07/23/2025
As of July 8, 2025, rent payment history can now be considered in mortgage applications!
What’s Changed?
🏠 The Federal Housing Finance Agency (FHFA) now allows mortgage lenders to use VantageScore 4.0-alongside FICO 10T- when underwriting loans backed by Fannie Mae/Freddie Mac. This shift gives official recognition to payment data beyond traditional credit lines, like rent, utility, and telecom payments.
🏠 VantageScore 4.0 explicitly incorporates rent payment history into its scoring model.
Who Benefits and How It Works:
🚪Lenders using VantageScore 4.0 can count your on-time rent (if it’s reported to credit bureaus) toward your credit score.
🚪Additionally, Fannie Mae and Freddie Mac let lenders evaluate rent history through a 12-month bank statement verification, even if those payments aren’t on your credit report.
🚪To qualify, you need at least 12 consecutive on-time rent payments, each $300 or more. To grant the lender secure access to your bank transactions or have such rent data reported to bureaus.
Why It Matters:
🪟 This is a major boost for renters with limited/no credit history—on-time rent payments become valid proof of financial responsibility.
🪟 According to Fannie Mae, users in their pilot saw an average 40-point credit score increase, improving their mortgage eligibility.
But…!!!
💰 FICO scores remain dominant; most mortgage lenders still rely primarily on them.
💰 Lenders need to choose to use VantageScore 4.0 or rent-verified bank statements—they aren’t automatically applied.
💰 Lenders must also procedurally verify rent via bank records or credit tradelines; it’s not automatic just because your rent is reported.
In summary: rent can now count—but mostly if you and your lender take the right steps. If you’ve got a clean rent history, this could really move the needle. All the best!
