FHA sets how VantageScore 4.0 and FICO 10T scores will be used to qualify
Starting in 2027, lenders can use VantageScore 4.0 and FICO 10T alongside Classic FICO on FHA loans. FHA explained how the qualifying score is picked: the lowest score across the models used, and the lowest among all borrowers. The 500 and 580 score cutoffs, and a full three-bureau credit report, stay the same.
What it means for you: Newer score models count things like rent and utility payments and how you manage debt over time, which may help some buyers. The minimum scores needed for an FHA loan do not change.
Updated income rules and more title options for conventional loans (Fannie Mae)
Income that has an end date must now be expected to continue for at least three years from your application date. Fannie Mae also widened when an attorney opinion letter can be used in place of title insurance, and said a tenant's right to buy a property under a state or local law does not by itself make the loan ineligible. Borrowers who own less than 25% of a business and use its K-1 income will need a verbal job verification.
What it means for you: Borrowers whose income will stop at a set date should expect lenders to check that it lasts three years past the application. Some buyers may have more ways to handle title, and homes in areas with tenant purchase laws are less likely to run into a loan problem.
Some investment property refinances can now skip a full appraisal (Freddie Mac)
Freddie Mac now lets refinances of investment properties qualify for its automated collateral evaluation (ACE and ACE+ PDR). These options let a lender rely on property data instead of a traditional full appraisal. Loan-to-value limits apply.
What it means for you: If you refinance a rental property with a conventional loan and have enough equity, you may not need a full appraisal, which can save time and cost. Your lender's system decides whether your loan qualifies.
VA lowers the Native American Direct Loan rate to 2.47%
VA cut the interest rate on its Native American Direct Loan (NADL) from 2.50% to 2.47%. Loans that close on or after October 1, 2026, get the 2.47% rate for the life of the loan. NADL loans can be used to buy, build, renovate or refinance a home on tribal lands, with no down payment and no monthly mortgage insurance.
What it means for you: Eligible Native American veterans, and veterans married to Native Americans, who close an NADL loan now get a slightly lower fixed rate. The tribe must have an agreement with VA, so check eligibility with a VA NADL coordinator.
Same credit-based pricing whether your loan uses Classic FICO or VantageScore 4.0
Freddie Mac made its credit-based loan fees the same for Classic FICO and VantageScore 4.0.
What it means for you: Which of the two approved score models your lender uses shouldn't change the credit-based fee on your loan.
Servicers can now tell you when you may be able to drop mortgage insurance
Fannie Mae now lets servicers reach out to homeowners whose loans may be close to, or already at, the loan-to-value needed to cancel mortgage insurance based on current home value.
What it means for you: If your home has gained value, you may hear from your servicer about removing monthly mortgage insurance. You can also ask them directly.
VantageScore 4.0 now accepted by all lenders, priced the same as FICO
Any approved lender can now use VantageScore 4.0 for conventional loans (Fannie Mae) run through Desktop Underwriter. Loans priced with VantageScore 4.0 and Classic FICO now get the same pricing adjustments.
What it means for you: Your lender may use a different credit score model than before. All borrowers on one loan must use the same model, and manually underwritten loans still require Classic FICO.
Any lender can now use VantageScore 4.0 on conventional loans (Freddie Mac)
As of September 9, 2026, every lender selling loans to Freddie Mac may use VantageScore 4.0 without prior approval. Classic FICO is still accepted.
What it means for you: More lenders can qualify borrowers with VantageScore 4.0. Ask your lender which score model they'll use.
New rules for counting short-term rental and other rental income
Fannie Mae rewrote its rental income rules and added a policy for short-term rental income, such as vacation rentals. It also changes how rent from a home you're moving out of is counted: based on market rents, with reserve requirements.
What it means for you: If you plan to use short-term rental income or rent from your current home to qualify, expect more documentation and possibly less income counted.
Easier income checks for self-employed and salaried borrowers
Freddie Mac's automated system can now verify self-employed sole-proprietor income using IRS tax transcripts, and accepts a written verification of employment for automated income checks.
What it means for you: Self-employed borrowers and wage earners may need fewer documents, and applications may move faster.
