Make your rent
work for you!

Good rental history can help first-time homebuyers qualify for a home loan.

Renting is almost a rite of passage, and for many first-time homebuyers, when they are ready to make the leap from renter to owner, a limited credit history sometimes can be a roadblock, especially considering how much of an integral element credit history is in determining a borrower's ability to repay their loan. And fewer than five percent of renters have their rent payments recorded on their credit reports, putting many first-time homebuyers at a disadvantage.

For underrepresented populations, this barrier can be even greater. The National Housing Survey® led by Fannie Mae "found that Black consumers identify insufficient credit score or credit history as their single biggest obstacle to getting a mortgage – and do so at a much higher rate than white consumers."

Shockingly, Fannie Mae found in a sample of mortgage applicants, 17% could have been approved had their rent history been considered.

Your rent counts! Paying your rent on time can help you qualify for a mortgage. If you're a first-time homebuyer, you never missed a rent payment, and you've been renting for over a year, we can use this rental history to help see if you qualify for a home loan. You'll still need at least a 620 credit score or better, but if you have limited credit history, and a great rental history, this could be your path to homeownership!

With so many loan programs featuring down payment assistance, home inventory increasing, and sellers even slashing their prices in some markets, now is still a great time to buy. Contact a Castle & Cooke Mortgage loan officer to review your options and get started.

Sources:
https://www.fanniemae.com/research-and-insights/perspectives/helping-renters-unlock-door-homeownership
https://www.fanniemae.com/newsroom/fannie-mae-news/fannie-mae-introduces-new-underwriting-innovation-help-more-renters-become-homeowners
https://money.com/rent-payments-mortgage-qualify-fannie-mae/