What this means for your plan
For FHA case numbers assigned on or after January 1, 2027, lenders may submit one or more supported credit-score model types: Classic FICO, FICO 10T and VantageScore 4.0. The same submitted model types must be used for every borrower on the transaction. When more than one model type is submitted, the lender first selects a score within each model type, then uses the lowest selected score as that borrower’s Borrower-Level Score. The transaction’s Minimum Decision Credit Score is the lowest Borrower-Level Score among borrowers with scores.
HUD says FHA’s existing minimum score thresholds remain unchanged. The transaction is not eligible for FHA insurance when the Minimum Decision Credit Score is below 500; a score from 500 through 579 limits the maximum loan-to-value ratio to 90%, while 580 or above remains eligible for maximum FHA financing subject to the other program rules. This is a new model-selection method, not a promise that a newer score will be higher or that a borrower will qualify.
The effective date is tied to the FHA case-number assignment, not simply the date a buyer starts shopping or obtains a preapproval. Seattle-area buyers comparing FHA with conventional financing should ask the lender which score model was used, whether the January 1 methodology applies, and what other income, debt, asset, property and lender conditions remain. A score alone does not determine approval or the better written offer.
Your next step
If an FHA application may receive its case number near January 1, ask the lender which score model or models it will submit, how it calculated the Borrower-Level Score, and whether timing changes the applicable methodology. Compare complete written FHA and conventional options using the same purchase assumptions.
Related guidance
Educational information, not a rate quote or loan approval. Confirm current program and lender requirements for your transaction.