More gift options and simpler large-deposit rules for conventional loans (Freddie Mac)
Freddie Mac now accepts gifts, including gifts of equity, from a business owned by a relative. It also narrowed when lenders must document where a large bank deposit came from.
What it means for you: Buyers getting help from a family business may have more ways to cover the down payment, and some will face fewer questions about deposits.
FHA updates how payment-relief trial plans work for struggling homeowners
If your taxes or insurance go up, your servicer can now adjust your payment between a trial payment plan and the permanent modification, and you can make trial payments early. Turning down a trial plan for the third time in the same delinquency now counts as failing the plan.
What it means for you: If you're behind on an FHA loan, your final modified payment should better reflect real escrow costs. Respond to trial plan offers and apply completely.
Limited 203(k) renovation loans now allow up to 4 contractor draws instead of 2
Contractors on FHA Limited 203(k) renovation loans can now receive up to four payments: an initial draw at closing, up to two during the work, and a final draw. This follows FHA's earlier increase in the Limited 203(k) repair limit to $75,000.
What it means for you: Buyers fixing up a home with a Limited 203(k) may find it easier to hire contractors, since contractors get paid more often as work moves along.
FHA drops the extra "Important Notice to Homebuyers" form
Lenders no longer have to give FHA borrowers Form HUD-92900-B or collect a signed copy. HUD said it repeated disclosures borrowers already receive under other federal rules.
What it means for you: FHA borrowers have one less form to sign, and still get all standard federal loan disclosures.
FHA makes extra appraisal field reviews optional for lender quality checks
Lenders used to have to order a field review on at least 10% of the FHA loans they checked for quality control. That requirement is gone, though lenders must still review every appraisal for completeness and accuracy.
What it means for you: Your appraisal process stays the same. Lower lender costs could indirectly help keep borrower costs down.
VA Partial Claim Program opens to help veterans behind on payments avoid foreclosure
VA has started the Partial Claim Program created by the 2025 law. A homeowner first makes three on-time payments under a trial payment plan. VA then works with the mortgage servicer to pay the missed payments and bring the loan current. You repay the partial claim when you pay off the loan or sell the home.
What it means for you: If you have a VA loan and are behind on payments, ask your mortgage servicer about a partial claim. Some servicers may not offer it until the Nov 28, 2026 deadline.
Fewer extra credit checks for authorized-user accounts on approved loans
When Desktop Underwriter approves a loan, lenders no longer have to dig further into cards where the borrower is only an authorized user, unless DU asks for it.
What it means for you: If you're an authorized user on someone else's card, you may face fewer questions during underwriting.
Borrowers on an IRS payment plan can qualify without paying it off first
With an approved IRS installment agreement and no federal tax lien on the property, the monthly payment is counted as a debt instead of having to be paid off. You need a copy of the agreement and proof you're current.
What it means for you: Owing back taxes on a payment plan doesn't have to stop you from buying a home, as long as you have the right documents.
FHA will accept VantageScore 4.0 and FICO 10T credit scores starting Jan 1, 2027
FHA will accept two newer credit score models, VantageScore 4.0 and FICO Score 10T. The classic FICO score will still be accepted. FHA's minimum credit scores stay the same no matter which model a lender uses.
What it means for you: Starting in 2027, borrowers with thin or nontraditional credit may be scored differently and could find it easier to qualify.
New credit score models approved for mortgages, including VantageScore 4.0
FHFA announced that Fannie Mae and Freddie Mac are adopting newer credit score models: VantageScore 4.0, with FICO Score 10T to follow.
What it means for you: VantageScore 4.0 can count rent and other payment history, which may help people with thin credit files qualify.
Condo rules updated: small-project flexibility, stronger reserves and insurance standards
Fannie Mae expanded its streamlined review to condo projects with up to 10 units and removed the 50% investor-ownership cap for established projects. Minimum reserve contributions rise from 10% to 15% of the annual budget starting in 2027, and master policies can have a per-unit deductible of no more than $50,000.
What it means for you: Some small or investor-heavy condo buildings may be easier to finance. Check the building's reserves and insurance, and budget for your own unit policy.
Fannie Mae and Freddie Mac relax some homeowners insurance rules to lower costs
For single-family homes, Fannie Mae and Freddie Mac now accept actual cash value (ACV) coverage on the roof; the rest of the house still needs full replacement cost coverage. Condo buildings can also use ACV coverage on roofs.
