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Home » Knowledge Base » How Rental History Can Help You Qualify for a Mortgage
Renters who have paid on time month after month are finally getting the recognition they deserve when applying for a mortgage. Thanks to recent policy changes, your rent payment history can now count as a positive factor when qualifying for a home loan. If you’ve been reliable with rent but don’t have much credit history, this update could open the door to homeownership in ways that weren’t available before.
Mortgage giants Fannie Mae and Freddie Mac now allow lenders to factor in consistent rent payments when evaluating loan applications. This is especially important for first-time buyers or individuals with limited credit history. The Federal Housing Finance Agency (FHFA) has given the green light to alternative credit scoring models like VantageScore 4.0, which includes rent, utility, and telecom payments. This is a big step forward for making home financing more accessible.
Fannie Mae’s automated underwriting system, known as Desktop Underwriter (DU), now accepts positive rental history as part of its decision-making process. This feature looks for 12 consecutive months of rent payments that match the amount stated in your loan application. If the system verifies that you’ve been consistently paying rent on time, it can help strengthen your loan approval chances. Importantly, this program only rewards on-time payments, it does not penalize you for any missing data or late rent.
There are two main ways your rental history can be included in your mortgage application:
Through Your Credit Report
If you use a rent-reporting service that shares your payments with credit bureaus (like RentTrack or Rental Kharma), your rent will appear on your credit report and can be reviewed automatically by lenders.
Through Asset Verification
If your rent payments are not on your credit report, the lender can use a third-party verification system. With your consent, you’ll securely connect your bank account to a vendor system that tracks the last 12 months of rent payments. These reports are reviewed automatically and only used to confirm positive payment history.
If you’re applying for a mortgage and want your rent history included, here are the steps to take:
Check your credit report to see if your rent is already being reported.
If it’s not, ask your lender about using asset verification to confirm your rent payments.
Make sure you’ve been paying rent on time for at least 12 months at a minimum of $300 per month.
Be prepared to provide access to bank accounts that show your rent withdrawals.
This policy change isn’t just a small tweak, it’s a meaningful way to help renters become homeowners. For people who’ve demonstrated financial responsibility through consistent rent payments, this approach offers a clearer path to approval. You don’t need perfect credit to qualify, now your everyday financial habits can finally count in your favor.
If you’d like to learn how to make your rental history work for you, or need help connecting with lenders who use these updated systems, reach out today. We’re here to help guide you toward homeownership, step by step.
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