Paying your rent on time could help you buy a home

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Paying your rent on time could help you buy a home
  • Do you pay your rent on time? You may qualify to buy a home in the United States according to the FHFA.
  • Now you can add your rent payment to your credit history, which could make you qualify for a home loan.
  • This is an opportunity for many families to have their first property if they don’t have other ways to build a credit score in the country.

The Federal Housing Finance Agency (FHFA) decided to give an opportunity to thousands of people who have been punctual in paying their rent and they have added this as a requirement to qualify for a mortgage.

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The FHFA reported earlier this month that the Federal National Mortgage Association, better known as Fannie Mae, will consider rent payment history in its risk assessment processes. That is, the system will be updated and from now on will include the history of the monthly payment of the property in which the people who apply for the home loan reside.

“For many families, rent is the biggest monthly expense. There is absolutely no reason why timely payment of monthly housing expenses should not be included in underwriting calculations, ”said FHFA Acting Director Sandra L. Thompson in a release shared on the official website of the institution.

pay the rent

As of September 18, Fannie Mae will apply this new measure and “will include in its Desktop Underwriter program a good record of rent payment for the year prior to the application,” according to Sun Sentinel. The agency also indicated through its portal that, with the consent of the loan applicant, the periodic rent payments will be automatically identified in their bank history in order to provide a more inclusive credit evaluation.

Who are eligible?

Those who wish to apply in this system must:

    • Be buying your first home
    • Buying the house as your primary residence
    • Pay monthly rent of $ 300 and up
    • Authorize the agency to verify your account statement for the last 12 months

Buy house interest rates United States mortgage

According to research by Fannie mae, “Lenders who take into account the constant rental payment history of first-time home buyers makes a significant difference between applicants who qualify and those who do not qualify for a mortgage. In a recent sample of mortgage applicants who had not owned a home in the past three years and did not receive a favorable recommendation through Desktop Underwriter, 17% could have received an Approved / Eligible recommendation if their history had been considered. rent payment ”.