers Must Know Before Applying

Credit Score Changes in 2025: What Home Buyers and Refinance Borrowers Must Know Before Applying

by Latonia Knox

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Top 10 Credit Score Rule Changes (2025–2026) That Can Impact Your Mortgage Approval

Credit scoring for mortgages is changing. New rules and model updates can affect how your profile is evaluated for a home purchase, refinance, or getting mortgage-ready. Below are the 10 biggest changes and the simplest moves you can make to keep your scores and approval odds moving in the right direction.

Quick takeaway

  • Mortgage underwriting is shifting toward more data and more scoring options.
  • Consistency matters more: trended data can reward stable behavior and punish “spikes” in balances.
  • New credit inputs like BNPL can help or hurt depending on how you use it.

The Top 10 Changes and What To Do

  1. Fannie Mae: No minimum credit score required in Desktop Underwriter (DU)

    Starting November 15, 2025, DU no longer requires a minimum third-party credit score. DU uses Fannie Mae’s proprietary credit risk assessment to evaluate eligibility for sale to Fannie Mae.

    Do this: If your score is borderline, focus on the fundamentals lenders still review hard: on-time payments, lower utilization, stable income, and reasonable DTI.

  2. FHFA: Lenders can choose between Classic FICO and VantageScore 4.0 for GSE loans

    FHFA directed Fannie Mae and Freddie Mac to allow lenders to choose between Classic FICO and VantageScore 4.0.

    Do this: Check both score types before you apply. If one looks stronger, talk to your lender about how they evaluate credit for the specific program.

  3. FHFA plan: dual-score delivery (FICO 10T + VantageScore 4.0) is the direction of travel

    FHFA has approved FICO 10T and VantageScore 4.0 for the Enterprises and continues pushing implementation steps.

    Do this: Build “score resilience.” Keep balances low month after month (not just right before you apply).

  4. FICO 10T: trended data gets more weight

    FICO 10T uses trended credit data (how you manage balances over time), not only a single snapshot.

    Do this: Stop the “yo-yo” pattern. Keep credit card utilization consistently low, and consider paying mid-month so lower balances are reported.

  5. BNPL is now part of new FICO scores (FICO Score 10 BNPL and 10T BNPL)

    FICO launched scores that incorporate Buy Now, Pay Later (BNPL) data. BNPL activity can add risk signals if it looks like debt stacking or missed payments.

    Do this: If you are mortgage shopping, reduce BNPL use. If you do use it, never miss a payment and avoid multiple concurrent plans.

  6. Mortgage scores are not always the same as the scores you see online

    Mortgage lending can use different scoring versions than the consumer score you see in apps. That is why “my score says 720” can still show up differently on a mortgage pull.

    Do this: Ask your lender to review your mortgage credit results with you early, before you lock in a home or rate decision.

  7. Thin-file borrowers may be scored more often as models expand usable data

    Newer models are designed to score more consumers, especially people with limited traditional credit history.

    Do this: Build a clean baseline: one or two revolving accounts, low utilization, and 6–12 months of perfect payment history.

  8. Higher balances can hurt faster under trended models

    Even if you pay on time, rising balances and high utilization can signal risk when the model looks at your trend.

    Do this: Target utilization under 30% (ideally under 10%) on each card, not just overall.

  9. Credit report accuracy matters more as underwriting becomes more automated

    Automated underwriting still relies on your credit file. Errors like wrong limits, incorrect lates, or duplicated accounts can cost you points and pricing.

    Do this: Pull your reports and dispute errors early. Keep documentation and follow up until the bureau corrects it.

  10. Risk-based pricing remains real: score tiers can change your payment

    Rate and pricing can shift materially across credit score tiers, which impacts affordability and refinance savings.

    Do this: If you are within 20–40 points of a better tier, ask for a targeted plan to boost score quickly (pay down balances, correct errors, optimize reporting).

Mortgage-ready checklist (do this in order)

  1. Stop new credit (no new cards, no new BNPL, no new auto loans) while preparing for pre-approval.
  2. Pay down revolving balances and keep them low for 60–90 days.
  3. Fix errors on credit reports immediately.
  4. Stabilize payments (no late payments, no skipped payments, no collections activity).
  5. Get a mortgage review so you know the score and DTI lenders will actually use.

Ready for a mortgage game plan?

If you are buying or refinancing and want a clear plan, start here:

Disclaimerhttps://fortknoxrealty.com/: Credit scoring and underwriting vary by lender, loan program, and credit profile. This article is for education only and is not credit repair or legal advice.

Sources (recent policy and model updates)

Latonia Knox
Latonia Knox

Broker Associate | License ID: Ga: 365526 Mi: 6506048686

+1(678) 674-7929 | lknox@axenrealty.com

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