<ul data-eligibleForWebStory="false"><li>A new rule introduced by Fannie Mae and Freddie Mac allows the use of VantageScore 4.0, a more flexible credit scoring model, enabling millions with limited credit history to qualify for mortgages.</li><li>VantageScore 4.0 requires as little as one account, like a credit card or a collection, to generate a score, making it beneficial for first-time buyers and individuals who primarily pay in cash.</li><li>This change aims to reduce closing costs and expand homeownership access for groups like rural residents, renters, and young buyers with unconventional credit histories.</li><li>VantageScore 4.0 considers nontraditional data like rent and utility payments, excluding medical debt and paid collections, potentially opening up mortgage opportunities for more individuals.</li></ul>

Homeownership Just Got Easier For Millions With Limited Credit History—Here’s Why

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