Which FICO Score Do Mortgage Lenders Use?

Your FICO score is what mortgage lenders pull from the major credit bureaus to determine how risky you are as a borrower. But since every credit bureau uses a different FICO score variant, which FICO score do mortgage lenders use?

The answer is a bit complicated. Most mortgage lenders blend the scores from Experian, TransUnion, and Equifax to create a tri-merge credit report, which they then use along with other factors to assess your credit worthiness as a whole. We’ll dive into the details so you can know what to expect with your FICO scores when applying for a mortgage.

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What is a FICO score?

A FICO (Fair Isaac Corporation) score is a type of credit score used by the major credit bureaus that helps lenders evaluate a borrower’s risk and determine if their credit is strong enough to buy a house. The score is based on the information on the borrower's credit report, including the following:

• Payment history
• Amounts owed
• Credit mix
• New credit accounts
• Length of credit history. 

A FICO score typically ranges from 300 to 850. Although the foundation remains the same, FICO scoring models are always evolving to keep pace with financial shifts and technology improvements.

Why does my FICO score differ between credit bureaus?

Depending on what version of FICO score a credit bureau uses, the individual components of the score will be weighted differently, which is why each credit bureau will give you a slightly different score.

A higher FICO score means you’re a less risky borrower for lenders. Additionally, this could mean higher chances of approval, lower interest rates, and more favorable terms. Keeping your score as high as possible is a good way to make it more likely that mortgage lenders (and other types of lenders) will be willing to work with you.

Which FICO score do mortgage lenders use?

The majority of mortgage lenders (with the exception of non-conforming or portfolio lenders) use three different classic FICO scoring models to determine which FICO score to use for your account. They include the following:

• FICO Score 2 
• FICO Score 4 
• FICO Score 5 

Since Experian, Equifax, and TransUnion all use bureau-specific FICO score models, most lenders pull what's called a tri-merge credit report that includes your credit data from all three major credit bureaus. Many lenders take the median of those three when making lending decisions, but it’s not a universal strategy and each lender has a different policy. 

If you’re applying for a mortgage with a co-signer, lenders will pull credit scores for each applicant. For many conforming loans, they often take the middle score from each borrower’s tri-merge report and then use the lower of those two scores when evaluating the loan. However, policies can vary by lender and loan type, so it’s always best to ask your lender how they handle co-signer credit scores.

How much do FICO scores differ between lenders?

If you’re wondering how far apart your FICO Score 2, 4, and 5 might be, it’s best to get a free credit report to see where the differences lie. Since the various models include so many factors, there is no hard-and-fast way to know exactly how big of a difference there will be between your scores from the three major credit bureaus. Several factors cause variations in your FICO Score, including the following:

• Timing of updates
• Inconsistent reporting from creditors
• Errors or outdated information on one bureau
• Recent changes in your credit (new accounts, paid-off loans, or closed accounts)

Due to these variations, it’s wise to check your credit score from all three bureaus before applying for a mortgage. Then if there is anything incorrect still on one of your credit reports, you can get it resolved ahead of time to improve your score.

What about lenders who don’t sell loans to Fannie Mae or Freddie Mac?

Not all mortgages are sold to Fannie Mae or Freddie Mac, which are government-sponsored enterprises (GSEs). The goal of these two institutions is to stabilize and expand the housing market by making mortgage funding more widely available. Lenders who hold loans in their own portfolio (portfolio lenders) or issue jumbo loans have more flexibility in evaluating credit. These lenders might do the following with FICO scores:

• Use classic FICO versions 2, 4, or 5
• Use newer FICO models like 8, 9, 10, or 10T
• Use VantageScore 
• Look at other data like bank statements, assets, or bill payments
• Develop their own internal scoring or overlays

If you're working with a portfolio lender or getting a jumbo loan that exceeds conforming loan limits, ask specifically which credit scoring model they use. 

FICO scoring models are evolving 

The U.S. Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, recently announced the following newer credit scoring models are validated for use by government-sponsored entities. On a soon to be determined date, lenders who sell to Fannie Mae and Freddie Mac will be able to use:

• FICO Score 10T (the latest FICO version)
• VantageScore 4.0 (an alternative scoring model)

According to the FHFA's policy update, this change is designed to make credit evaluation more accurate and potentially expand access to credit for underserved borrowers. Lenders will have the flexibility to choose which scoring model they use, and there will be a transition period where both old and new models are acceptable.

The guidance indicates that the new models will treat certain factors differently:

• Paid collections will have less impact
• Medical debt will be weighted less heavily
• Rental payment history may be factored in
• Trended credit data (showing your payment patterns over time) will be considered

So what does this mean for borrowers? If you're planning to buy a home in 2025 or later, these changes could work in your favor. This is especially true if your credit score is less than perfect. You might also benefit from VantageScore 4.0, which factors in rent payments and other utilities.

How to improve your FICO credit score

There are five categories that impact FICO scores. Focusing on improving them can boost your credit score.

Payment history

Your reliability to repay borrowed money is one of the critical factors, and it contributes to 35% of your FICO score. Paying all your bills on time demonstrates financial responsibility and builds a strong credit history. Late or missed payments, defaults, collections, or bankruptcies can lower your credit score. Even a single late payment can stay on your credit report for up to seven years.

Credit utilization

The amount of credit you’re using compared to your available credit contributes to 30% of your FICO score. Keeping your credit utilization ratio below 30% shows you can manage debt responsibly, while a high percentage suggests you’re overextended and may lower your credit score. Use our credit utilization calculator to see where your utilization is at.

Length of credit history

The age of open and closed credit accounts add to 15% of your FICO score. Lenders prefer to work with borrowers who have experience managing debt. Having older, well-managed accounts increases the average age of your credit history. Closing old accounts and opening many new ones lowers the average age of your credit accounts.

Credit mix

Credit scoring models also want to see about a 10% mix of revolving credit (credit cards) and installment loans (personal, auto, mortgages, or student loans). Managing different types of credit shows responsibility with debt. Having only credit cards or installment loans might limit your score potential.

New credit

Recent credit inquiries and newly opened credit accounts contribute 10% of your FICO score. If lenders see that you’ve applied for multiple credit lines within a short period, your credit score may go down. However, this doesn’t apply if you’re shopping around for a mortgage and getting preapproval letters from multiple lenders, provided that it’s within the 45-day window.

Minimum credit score requirement by loan type

Your credit score is a major factor lenders look at when applying for a loan. Here are the minimum credit score requirements for major loan types.

Keep in mind that minimum credit score requirements may vary by mortgage lender and loan type because of overlays. Plus, your eligibility depends not just on credit score but also income, debt-to-income ratio, down payment, and property type. That’s why it’s always a good idea to get prequalified for a mortgage to see how much you can borrow before you make an offer on a house.

Plan ahead to keep your FICO score in shape

Mortgage lenders use FICO Score 2, 4, and 5 from the three credit bureaus and take the median score. FICO is the dominant scoring engine for mortgages. However, newer models (FICO 10T, VantageScore 4.0) are being phased in for GSE loans under recent FHFA rules, so these scoring methods will likely evolve over the coming years.

Before applying for a mortgage, make sure you pull your credit reports from the three bureaus and dispute any errors you find. Also, ask your lender which specific FICO scores they'll use and whether they've adopted the new models—this will help you optimize your score so you can hopefully get the best lending terms you can.