What it means for you: Homeowners and condo buyers may have more insurance options and could pay less. An ACV roof policy pays less toward an older roof after a claim.
Simpler reserve rules and no minimum score cutoff for some second homes and rentals
Freddie Mac simplified its cash reserve rules and removed a minimum score requirement that applied to certain second-home and investment property loans in its automated system.
What it means for you: Some buyers of second homes or investment properties may find it easier to get approved for a conventional loan.
VA updates its list of state-specific closing fees veterans may be charged
VA keeps a list of extra fees it allows in certain states because of local customs or laws. VA published an updated list that lenders must use for loans closed on or after February 17, 2026.
What it means for you: Some closing costs depend on the state where the home is. Your lender must follow VA's current list, which helps limit what you pay at closing.
Forbearance and loan modification rules updated for struggling homeowners
Forbearance plans are now approved up to three months at a time, with a 12-month total unless Fannie Mae approves more. For disaster-affected homeowners, a past loan modification no longer disqualifies them from a Flex Modification.
What it means for you: If you're behind on payments, contact your servicer early. Disaster-affected homeowners have extra protections.
$2,500 HomeReady credit for very low-income first-time buyers extended into 2027
Fannie Mae extended its $2,500 credit for HomeReady purchase loans for borrowers with income at or below 50% of area median income when at least one borrower is a first-time buyer. It can go toward down payment or closing costs.
What it means for you: Eligible lower-income first-time buyers can get up to $2,500 toward cash to close.
2026 FHA loan limits rise: $541,287 floor, $1,249,125 ceiling for one-unit homes
FHA raised its maximum loan amounts for 2026. In lower-cost areas the one-unit limit is now $541,287, and in the highest-cost areas it's $1,249,125. Limits for 2–4 unit homes went up too.
What it means for you: Buyers in most areas can borrow more with an FHA loan in 2026. Each county has its own limit, so check yours before you shop.
2026 FHA reverse mortgage (HECM) limit rises to $1,249,125
For 2026, the highest home value FHA will count for a reverse mortgage (HECM) is $1,249,125, nationwide.
What it means for you: Homeowners 62 and older with higher-value homes may be able to access more of their equity through an FHA reverse mortgage.
Renovation loans expanded, including HomeStyle Refresh for smaller projects
HomeStyle Refresh lets borrowers finance renovations of up to 15% of the home's as-completed value, finished within six months. HomeStyle Renovation loans can now release up to 50% of renovation costs at closing for materials, permits and deposits.
What it means for you: It's easier to roll repairs or upgrades into one conventional mortgage (Fannie Mae), whether buying or refinancing.
2026 county loan limits rise, giving veterans with partial entitlement more room
VA uses the 2026 county loan limits set by FHFA. The standard one-unit limit rose to $832,750, and limits are higher in high-cost counties. Veterans with full entitlement still have no VA loan limit.
What it means for you: If you still have a VA loan or used your benefit before, you may be able to buy a more expensive home with no down payment in 2026. IRRRL refinances aren't affected by county limits.
2026 conforming loan limit rises to $832,750 in most of the country
FHFA raised the 2026 baseline conforming loan limit for a one-unit home to $832,750, up $26,250 from 2025. In higher-cost areas the ceiling is $1,249,125.
What it means for you: Buyers can borrow more with a conventional loan before they need a jumbo loan. These limits also set VA limits for veterans with partial entitlement.
Higher 2026 loan limits for 2- to 4-unit homes on conventional loans (Freddie Mac)
Outside high-cost areas, 2026 limits are $1,066,250 for 2 units, $1,288,800 for 3 units and $1,601,750 for 4 units.
What it means for you: If you're buying a duplex, triplex or fourplex, you can borrow more with a conventional loan in 2026.
Desktop Underwriter drops its 620 minimum credit score
Fannie Mae removed the 620 minimum credit score for loans run through Desktop Underwriter. DU now judges the whole application, including income, assets, debts and credit history, without a hard score cutoff.
What it means for you: A score under 620 no longer automatically rules you out for a conventional loan (Fannie Mae), but you still need a DU approval, and lenders can set their own minimums.
