Rent and light-bill history could soon help millions secure a mortgage. The Federal Housing Finance Agency (FHFA) has told Fannie Mae and Freddie Mac they may now accept VantageScore 4.0, a credit model that counts on-time rent and utility payments, alongside the long-dominant FICO score.
What Happened: Unlike classic FICO, which ignores recurring housing and phone bills, VantageScore 4.0 pulls data from rent, utilities and telecom accounts, according to Investopedia. The shift, its creators say, could open the market to roughly five million first-time buyers.
