Credit-Score Wars: What Investors Need to Know — and How InterCapital Funding Keeps You Ahead
The long-running duel between scoring giants FICO® and VantageScore® just intensified. On July 8, Federal Housing Finance Agency Director Sandra L. Thompson announced that Fannie Mae and Freddie Mac will now accept VantageScore 4.0 alongside the long-used Classic FICO model when lenders underwrite conforming mortgages.
Why the Change Matters
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New data sources open doors.
VantageScore 4.0 considers on-time rent, utility, and telecom payments—records that many minority households already have—potentially qualifying millions of renters who were invisible under Classic FICO.
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Competition could cut costs.
Allowing two models ends FICO’s single-vendor lock, pressuring both companies to innovate and keep pricing reasonable for lenders and, ultimately, borrowers.
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Debate over default risk continues.
Critics, including FICO’s CEO, warn that less stringent credit criteria could raise delinquency rates. Supporters counter that rigorous testing shows VantageScore 4.0 predicts risk better than legacy FICO for consumers with thinner credit files.
What Comes Next
The GSEs still must iron out implementation details—how scores will be ordered, how lenders will price loans, and how quickly new scoring will filter through automated underwriting. Expect a phased rollout beginning in 2026.
How InterCapital Funding Positions You to Win
As “the bank for the unbankable,” InterCapital Funding has always looked beyond traditional credit screens. Our bridge-loan, fix-and-flip, and DSCR programs already evaluate rent history, cash-flow strength, and real-asset collateral—metrics that the mainstream is only now beginning to embrace.
- Inclusive underwriting.We’ve financed hundreds of minority investors shut out by bank formulas that ignore real-world performance.
- Speed and certainty.Deals close in days, not months, because underserved communities can’t afford to wait while the industry debates scoring models.
- Education first.We coach clients on building robust credit profiles that will shine under both FICO and VantageScore, protecting them from future market shifts.
Ready to Leverage the New Credit Landscape?
Whether you’re a first-time buyer in a revitalizing neighborhood or a seasoned investor scaling your portfolio, InterCapital Funding turns change into opportunity.
👉 Call our Investor Desk today at 248-955-1234
📧 Or start your application at www.icfunding.org 📧 Or start your application at www.icfunding.org