Rental income can now be verified automatically from tax returns
Freddie Mac added rental income to the income types its automated system can calculate, using tax returns or IRS transcripts.
What it means for you: Borrowers who earn rental income may have a faster application with less paperwork.
Rent from an accessory dwelling unit (ADU) can help you qualify
Borrowers can now count rental income from one accessory dwelling unit, like a backyard cottage or garage apartment, when the main house is their primary residence. ADU income can be no more than 30% of total qualifying income.
What it means for you: A home with a rentable ADU may help you qualify for a larger loan.
VA is collecting COVID partial claim balances when homes are sold or refinanced
Some veterans received pandemic relief through VA's COVID-19 partial claim or refund modification programs. That money is a second loan that must be repaid when the home is sold, refinanced or paid off. VA set up steps to collect balances that weren't paid at closing.
What it means for you: If you received COVID-era VA mortgage relief, plan for that balance to be paid off when you sell or refinance, and make sure it appears on your payoff figures.
FHA streamlines hardship help and sets new rules for assumptions
In most cases, servicers can now confirm a homeowner's hardship verbally instead of requiring documents. Anyone added to or assuming an FHA mortgage now needs a valid Social Security number or EIN. Partial claims are capped at 30% of the unpaid balance over the life of the loan.
What it means for you: Homeowners who fall behind may get help with less paperwork. Anyone taking over an FHA loan needs a valid SSN or EIN.
An energy-efficient home can now help you qualify for a VA loan
Lenders can now count expected utility savings from a home's energy efficiency report as a positive factor when they approve a VA loan. The report must be based on actual testing of the home and be no more than 12 months old at closing. Lenders still can't lower the standard maintenance and utility costs used in the calculation.
What it means for you: If a home has a confirmed energy rating showing lower utility bills, it may help your approval when your residual income is close to VA's minimum.
New law lets VA help veterans catch up on missed mortgage payments
This law lets VA pay a homeowner's past-due mortgage amount through a "partial claim." VA then holds a second lien on the home for that amount. In most cases it can be up to 25% of the unpaid loan balance, or up to 30% for borrowers who missed payments between March 1, 2020 and May 1, 2025.
What it means for you: Veterans who fall behind on a VA loan have another way to keep their home. The amount VA pays isn't forgiven; it becomes a lien you repay later.
FHA rolls back a stricter flood elevation rule for newly built homes
FHA rescinded a rule requiring newly built homes in flood zones to sit two feet above the 100-year flood level. A new home now qualifies with a FEMA letter removing it from the flood zone or an elevation certificate showing it's at or above the 100-year flood elevation.
What it means for you: More newly built homes in flood-prone areas can qualify for FHA financing.
FHA removes outdated appraisal requirements
Appraisers no longer have to estimate a home's remaining economic life, photo requirements now match industry standards, and extra comparable sales are no longer required in changing markets.
What it means for you: FHA appraisals should be simpler, which may help avoid delays and extra costs.
No more automatic damage inspections for FHA loans in disaster areas
FHA no longer requires a damage inspection on every home in a federally declared disaster area. Lenders now use reasonable judgment to decide whether an inspection or repairs are needed.
What it means for you: Closings in disaster-declared areas may move faster when a home wasn't damaged.
VA funding fee rates unchanged; current rates now set to run until June 2034
VA's funding fee rates haven't changed for 2026. First-time purchase loans cost 2.15% with less than 5% down, 1.5% with 5% down and 1.25% with 10% down. Later-use purchase loans cost 3.3% with less than 5% down, and IRRRLs cost 0.5%. A 2025 update extended the current rate table through June 9, 2034.
What it means for you: There's no fee increase to plan around. Veterans who receive VA disability compensation, and certain others, still pay no funding fee.
No changes match that search. Try a broader word, or ask Shirley’s team.
Last updated Oct 28, 2026. Official sources are checked every weekday, and new changes are added as they’re announced. Summaries are plain-English explanations of official announcements and may simplify the details. Lenders may add their own requirements, and some changes apply only to certain loans. Always confirm with your loan officer and the official source. This page is not affiliated with VA, HUD, Fannie Mae, Freddie Mac or FHFA.
