Great news for renters looking to buy their first home! Beginning 9/18/2021, borrowers with a positive rent payment history may be able to have it considered in the overall Fannie Mae credit risk assessment, increasing the likelihood of an automated approval! Previously, a positive rental history was not considered when evaluating borrowers for approval. The following criteria are required to take advantage of this positive change:
• The borrower must be a first-time homebuyer
• The borrower must have been renting for at least 12 months
• The borrower’s rent payment must be $300 or more per month
• The mortgage loan must be a purchase transaction
• The property must be secured by a principal residence
• The borrower(s) must have a credit score
• The lender must obtain a VOA report with 12 months of bank statement data through an authorized DU validation service asset verification report vendor
*Eligibility criteria must be validated in accordance with Fannie Mae requirements.
If you have questions, give us a call today to learn more from an Homeowners Licensed Mortgage Professional near you.