Chances are, you're familiar with FICO, a company that's provided credit scores since 1989. Now FICO may have competition from another credit source: VantageScore. This was created as an alternative to FICO scoring and is the result of a joint venture involving major credit bureaus Experian, Equifax and TransUnion.
Last year, the Federal Housing Finance Agency (FHFA) authorized the use of the VantageScore 4.0 credit model for qualifying applicants for conforming loans. This decision may help lenders and borrowers save an average of $111 per finalized mortgage.
While savings are always welcome, VantageScore is also expected to help millions of potential borrowers, as it may expand access to mortgage financing to applicants with limited or non-traditional credit histories.
If you're planning to buy or refinance a home soon, I can provide you with the latest credit scoring updates and answer any questions you may have.
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