How Making Timely Rental Payments Can Help You Become A Homeowner

While timely rental payments have traditionally served to keep a roof over one’s head and keep one in a landlord’s good graces, it now also can help you to go from renter to homeowner. As of September 18, 2021, new guidelines from Fannie Mae allow potential homebuyers to use their most recent 12 months of on-time rental payments as a consideration when they seek preapproval for a home. Although this is not the only consideration, this change can help enhance an applicant’s eligibility, as it reflects an applicant’s ability to make payments on time, a core factor when it comes to the repayment of mortgage loans. One’s ability to repay a considerable amount of money in a timely fashion is paramount to mortgage loan professionals and the lending institution itself.

Keep those on-time rental payments coming and your path to homeownership could be easier.

P.S. The best part of the new guidelines: on-time rental payments are only considered if it helps bolster the applicant’s creditworthiness.