What Credit Scores Will FHA Accept in 2027?
For FHA forward mortgages with case numbers assigned on or after January 1, 2027, lenders can use FICO 10T and VantageScore 4.0 as well as Classic FICO. HUD announced the change in a mortgagee letter dated October 8, 2026, and the minimum scores FHA requires don't change. HECM reverse mortgages are treated separately: HUD says that program doesn't use credit scores as an underwriting component.
Last updated October 21, 2026Why the newer scores matter
They can see more of your history. HUD's letter says the new models use trended data, which looks at how you've handled credit over time, and non-traditional credit like rent and utilities. A borrower who has paid rent and utilities on time for years but carries little traditional debt is the kind of history these models count.
What stays the same
The thresholds. HUD says FHA will keep requiring a credit report from all three bureaus, and the existing minimum score thresholds stay the same whichever model the lender uses. On a forward mortgage for a borrower with traditional credit:
- 580 or higher: eligible for FHA's maximum financing
- 500 to 579: limited to 90% loan-to-value
- Below 500: not eligible for FHA-insured financing
Some FHA loans don't use the minimum score this way. HUD's letter lists exceptions including streamline refinances and assumptions, and borrowers with non-traditional or insufficient credit histories are eligible for maximum financing when the loan is manually underwritten.
How the score is picked
On a forward mortgage, for each borrower, the lender takes one score from each model it uses: the middle of three scores, the lower of two, or the only one reported. If it uses more than one model, your score is the lowest of those. When there's more than one borrower, the lowest borrower's score is the one that counts. The lender has to use the same model for everyone on the loan; HUD's own example is that a lender may not use FICO 10T for the primary borrower and VantageScore 4.0 for the co-borrower.
What to do if you're buying with FHA in 2027
Check whether your rent and utility payments appear on your credit reports, since that's the history the newer models use. When you talk to a lender, ask which score models it will run. HUD's letter lets the lender submit one or more model types, as long as it uses the same ones for every borrower.
| New scores | FICO 10T and VantageScore 4.0, alongside Classic FICO |
|---|---|
| Effective | Case numbers assigned on or after January 1, 2027 |
| Programs | FHA forward mortgages; HECM reverse mortgages don't use credit scores in underwriting |
| Minimum scores | Unchanged for forward loans with traditional credit: 580 for maximum financing, 500 to 579 capped at 90% loan-to-value, below 500 ineligible |
| Credit report | Still a three-bureau report |
| More than one model or borrower | The lowest score counts; every borrower on the same model |
Related questions
Sources
- https://www.hud.gov/sites/default/files/hudclips/documents/2026-11hsgml.pdf
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.