{"id":113716,"date":"2026-05-01T15:28:41","date_gmt":"2026-05-01T15:28:41","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/05\/01\/fannie-mae-and-freddie-mac-will-allow-rent-and-utility-payments-to-affect-credit-scores-making-rent-to-own-deals-for-tenants-more-viable-for-landlords\/"},"modified":"2026-05-01T15:29:39","modified_gmt":"2026-05-01T15:29:39","slug":"fannie-mae-and-freddie-mac-will-allow-rent-and-utility-payments-to-affect-credit-scores-making-rent-to-own-deals-for-tenants-more-viable-for-landlords","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/05\/01\/fannie-mae-and-freddie-mac-will-allow-rent-and-utility-payments-to-affect-credit-scores-making-rent-to-own-deals-for-tenants-more-viable-for-landlords\/","title":{"rendered":"Fannie Mae and Freddie Mac will allow rent and utility payments to affect credit scores, making rent-to-own deals for tenants more viable for landlords."},"content":{"rendered":"<p>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><default:path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/default:svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\"><\/span><span data-preserver-spaces=\"true\">    rent to own<\/span><span data-preserver-spaces=\"true\">    The strategy has proven to be a reliable way for investors to sell their properties at a profit to tenants. What is usually not so relied upon in these scenarios is the assurance that your tenants will improve their situation. <\/span><span data-preserver-spaces=\"true\">credit score<\/span><span data-preserver-spaces=\"true\">    Enough to qualify for a mortgage and actually be able to afford your rental.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Help for this cause has come from an unexpected source: government-sponsored institutions (GSEs) mortgage backers.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/real-estate-summary\/fannie-mae-and-freddie-mac-to-broaden-credit-assessments-with-new-payment-data\/\"><span data-preserver-spaces=\"true\">    Fannie Mae and Freddie Mac<\/span><\/a><span data-preserver-spaces=\"true\">Who are allowing rent and utility payments included in the credit report <\/span><span data-preserver-spaces=\"true\">to be factual<\/span><span data-preserver-spaces=\"true\">    In mortgage approval. <\/span><span data-preserver-spaces=\"true\">it<\/span><span data-preserver-spaces=\"true\">    This is especially beneficial for landlords, as they can now easily monitor these two essential things to ensure that tenants stay on track in their quest to become homeowners.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">New rules: When to start counting rent and utilities<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">What the advanced scoring model aims to include starting July 10<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.fhfa.gov\/news\/news-release\/homebuying-advances-into-new-era-of-credit-score-competition\"><span data-preserver-spaces=\"true\">    federal regulator<\/span><\/a><span data-preserver-spaces=\"true\">    It is described in a press release from the Federal Housing Finance Agency (FHFA) as a &#8220;new era of credit score competition.&#8221; new move <\/span><span data-preserver-spaces=\"true\">is intended<\/span><span data-preserver-spaces=\"true\">    Making mortgage approval easier for potential buyers to offset rising home prices over the years under the former credit score system.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to the FHFA, both Fannie and Freddie are moving forward with VantageScore 4.0 and FICO 10T models, which are specifically designed to include optional data, such as rental history, once reported to the major credit bureaus.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">FHFA calls this change <\/span><span data-preserver-spaces=\"true\">is intended<\/span><span data-preserver-spaces=\"true\">    Expanding access to home ownership for creditworthy borrowers <\/span><span data-preserver-spaces=\"true\">was ignored before<\/span><span data-preserver-spaces=\"true\">    By legacy systems that relied heavily on traditional credit cards and installment loans.<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">How do mortgage lenders access the data<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The new system will allow mortgage lenders to submit a borrower&#8217;s bank account data, including 12 consecutive months of rent payments. According to Freddie Mac CEO Michael DeVito, this could be a game-changer for potential borrowers with limited credit history.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;By incorporating a borrower&#8217;s responsible rent payment history into our automated underwriting system, we can help make home ownership possible for qualified tenants, especially in disadvantaged communities,&#8221; DeVito said in a statement.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.housingwire.com\/articles\/freddie-mac-to-include-on-time-rent-payments-into-underwriting\/\"><span data-preserver-spaces=\"true\">    housingwire<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Borrower&#8217;s access to banking <\/span><span data-preserver-spaces=\"true\">Information<\/span><span data-preserver-spaces=\"true\">    It is possible <\/span><span data-preserver-spaces=\"true\">End<\/span><span data-preserver-spaces=\"true\">    with <\/span><span data-preserver-spaces=\"true\">borrower&#8217;s<\/span><span data-preserver-spaces=\"true\">    Allowed through normal money transfer<\/span><span data-preserver-spaces=\"true\">\/Payment<\/span><span data-preserver-spaces=\"true\">    Apps like Zelle, Venmo, or PayPal.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Landlords are a part of the equation<\/span><\/h2>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/freddiemac.gcs-web.com\/news-releases\/news-release-details\/new-freddie-mac-initiative-helps-renters-build-credit\/\"><span data-preserver-spaces=\"true\">Freddie Mac announced in November 2021<\/span><\/a><span data-preserver-spaces=\"true\">    who wanted it <\/span><span data-preserver-spaces=\"true\">multi Family<\/span><span data-preserver-spaces=\"true\">    Landlords must report positive rental payments through the three major credit reporting bureaus <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/esusurent.com\"><span data-preserver-spaces=\"true\">Asusu Finance<\/span><\/a><span data-preserver-spaces=\"true\">l, enabling renters to become home owners.