Do Mortgage Lenders Use FICO Score Or VantageScore?

Most lenders look at the mortgage‑specific FICO Score - usually the FICO Score 2 for a 30‑year fixed, the FICO Score 4 for an ARM, and the FICO Score 5 for FHA/VA loans - taken from a tri‑merge credit report; a few non‑traditional lenders may accept a VantageScore, but that is rare, and as the prior section on rate bands showed, a 740+ score typically secures the best interest rates, while scores in the 680‑739 range see noticeable rate increases.

• FICO Score 2/4/5 740 + (excellent) - most lenders offer the lowest rate, typically 0.25 % - 0.50 % lower than the next band; e.g., a 30‑yr fixed at 7.00 % versus 7.25 % for 720‑739.
• 720  -  739 (very good) - rates hover 0.125 % - 0.25 % below the 660‑679 band; a borrower might see 7.25 % versus 7.50 % for good credit.
• 660  -  679 (good) - most lenders add roughly 0.125 % - 0.25 % to the baseline; a typical offer is 7.50 % on a 30‑yr fixed.
• 620  -  639 (fair) - this band serves as the baseline; lenders often charge 0.25 % - 0.50 % more than the good‑credit rate, yielding around 8.00 % for the same loan.
• Below 620 (poor) - rates can climb another 0.5 % - 0.75 % or trigger rate caps; many borrowers end up with 8.75 %+ or face denial.

For a detailed breakdown, see industry analysis of mortgage rate differentials by credit score.

Lenders usually pull a tri‑merge credit report, but some opt for a single‑bureau pull depending on their contract or preferred scoring model.

A tri‑merge consolidates the complete files from Experian, Equifax and TransUnion into one report. It shows each bureau's credit history and any available scores, and the underwriter selects one bureau's FICO Score (typically the one the lender has a pricing agreement with). The three scores are not averaged; the chosen score alone drives the loan decision.

When a lender orders a single‑bureau pull, only one bureau's file is requested - most often the bureau that supplies the lender's preferred FICO version. The loan is evaluated solely on that bureau's score and data; the other two credit files are not examined.

Understanding whether your loan will be evaluated on a tri‑merge or a single‑bureau pull prepares you for the next step: seeing which FICO version (2, 4, or 5) will actually affect your mortgage outcome.

FICO Score 2, 4, or 5 - the three 'mortgage‑specific' models - are the versions most lenders rely on for a home‑loan decision. These scores are calculated from the same credit data you see on a regular FICO 8, but the weighting reflects underwriting criteria used by GSEs and many banks, so the number you get can differ from your consumer score.

Because each bureau (Equifax, Experian, TransUnion) runs its own version of the mortgage model, the score you're quoted depends on which report the lender pulls. That is why the next section, 'how your score is pulled - tri‑merge vs single bureau,' matters: it determines which of the three versions actually influences your interest rate and loan terms.

Your lender's adverse‑action notice tells you which bureau and which credit‑score model were used, and you can get a copy of the consumer report they pulled within the statutory window.

1. Read the adverse‑action disclosure.
   The notice must name the credit bureau (Equifax, Experian, or TransUnion) and state whether a FICO Score 2, 4, 5 or a VantageScore was applied. It also includes the date of the pull.
2. Request the pulled consumer report.
   Under the Fair Credit Reporting Act you have 60 days from the notice to ask for the report the lender received. The report shows the underlying credit file; the actual score often appears on a separate addendum.
3. Locate the score model on the addendum.
   Examine the addendum for a label such as 'FICO Score 5' or 'VantageScore 4.0.' If the first page does not list the model, ask the lender to provide the specific addendum they used.
4. Cross‑check the numbers.
   Compare the score in the addendum with the score you see on your own credit‑bureau portal for the same date. Matching numbers confirm you are looking at the exact file the lender evaluated.
5. If you were approved, still ask.
   Lenders are not required to give you the pulled worksheet when the loan is approved, but most will tell you which model they used if you request it.

For deeper FCRA guidance see Consumer Financial Protection Bureau - Adverse‑action notice requirements.

Raise the number most lenders see by tightening five key credit factors. These tweaks directly improve the FICO Score 2, 4, or 5 most lenders rely on.

