Fannie Mae, Freddie Mac Expand Mortgage Credit Access Using VantageScore 4.0

The U.S. economy showed signs of stabilization in June 2025 with the addition of 147,000 jobs and a steady unemployment rate of 4.1%, though labor force participation declined and wage growth slowed, indicating mixed signals about economic strength. Meanwhile, Fannie Mae and Freddie Mac have approved the use of VantageScore 4.0 alongside FICO for mortgage credit evaluations, a move aimed at expanding credit access, particularly for underrepresented borrowers, by incorporating alternative data such as rent and utility payments. Credit scoring remains a critical factor in mortgage qualification and interest rates, with experts emphasizing consistent, timely repayments, low credit utilization, and diverse credit types as key habits for improving scores from sub-600 to 800+ levels. Regular monitoring of credit reports to correct errors and avoid unauthorized activities is also vital for maintaining a strong credit profile. A good credit score not only facilitates loan and mortgage approvals but also secures lower interest rates, higher credit limits, and better insurance premiums, underscoring its broad financial benefits. These developments collectively highlight the evolving landscape of credit access and financial health strategies for American consumers.