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Freddie Mac CEO Michael DeVito said at the time:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;Rent payments are often the largest monthly line item in a family&#8217;s budget, but paying your rent on time doesn&#8217;t show up on credit reports like mortgage payments. This puts the 44 million families who rent at a significant disadvantage when they look for financing for a home, a car or even an education. While there is still much to be done, this is a meaningful step toward addressing this age-old problem.&#8221;<\/span><\/em><\/p>\n<p><span data-preserver-spaces=\"true\">Sister GSE Fannie Mae first announced in August 2021 that lump sum rental payments would be <\/span><span data-preserver-spaces=\"true\">to be factual<\/span><span data-preserver-spaces=\"true\">    In its underwriting calculations. Bill Pulte, president of Fannie Mae and Freddie Mac, said<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/x.com\/pulte\/status\/1942591998625734723\"><span data-preserver-spaces=\"true\">    social media<\/span><\/a><span data-preserver-spaces=\"true\">    This change &#8220;expands loan access to millions of forgotten Americans \u2013 people who live in rural areas, renters who pay their rent on time every month \u2013 and (helps) reduce closing costs.&#8221;<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">role of landlords<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Rent and Utility Payments <\/span><span data-preserver-spaces=\"true\">Do not automatically factor<\/span><span data-preserver-spaces=\"true\">    In a tenant&#8217;s mortgage eligibility. Landlords or property managers typically require <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.businessinsider.com\/sc\/freddie-mac-helps-renters-build-credit-and-make-homeownership-accessible\"><span data-preserver-spaces=\"true\">Work with the fare-reporting service<\/span><\/a><span data-preserver-spaces=\"true\">    To transmit data to Equifax, Experian, or TransUnion. To this end, Freddie Mac&#8217;s multifamily division has launched a program that encourages this, including on-time rental payments for up to two years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For landlords of single-family properties who hope to sell their tenant-occupants, Freddie Mac has updated this<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/corr.pennymac.com\/announcements\/announcement-25-24#:~:text=LPA%20Assessment%20Update-,25%2D24:%20Freddie%20Mac:%20Rent%20Payment%20History%20Included%20in,history%20in%20the%20credit%20assessment.\"><span data-preserver-spaces=\"true\">    Loan Product Advisor (LPA)<\/span><\/a><span data-preserver-spaces=\"true\">    So that the lender can tell when the rent payment history of the borrower is <\/span><span data-preserver-spaces=\"true\">documented<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">it<\/span><span data-preserver-spaces=\"true\">    This typically happens in one of three ways: either identifying recurring rent transfers through property reports; By submitting leases, bank statements, or canceled checks; Or through a third party verification report with prior tenant approval.<\/span><\/p>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/corr.pennymac.com\/announcements\/announcement-25-24\"><span data-preserver-spaces=\"true\">pennymac<\/span><\/a><span data-preserver-spaces=\"true\">a major<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.bankrate.com\/mortgages\/correspondent-lending\/\"><span data-preserver-spaces=\"true\">    correspondent lender<\/span><\/a><span data-preserver-spaces=\"true\">That said, for some types of mortgages, a positive history of rent payments can upgrade the loan&#8217;s risk class from &#8220;caution&#8221; to &#8220;accept&#8221;, improving the borrower&#8217;s chances of approval. A required component for approval is timely payments for 12 consecutive months without any delays.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<h2><span data-preserver-spaces=\"true\">Fast Track First Time Home Buyers<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Among eligible tenants, landlords may want to mention Freddie Mac <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.fanniemae.com\/newsroom\/fannie-mae-news\/fannie-mae-introduces-new-underwriting-innovation-help-more-renters-become-homeowners\"><span data-preserver-spaces=\"true\">Desktop Underwriter (DU)<\/span><\/a><span data-preserver-spaces=\"true\">    System <\/span><span data-preserver-spaces=\"true\">to their tenants<\/span><span data-preserver-spaces=\"true\">Who <\/span><span data-preserver-spaces=\"true\">identifies<\/span><span data-preserver-spaces=\"true\">    At least 12 months of recurring bank statements totaling $300 or more and uses that information to approve first-time home buyers.<\/span><span data-preserver-spaces=\"true\">    The advantage is that it does not directly affect the consumer&#8217;s credit report or score.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Similarly, Fannie Mae&#8217;s <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.multihousingnews.com\/fannie-mae-pilots-positive-only-rent-payment-reporting-program\/\"><span data-preserver-spaces=\"true\">Multifamily Positive Rent Payment Reporting Pilot Program<\/span><\/a><span data-preserver-spaces=\"true\">    Allows landlords in multifamily zones to share positive rent payments with the credit bureaus.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">To be considered for a Fannie Mae mortgage under the current guidelines introduced in 2022, tenants must meet the following criteria:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Be a first time home buyer who purchases the original residence,<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Have a credit score of at least 620 (non-traditional credit is generally not allowed),<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Have been living on rent for at least 12 months,<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Pay rent of $300 or more per month, and<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Have bank accounts documenting the most recent 12 months of recurring rent payments.