• Pay down revolving balances to keep credit utilization below 30 % (ideally under 10 %).
• Eliminate missed or late payments from the past 12 months by bringing accounts current and requesting goodwill deletions.
• Keep old accounts open; a longer credit history boosts the mortgage‑specific FICO models.
• Dispute inaccurate items on your report promptly; correcting errors can add 20‑40 points.
• Avoid new hard inquiries for at least 30 days before the lender pulls your report; each inquiry can shave a few points.

Delay the mortgage application whenever a recent negative item - late payment, collection, or hard inquiry - keeps your mortgage‑specific FICO Score 2, 4, or 5 just below the next band. For example, moving from a 730 to a 740+ score can reduce the APR by roughly a quarter‑point, so waiting 30 days to 3 months while you dispute errors or pay down balances often yields a cheaper loan.

Most lenders schedule the official pull after you submit the full loan package, giving you a natural buffer to fix credit before the hard inquiry. Use a soft pre‑qualification pull to confirm eligibility, then clean up any issues and let the 30‑day reporting cycle settle. See how long credit repairs take for timing details. The next section explains how lenders actually pull the score - tri‑merge versus single‑bureau.

Most lenders pull a VantageScore only when their underwriting system allows an alternative to the mortgage‑specific FICO Score 2, 4, or 5.

This typically occurs with lenders that rely on automated platforms, serve non‑prime borrowers, or work with borrowers who have a limited credit history. In those cases the lender may accept whichever bureau score the platform returns, which is often a VantageScore.

Common situations where a lender might pull VantageScore

• The lender's underwriting software is configured to accept any bureau‑provided score, and the API returns VantageScore instead of a mortgage FICO.
• The lender is a fintech, credit union, or specialty lender that markets 'alternative credit' products and explicitly states they use VantageScore.
• The borrower is applying for a refinance with a thin or no‑credit file; the lender chooses VantageScore because it evaluates newer credit types (rent, utilities) more aggressively.
• The lender relies on a tri‑merge pull (see 'how your score is pulled - tri‑merge vs single bureau') and the merged report lists VantageScore as the primary score.
• The lender offers a non‑qualified loan program (e.g., low‑doc or stated‑income) where the exact score model is less critical, so they accept VantageScore for convenience.

The next section explains how to verify which score and report your lender actually used.

Check which bureau your lender will rely on, then pull the full credit reports from that bureau and the others showing a different number. Most lenders disclose the source (Experian, Equifax, or TransUnion) or use a tri‑merge file, so knowing the exact report lets you see where the gap originates.

Compare the reports line‑by‑line; any inaccurate address, missed payment, or outdated inquiry can cause a lower score. Dispute errors through the bureau's online portal, and meanwhile boost the lowest score by adding a small, on‑time installment loan or reducing credit‑card utilization. Remember that most mortgage decisions today use a FICO Score 2, 4, or 5, but a VantageScore may appear if the lender specifies it.

If you cannot resolve the discrepancy, ask the lender to pull a tri‑merge file or consider another lender that uses the higher‑scoring bureau. After corrections, wait a billing cycle and request a fresh pull to ensure the improved score is reflected. For detailed guidance on disputing credit report items, see Consumer Financial Protection Bureau advice.

Lenders still base a mortgage decision on a FICO Score - typically version 2, 4, or 5 - even if your credit file is thin or non‑existent.

A thin file means the bureau has fewer than six months of reported activity. Most lenders will pull the FICO 5 'alternative‑data' version, which incorporates rental, utility or telecom payments when those are reported to the bureaus. If the alternative‑data score is unavailable, the loan often moves to manual underwriting: the underwriter reviews your bank statements, rent‑payment history, employment stability and other assets to assign a risk rating.

Automated underwriting systems such as Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector still expect a FICO 2/4/5 input; they do not switch to VantageScore or use a proxy model.

*Example:* Jane has never used a credit card, but she pays rent and electricity on time every month. The bureau reports those payments, generating a FICO 5 Alternative‑Data score of 680. Her lender feeds that score into the AUS, which approves her loan with a competitive rate. If the alternative‑data score had not existed, the lender would have required a manual underwriting packet, still anchored to a FICO framework rather than VantageScore.

For more on how alternative‑data FICO scores work, see Equifax's guide to alternative data scoring.