Are You Ready for FHA's New Credit Score Models? Moving to TOTAL 5.0
On September 10, 2026, the Federal Housing Administration (FHA) issued FHA INFO 2026-21, setting January 1, 2027 as the implementation date for alternative credit score models in FHA-insured mortgage underwriting.
FHA also released a Preparedness Guide for mortgagees. This follows FHA INFO 2026-11, issued earlier this year, in which FHA confirmed it would add VantageScore 4.0 (V4) and FICO Score 10T (10T) as eligible models alongside Classic FICO.
What Is Changing?
FHA is expanding the credit score models lenders can use. Specifically:
V4 and 10T will become eligible credit score models. Classic FICO remains eligible.
FHA's Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard will be updated to Version 5.0 for case numbers assigned on or after January 1, 2027. The update applies to Title II forward mortgages only.
TOTAL Version 5.0 will allow the alternative score models to be included in TOTAL decisions.
What the Preparedness Resources Cover
FHA released several resources with the announcement. They include:
The FHA Alternative Credit Scores Preparedness Guide, which answers transition questions and provides adoption guidance for mortgagees and industry partners.
TOTAL Developer's Guide Release 5.0, which gives Automated Underwriting System (AUS) vendors the software mapping and technical specifications needed to integrate TOTAL Version 5.0.
Updated FAQs in the FHA Resource Center Knowledge Base, which FHA will publish when TOTAL Version 5.0 is released on January 1, 2027.
FHA has indicated the Preparedness Guide is a planning tool, not a policy change. Until FHA formally publishes policy updates, mortgagees should continue following HUD Handbook 4000.1.
What This Means for Mortgage Lenders
FHA is placing the readiness burden on lenders and their vendors. Before January 1, 2027:
Contact your credit reporting and technology partners to confirm they can deliver V4 and 10T scores and support TOTAL Version 5.0.
Confirm your LOS and AUS vendors are working from Developer's Guide Release 5.0.
Review the Preparedness Guide with your underwriting, operations, and compliance teams.
Plan for pipeline loans with case numbers assigned on or after January 1, 2027, since those loans will run through the updated Scorecard.
Hold off on revising written underwriting policies until FHA publishes formal policy updates.
Virtual Office Hours
FHA will host daily office hours from 2:30 to 3:30 PM ET for questions about the new models. Key details:
Sessions run November 16-20, 2026, and January 11-15, 2027.
Questions can be submitted in advance to FHA_SFH_Events@hud.gov with the subject line "Alternative Credit Score Models."
FHA will send attendance instructions closer to the event dates.
Bottom Line
With implementation about three months away, most of the systems work falls on lenders and their vendors. Start vendor conversations now, use the Preparedness Guide to build your implementation plan, and bring open questions to the November office hours while there is still time to act on the answers.
For more information, contact troy@garrishorn.com.