FHA Credit Scores & VA Partial Claim: 2026 Changes

Two government loan programs that matter a lot in Kern County — FHA and VA — are in the middle of meaningful changes this year. Neither one made front-page news, but both affect who can qualify and what happens if a borrower hits trouble later.

Here is what changed, in plain language, and what it means if you are buying or already own a home in Bakersfield.

FHA is adding new credit scoring models

The Federal Housing Administration has confirmed its intention to make VantageScore 4.0 and FICO Score 10T eligible credit scoring models for FHA-insured mortgage underwriting, in addition to Classic FICO. HUD Secretary Scott Turner first announced the direction on April 22, 2026.

For decades, FHA underwriting has run on Classic FICO — a scoring model built on older data conventions. The newer models work differently in a couple of ways that matter:

• Trended data. FICO 10T looks at how your balances have moved over time, not just where they sit today. A borrower who consistently pays balances down looks different from one who carries the same balance month after month, even if their current utilization is identical.
• Alternative data. VantageScore 4.0 can incorporate rent, utility, and telecom payment history when it appears in credit files — relevant for borrowers with thin traditional credit.

What this does not mean: it does not mean approval standards are loosening, and it does not mean anyone is guaranteed to qualify. It means FHA is widening the set of tools used to measure credit. Some borrowers will score better under the new models; some will score worse. Every FHA loan still goes through full underwriting, income and asset documentation, and property review.

What to do about it: if you have been told your credit file is too thin for a mortgage, it is worth a fresh conversation. Implementation timing runs through lenders and their systems, so ask where your specific lender stands rather than assuming the models are live everywhere on day one.

The VA's new Partial Claim program is open

On the servicing side, the VA opened its new Partial Claim program for submissions on June 15, 2026. Servicers have until November 28, 2026 to fully implement it in their systems.

A partial claim is a loss-mitigation tool for a veteran who has fallen behind on payments. In broad terms, it lets missed payments be moved into a separate subordinate obligation rather than requiring the borrower to come up with a lump sum or restructure the entire loan. The first mortgage keeps its existing rate and term; the arrearage gets handled separately.

Why this matters in Kern County: we have a substantial veteran population, and VA financing is a significant share of local purchase activity. Until now, VA's retention toolkit had a gap for borrowers who could resume regular payments but could not cure a delinquency all at once — particularly borrowers holding low-rate loans from prior years, where a full modification would have meant giving up that rate.

If you are a veteran currently behind on a VA-backed mortgage, contact your servicer directly and ask specifically whether the partial claim option is available on your loan yet. Because the implementation window runs to late November, availability will vary by servicer.

2026 loan limits worth knowing

While we are on government programs, the 2026 limits:

• FHA one-unit ceiling, standard (low-cost) areas: $541,287
• FHA one-unit ceiling, high-cost areas: $1,249,125
• Conforming and VA one-unit limit, most of the U.S.: $832,750

Kern County falls in the standard tier, which puts the FHA one-unit ceiling well above the local median sale price. Practically speaking, FHA financing reaches essentially the entire mainstream Bakersfield price range — and conventional conforming reaches considerably higher. Always confirm the current figure for your county and property type at application, since limits are set annually.

Note that VA loans do not impose a maximum loan amount for eligible borrowers with full entitlement; the conforming figure matters mainly for entitlement calculations and down payment requirements in specific situations. Your loan officer can walk through how your entitlement applies.

Practical takeaways for Bakersfield borrowers

• If you were declined for thin credit, revisit it. New scoring models may read your file differently. That is a reason to re-apply and be underwritten, not a promise of a different outcome.
• Build the history the new models reward. Consistently paying balances down — not just paying on time — is what trended data captures.
• Veterans behind on payments: call your servicer now. Ask about the partial claim by name, and ask when it will be available on your loan if it is not yet.
• Do not assume FHA is your only option. Conventional loans with 3% down, VA for eligible veterans, and USDA in rural Kern all compete with FHA depending on your credit, income, and the property. The right program is the one that fits your file.
• Confirm limits at application. Loan limits change annually and vary by county and unit count.

The bottom line

FHA is modernizing how it reads credit, and VA has added a real safety net for veterans who fall behind. Neither change lowers the bar for approval — every loan still requires full underwriting — but both expand the paths available to borrowers who previously had fewer.

Questions about your loan options? Contact Omar. Or use our mortgage calculators to see what a given price and down payment look like.

My Mortgage Company, Inc. — Bakersfield, CA. Company NMLS #2269164, DRE #02168831. Omar L. Ortiz, DRE #02056548 / NMLS #951384. All loans subject to credit approval, income and asset verification, and property underwriting. Program guidelines, loan limits, and terms are subject to change without notice. This article is general information, not financial, legal, or tax advice; consult your own advisors.