How Your Rent Payments Can Help You Qualify for a Mortgage

Blog posted On July 21, 2022

One of the biggest obstacles for first-time home buyers is their limited credit history. Credit history is a big factor in the mortgage application process. However, we’re now offering an alternative solution for first-time buyers. With positive rent payment history, we can include your completed rent payments in the application process, which may help boost your overall credit assessment and allow you to qualify for a mortgage more easily.

Buyers who are eligible for positive rent history consideration must:

• Be a first-time home buyer
• Be purchasing a primary residence
• Have a minimum credit score of 620
• Have been renting for at least 12 months
• Have been paying rent that’s at least $300 per month
• Have bank accounts that document the past 12 months of rent payments

How to get started

1. Let us know that you want to opt in for our digital rent-payment verification
2. We will then verify your rent payment history automatically through bank statements
3. We will verify that you’ve made recurring rent payments for the past 12 months (this can include any rent payments made via check, Venmo, Paypal, etc.)
4. Make sure to fill in the current monthly cost of rent on your mortgage application

How to prepare

If you’re not sure if you’re ready to buy or you’re still saving for a down payment, there are a few ways you can prepare in the meantime.

• Keep paying your rent consistently and on time
• Make sure your rent payments are showing up on your bank statements
• Check out www.homefundit.com for a quicker way to save for your down payment!

If you’re interested in our positive rent payment history, let us know. We can explain the digital process in more depth when you’re ready!

Sources: Fannie Mae