Do Mortgage Lenders Use FICO (Fair Isaac) Score 8?

Most big‑ticket lenders now pull FICO Score 8 for conventional mortgage applications. Below are the lenders that typically check FICO 8:

• Wells Fargo - uses FICO 8 for conventional, but reverts to older versions for FHA/VA loans (see the next section on alternatives).
• JPMorgan Chase - runs FICO 8 on its primary mortgage platform; some legacy programs still reference FICO 2 or 4.
• Bank of America - employs FICO 8 for most new home‑purchase and refinance files.
• Rocket Mortgage (formerly Quicken Loans) - relies on FICO 8 for its digital underwriting engine.
• U.S. Bank Mortgage - checks FICO 8 for conventional loans; government‑backed products may use a different version.

These institutions represent the majority of borrowers who will see their FICO 8 score reflected in the loan decision.

The quickest way to find which FICO version your lender uses is to look for the model name in the loan documents or ask the loan officer directly.

1. Check the loan estimate or pre‑approval letter; many lenders list the exact credit model (e.g., 'FICO Score 8,' 'FICO 9,' or 'VantageScore 3.0') in the 'Credit Score Used' line.
2. Call the loan officer or mortgage processor and ask, 'Which FICO version will you pull for this loan?' Some lenders will confirm the model over the phone.
3. Log into the lender's online portal (Ellie Mae Encompass, Blend, etc.); many platforms display the score model next to the score value.
4. Request the credit report they received from the credit bureau; the report header shows the model and version.
5. For FHA, VA, or USDA loans, consult the lender's HUD‑approved handbook or ask the underwriter; typically they still rely on a FICO version they have approved, often FICO 8 but occasionally an older model.

If the lender says they use a different score, see the next section on when lenders ignore FICO 8 and use alternatives.

Many lenders still rely on older credit models or proprietary scores instead of FICO 8, typically because their underwriting platforms haven't been upgraded or the loan program explicitly allows alternatives.

• Older FICO versions (e.g., FICO 4, 5, 9, 10) - still embedded in legacy systems, often used by smaller banks and credit unions.
• VantageScore 3.0 or 4.0 - accepted by some non‑conforming investors and by lenders that partner with Experian or TransUnion for a unified score.
• Lender‑specific internal risk models - custom algorithms that weight payment history, debt‑to‑income, and other factors differently from any public score.
• Government‑loan agency models - FHA, VA, and USDA guidelines sometimes reference older FICO scores, so lenders may pull those for eligibility checks (see the later section on FICO 8 versus older scores for FHA, VA, USDA loans).

FICO Score 8 is not the default for most FHA, VA, or USDA loans; many lenders still use older versions such as FICO 02, 04 or 05 because the government‑backed guidelines were written around those models, although a growing number of lenders have begun to accept FICO 8 where their internal policies allow it.

Compared with the older scores, FICO 8 penalizes recent missed payments less harshly and discounts isolated medical collections, while older versions treat any delinquency or medical bill as a larger negative. Consequently, a borrower with a 620 FICO 8 may qualify for a USDA loan that would require at least a 640 FICO 04, but a VA lender that still runs the 04 model could deem the same 620 score insufficient. FHA credit‑score eligibility guidelines illustrate these divergent thresholds.

FICO Score 8 determines the pricing tier a lender assigns to your loan, so it directly shapes the APR you receive. Many lenders adjust rates by roughly 0.125 % to 0.25 % for every 50‑point jump in your score; for example, a borrower moving from a 660 to a 710 typically sees a small but measurable rate drop.

The tiering applies mainly to conventional loans; some government‑backed programs use their own tables, such as the FHA Fair Credit Scoring guidelines, which can produce a different rate impact. Knowing your FICO 8 lets you anticipate these changes before you request a quote, a point explored further in the next section on how the score helps you qualify.

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• Conventional loans often accept FICO Score 8 as the primary credit metric, so many borrowers with a 620+ score can qualify where older versions would have required a higher threshold. FICO Score 8 overview
• FHA mortgages ignore medical collections in FICO 8, allowing some applicants to meet the 580 minimum even if older scores flag those debts. FHA loan credit requirements
• VA loans use FICO 8's trended payment data, so veterans with a few isolated late payments often qualify with scores around 620+. VA loan eligibility criteria
• USDA rural‑development loans apply the newer revolving‑credit utilization rules in FICO 8, letting borderline borrowers reach the typical 640 guideline. USDA loan program details
• Refinancing high‑balance mortgages benefits from FICO 8's lower weighting of recent inquiries, keeping many borrowers' scores high enough to lock in better rates. Mortgage refinance guidelines

FICO Score 8 can hurt you in four common situations.

