HUD Announced New Mortgage Credit Policies
The federal agency confirmed it will adopt alternative credit-scoring models for mortgage approvals starting in 2027.
Updated on Oct. 13, 2026 in Residential
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HUD Secretary Scott Turner visited Palm Harbor, Florida, to discuss strategies for addressing the national housing supply deficit. The Federal Housing Administration also announced that it will begin using two new credit-scoring models for mortgage applicants in 2027.
Why it matters
By adopting these new models, the administration aims to expand homeownership opportunities for young Americans. These policy changes seek to help more people build generational wealth amid a significant nationwide shortage of housing units.
The FHA will adopt VantageScore 4.0 and FICO Score 10T as approved credit-scoring models for mortgage applications. These tools will incorporate rental and utility payment records into credit evaluations.
The players
Scott Turner
Scott Turner is the HUD Secretary who visited Florida to promote federal housing initiatives.
Federal Housing Administration
The Federal Housing Administration is the government entity that will implement new credit-scoring models for mortgage approvals.
The details
The administration is currently working to streamline federal regulations to encourage residential development across the country. Current data indicates that the median age of first-time homebuyers has climbed to 40, with this demographic accounting for only 21% of all home purchases.
Timeline
The median age of first-time homebuyers reached 40 in 2025.
HUD Secretary Scott Turner visited Palm Harbor, Florida, on Oct. 13, 2026.
The FHA will begin accepting new credit-scoring models on Jan. 1, 2027.
Culture Shift
The shift toward including non-traditional data like utility payments marks a move to modernize the evaluation of homebuyer readiness. This change adapts to a society where legacy credit scores often fail to reflect the financial habits of a generation struggling with housing affordability.
Prospective buyers who currently lack traditional credit histories may find it easier to qualify for FHA-backed mortgages once these new scoring models take effect. Homeowners should anticipate that these changes are designed to broaden access for those previously excluded from the conventional lending market.
The takeaway
Prospective buyers should monitor their utility and rental payment records as these will soon influence mortgage eligibility. Improving these payment histories may provide a practical path toward securing home financing under the upcoming 2027 standards.
What happens next
The FHA will implement its new credit-scoring models, including VantageScore 4.0 and FICO Score 10T, on Jan. 1, 2027.
Further reading
Learn more about evolving home ownership rules on the Residential section page.
Source note: This article includes information reported by Spectrum News Bay News 9.
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