Fannie Mae, a mortgage financing association, announced it will be accepting on-time rent payments to be reported as positive payment history. Fannie Me believes this will help increase credit for first-time home buyers. If you are a responsible renter and are looking to purchase your first home but do not have good enough credit, this program could help you reach your goal. There are some criteria that you must meet to be eligible for this feature:
- Must be a first-time homebuyer purchasing a primary residence.
- Must have a current credit score of at least 620.
- Have been renting for at least 12 months.
- Must be paying $300 or more for rent per month.
- Must have a bank account that documents the most recent 12 months of recurring rent payments.
Although this is targeted towards tenants, this could benefit landlords as well. This feature can help encourage tenants to pay rent on time along with taking better care of rental properties.
Take a look at Fannie Mae’s website for more details on how to increase your credit by paying rent on-time. Check out the “FAQ” link on the top right for more specific questions.
https://www.fanniemae.com/positive-rent-payments