• Thin credit history - when you have fewer than six months of activity, FICO 8 penalizes the lack of data, many lenders treat the score as higher risk.
• High credit‑card balances - if you carry utilization above 30 %, FICO 8 weights that heavily, often pushing your mortgage rate up.
• Multiple recent hard inquiries - each new inquiry still drags the score down, so a flurry of applications can knock points off and stall approval.
• Recent major derogatory marks - foreclosures, short sales or bankruptcies that occurred within the past two years remain fully counted, unlike older versions that began to discount them.

These pitfalls set the stage for the next section, where we examine exactly how FICO 8 treats collections and medical debt.

FICO Score 8 treats collection accounts with a 'pay‑or‑no‑pay' approach: any collection that is marked paid is removed from the score altogether, and many lenders therefore see no hit from settled debts.

Medical debt receives extra leniency; unpaid medical collections that are at least 180 days old are weighted far lighter than non‑medical collections, and if the medical bill is paid after that 180‑day window the item is also excluded. (FICO Score 8 overview)

Many mortgage lenders that rely on FICO 8 will therefore discount a $2,000 medical collection older than six months, often shaving only a handful of points off a borrower's rating, whereas a similar non‑medical collection could drop the score by 30 points or more.

Some lenders still run older FICO versions, so in those cases the medical collection may be treated like any other delinquency. Typically, borrowers who can get a lender to use FICO 8 will see a much smaller impact from past medical collections on their mortgage eligibility.

Yes, an authorized‑user tradeline can lift your FICO Score 8, but the boost is modest and not universal. Many credit bureaus count the account in the same way they count a primary holder, so if the card is at least six months old, has a low utilization rate and no recent delinquencies, FICO 8 typically adds a few points.

Some mortgage lenders, however, flag authorized‑user activity and may discount the value of that account during underwriting, especially for conventional loans; government‑backed programs often follow the same rule. Therefore, while an authorized‑user line can improve the numeric score you see on your credit report, you should verify whether your lender will factor it into the loan decision before relying on it as a primary strategy.

Disputing a mistake that drags down your FICO score or CreditWise score starts with a copy of the underlying credit report, then a focused, documented challenge to the data provider.

1. Pull the full report from each bureau that appears in the error (Equifax, Experian, TransUnion). CreditWise already shows a VantageScore‑based view, but you still need the official file to dispute.
2. Highlight the line item that is wrong - a late payment that never happened, a balance that's misstated, or an account that isn't yours.
3. File a dispute online, by phone, or by certified mail with the bureau that reported the error. Use the bureau's portal (e.g., TransUnion dispute center) and attach a clear copy of any proof: bank statements, payment confirmations, or a letter from the creditor.
4. The bureau must investigate within 30 days. Track the case number and watch for a 'verified' or 'removed' status in the online portal.
5. Once the error is corrected, log back into CreditWise to see the updated CreditWise score; request an updated FICO score from your lender or a paid provider to confirm the change.
6. If the dispute is denied and you still believe the entry is inaccurate, add a statement of dispute to your credit file and consider escalating to the Consumer Financial Protection Bureau for further review.

Proceed to the next section on when to order an official FICO report for deeper insight.

Most conventional mortgage lenders still pull older FICO versions, typically FICO 04, 02 or 01, while a few non‑conforming programs may accept FICO 8. Here are five fast actions to boost that score.

1. Reduce revolving balances below 30 % of each limit; the impact shows in the next reporting cycle (often 30 days).
2. Dispute any inaccurate items on your credit report; corrections can raise the score within a month.
3. Keep existing credit‑card accounts open, even if you stop using them; longer histories generally lift FICO 8.
4. Add a small, on‑time installment loan (such as a credit‑builder) if you have a thin file; a few months of payments improve mix.
5. Join a responsible authorized‑user account; the added positive history can swing the score quickly.