Some proposed changes in credit scoring may have a big impact on how many Americans will qualify for home loans.

Fair Isaac Corporation (FICO), the most widely used credit score, recently announced that the latest version of its score, FICO09, would no longer weigh medical debts as heavily as it has in previous scoring models. The newer FICO09 scores will be available this fall, and will also ignore any collections that have been paid off, whereas previously they factored paid and unpaid collections equally.With medical debt accounting for about half of all unpaid collections on consumers' credit reports, this change could potentially make the difference between being denied for a home loan or receiving the coveted "pre-qualification" to become a homeowner. Most lenders today still want to see a minimum credit score of 640, but some loan programs are available for applicants with as low as a 600 credit score.

The consumer whose credit file has been tarnished by unpaid debts that went to a collection agency will most likely see a greater increase in their score with the change that ignores any collections that have been paid off. FICO credit scores are based on a 300 to 850 point scale and are generated by the three major credit bureaus: Equifax, Experian and TransUnion.For aspiring homeowners to see any benefit though, lenders will need to adopt the new scoring model. And, probably more importantly to see a large-scale change, Freddie Mae and Freddie Mac will need to adopt this new scoring model. But, if you have been working on raising your credit score, some relief is on the way.

Lauren Bunting is a licensed realtor with Bunting Realty, Inc. serving Worcester and Wicomico counties.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.