If you've been thinking about an FHA loan, there's a credit-scoring update on the horizon that is worth knowing about. In early October, HUD published Mortgagee Letter 2026-11, which formally adds two newer credit score models, VantageScore 4.0 and FICO Score 10T, as acceptable options alongside the Classic FICO scores lenders have used for years. The new guidance applies to FHA case numbers assigned on or after January 1, 2027.
What is changing
The newer models look at how your credit behavior trends over time and can take into account things like rent and utility payments. HUD's letter explains that this broader picture is meant to better measure risk and help more people qualify for homeownership. The letter also sets out how a lender determines the "minimum decision credit score" when more than one score model is on the credit report.
What is not changing
HUD states that FHA will still require a tri-merge credit report, and that the existing minimum credit score thresholds stay the same no matter which score model is used. In other words, this is a new way of measuring, not a lower bar. Everything else about FHA guidelines, including property standards and mortgage insurance, still applies.
How to get ready
- Keep paying on time. Payment history is still the heart of every scoring model.
- Watch your balances. Credit card utilization shows up in all of the models.
- Don't open new accounts right before you apply. Let's talk first so a new inquiry or account doesn't surprise you.
- Ask me where you stand. A short conversation now can save you a lot of guesswork later.
If you're in Clovis, Portales, or anywhere in eastern New Mexico and wondering whether FHA could work for you, I'm happy to walk through your situation. Loans are subject to credit approval, and program rules can change, so I always confirm the latest guidelines before we move forward.