Most Lenders Will Now Consider On-Time Rent Payments

 

 

Most Lenders Will Now Consider On-Time Rent Payments

More mortgage applicants will find it easier to get approved now that Freddie

Mac joined Fannie Mae in making on-time rent payments a lending consideration.

Fannie Mae and Freddie Mac back more than half of all U.S. mortgages, and Freddie just followed Fannie in announcing

a system to allow on-time rent payments to be a consideration when applicants apply for a home loan.

In August, Fannie Mae announced its own system for including credit scores in mortgage lending decisions.

The new policy went into effect Sept. 18.

 

Regardless of the system, the rent-check option is expected to open homeownership to more people, notably those in protected classes under the Fair Housing Act.