Fair Isaac Corporation (FICO) will launch its FICO Score 10 T for Federal Housing Administration (FHA) mortgage underwriting on January 1, 2027.
The updated model incorporates trended credit data and rental payment history to assess borrower behavior. This change specifically targets first-time buyers who maintain consistent rental records despite limited traditional credit histories.
Lenders expect the new scoring system to improve decision accuracy and expand homeownership access. FICO reports the 10 T model outperforms competing scores by more than 10% for FHA first-time homebuyer mortgages.
The FHA adoption represents a key component of a broader credit score modernization initiative.