Derek McGowan explains how credit bureaus and mortgage agencies like Fannie Mae and Freddie Mac now factor in 12 months of on-time rental payments when evaluating loan applications. This positive payment history can help borrowers qualify for home loans.
12 months ("last 12 months").
Fannie Mae and Freddie Mac.
Here's how your rent payments can help you qualify for your next home loan. It used to always be that even if you made your rent on time, it didn't mean that you would use that to qualify for your home loan. Fortunately, the credit bureaus have come around and Fannie Mae Freddie Mac are now recognizing positive rental history for the last 12 months as a positive factor to help you qualify for your new home. So us as a lender, we can check the box saying, yes, this person has made on time monthly rent payments for the last 12 months. We do have to document it and that could be a big boost towards getting an approval on your home loan.