<\/span><\/li>\n<\/ul>\n<h2><span data-preserver-spaces=\"true\">Rent reporting can help potential home buyers<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Rent reporting makes a difference, according to early monitoring of the Fannie Mae rent reporting program, with renters seeing an average <\/span><span data-preserver-spaces=\"true\">of one<\/span><span data-preserver-spaces=\"true\">    Their credit score increases by 40 points after one payment <\/span><span data-preserver-spaces=\"true\">were involved in<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">    as of 2023 <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/reporting-rent-payments-boosts-credit-140055722.html?guccounter=1\"><span data-preserver-spaces=\"true\">bankrate<\/span><\/a><span data-preserver-spaces=\"true\">    According to the article, more than 23,000 tenants established credit through the program.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As of November 1st<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/select\/paying-rent-can-boost-your-credit-score-by-60-points\/\"><span data-preserver-spaces=\"true\">    cnbc<\/span><\/a><span data-preserver-spaces=\"true\">    In the article, TransUnion found that rental reporting can increase credit scores by an average of about 60 points. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The article explains that rental reporting services such as<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.boompay.app\/\"><span data-preserver-spaces=\"true\">    Boom<\/span><\/a><span data-preserver-spaces=\"true\">,<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.rentreporters.com\/\"><span data-preserver-spaces=\"true\">    hired reporter,<\/span><\/a><span data-preserver-spaces=\"true\">    And<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.rentalkharma.com\/\"><span data-preserver-spaces=\"true\">    fare kharma<\/span><\/a><span data-preserver-spaces=\"true\">    Will verify the tenant&#8217;s payment history and submit the information to the credit reporting bureaus. However, all of these companies charge for their services.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;It&#8217;s a logistical problem for the bureaus to get rental data from landlords, because there are so many landlords and many of them are very small,&#8221; says Jim Droske, president of Illinois Credit Services. \u201cSo, rent reporting companies have recently stepped in to fill the gap.\u201d<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">final thoughts<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Landlords will probably need to check with their tenants to see how their potential lender is qualifying them. a 2026 guide<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.backgroundchecksolutions.com\/does-paying-rent-build-credit-the-expert-guide-to-rent-reporting-in-2026\/\"><span data-preserver-spaces=\"true\">    background check solution<\/span><\/a><span data-preserver-spaces=\"true\">    Note that while FICO 8 <\/span><span data-preserver-spaces=\"true\">is widely used<\/span><span data-preserver-spaces=\"true\">    In many types of mortgage loans, this generally does not include rental data. However, FICO 9 and FICO 10 do.  <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Additionally, the extended rent and utility reporting option will not automatically make your tenants eligible for a mortgage if they are behind on credit card or other payments. That&#8217;s why a landlord&#8217;s first step in selecting tenants is so he can one day buy their property. <\/span><span data-preserver-spaces=\"true\">screen carefully<\/span><span data-preserver-spaces=\"true\">    Before renting.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For landlords with a large number of properties \u2013 some of which they are looking to sell \u2013 this may involve contacting long-term tenants with good payment histories to see if they are interested in buying.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The ideal candidate is not someone with black marks on their credit profile whom you are attempting to make a shining example of fiscal responsibility, but rather a tenant who <\/span><span data-preserver-spaces=\"true\">Only<\/span><span data-preserver-spaces=\"true\">    Not there. <\/span><em><span data-preserver-spaces=\"true\">Sufficient<\/span><\/em><span data-preserver-spaces=\"true\">    Requires credit history and more data to qualify.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article rent to own The strategy has proven to be a reliable way for investors to sell their properties at a profit to tenants. What is usually not so relied upon in these scenarios is the assurance that your tenants will improve their situation. credit score Enough to qualify for a mortgage and<\/p>\n","protected":false},"author":1,"featured_media":113717,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[5611,3129,947,27521,27522,13508,2654,12018,2055,10506,22019,27523,3947,22664,14149,17524],"class_list":{"0":"post-113716","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-meditation","8":"tag-affect","9":"tag-credit","10":"tag-deals","11":"tag-fannie","12":"tag-freddie","13":"tag-landlords","14":"tag-mac","15":"tag-mae","16":"tag-making","17":"tag-payments","18":"tag-rent","19":"tag-renttoown","20":"tag-scores","21":"tag-tenants","22":"tag-utility","23":"tag-viable"},"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/113716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=113716"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/113716\/revisions"}],"predecessor-version":[{"id":113718,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/113716\/revisions\/113718"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/113717"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=113716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=113716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=113716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}