What the New Credit Score Models Mean for Homebuyers

Starting in 2025, new credit scoring models will be used by lenders to determine the creditworthiness of potential homebuyers. Fannie Mae and Freddie Mac will mandate the adoption of the new FICO Score 10T and VantageScore 4.0 by the end of the year. For those interested in buying a home, these changes will impact their ability to purchase. The good news is that these scores aim to be more inclusive and to show a fuller picture than the old classic FICO scores did. 

These new scores have been noted to have better accuracy, and consider alternative credit data, as well as traditionally reported credit cards and car payments. For example, VantageScore 4.0 allows borrowers to add on-time payments for rent, utilities, and telecom bills. For those with limited debt or who prefer to use cash, this is a big advantage when seeking credit. 

The introduction of these new credit scoring models offers more opportunity and accessibility to credit for more individuals. This is particularly true for those with limited credit history or strong alternative credit data. Additionally, the VantageScore 4.0 only requires one month of credit history to generate a score, while FICO 10T still requires at least six months. 

Overall, the launch of these credit scores is a significant step towards hopefully allowing access to homeownership to more Americans. By considering alternative credit, these scores may provide lenders a truer picture of the ability of a potential homebuyer to pay their loan and extend credit to those previously unable to qualify.  

Enhance Your Home with a Health and Wellness Room

 Creating a health and wellness room in your home can be a positive step in prioritizing your well-being and fitness. A step beyond just room for an exercise bike, this room should include areas for reflection and calm. A place where you remove distractions and can focus on yourself. 

Any spare space can be transformed into a health and wellness room. A spare bedroom, converted garage, or loft are great options. The room should have plenty of natural light and be located away from high-traffic areas. 

Design the layout of your wellness room by functionality. Have an exercise area where you can place treadmills or weights. Add area rugs or yoga mats for floor exercises and meditation. Choose soothing colors for the room. A soft sage green or subtle sky blues add a soothing yet energizing ambiance. 

If space permits, add a comfortable chair where you can relax after a workout or when you need a break from your busy day. Use minimal décor and use natural materials as treatments. Add plants to incorporate the sense of nature and add curtains that allow light to filter in. 

Finally, invest in technology. A screen that allows you to watch movies or a fitness routine during high-intensity workouts can help you power through hard workouts. Meanwhile, a sound system that can play spa music or brown noise during meditation can help center your thoughts for a calming experience. 

By creating a dedicated health and wellness room in your home, you will find it easier to find time to focus on yourself. Creating a room that you love being in, is the best way to ensure you prioritize your health and incorporate these routines into your lifestyle.