Rocket Mortgage in Detroit, part of Rocket Cos., will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for all eligible loans starting in the fourth quarter of 2026.
After roughly four months of testing, the company found that VantageScore helped more clients qualify and move forward in the mortgage process, while also reducing credit scoring costs.
During the fourth quarter, the company will default to VantageScore 4.0 for mortgages that will be delivered to Fannie Mae, Freddie Mac, VA home loans, and any other eligible mortgages.
“The mortgage industry has relied on one credit scoring model for decades,” says Jay Bray, CEO of Rocket Mortgage. “Competition is healthy, especially when it can lower costs and expand responsible access to homeownership.
“We did the work, compared the models, and chose the one that helped more qualified clients. With our mission to ‘help everyone home,’ this decision only made sense. We thank Federal Housing Finance Agency Director (Bill) Pulte for his leadership in encouraging multiple credit scoring models that ultimately benefit the American homebuyer.”
With innovation and competition, Rocket Mortgage says there are additional ways to help people buy and refinance homes. So far this year, the company obtained 1.4 million credit reports using both VantageScore and FICO.
Rocket Mortgage reports it did an “extensive” study that helped the company determine VantageScore 4.0 opens access to some clients who wouldn’t be served otherwise, and many are able to secure a mortgage on better pricing terms. For those who saved money with VantageScore 4.0, the savings was an average of $1,600 at closing.
The Federal Housing Finance Agency and Pulte, who also is chairman of Fannie Mae and Freddie Mac, are said to be encouraging competition and innovation in pilot programs. Rocket Mortgage is now ready to shift credit scores to the latest technology and will continue to evaluate new options as they become available.
VantageScore 4.0 evaluates how a person’s credit behavior changes over time, including patterns in balances and payments. The model incorporates rent and utility payment information when it’s included in a consumer’s credit file, enabling it to generate scores for some consumers whose limited credit histories leave them without a score under conventional models.
For aspiring homeowners, that additional financial history gives lenders more information to assess their creditworthiness.
The transition will apply to all Rocket Mortgage direct-to-consumer loan products that currently allow VantageScore use. For now, mortgages for investment properties and second homes, home equity loans, FHA loans, jumbo loans, and some other products will still use FICO scores.
Rocket Pro, the division of Rocket Mortgage that provides home loans through mortgage broker partners, will provide both VantageScore and FICO to mortgage brokers, as part of its commitment to broker optionality. In addition to credit, mortgage approval also depends on income, debt, assets, property, and other loan requirements.
For more information, visit RocketMortgage.com.
