Why This Matters for Residential Property Managers
This policy shift is a big win for property managers. By allowing rent payments to count toward mortgage qualification, it reinforces the value of on-time rent collection and positions property managers as key players in helping tenants build credit and transition to homeownership. It also provides a new incentive for renters to pay on time—knowing their rent history could help them buy a home in the future. This change highlights the strategic role residential property managers play in both housing stability and financial mobility.
New Federal Policy Could Be a Game-Changer for First-Time Buyers and Renters with Limited Credit History
A major shift is coming to the U.S. housing market—and it could make homeownership more accessible for millions of renters.
The Federal Housing Finance Agency (FHFA), under the direction of Bill Pulte, has announced that rent payments will now be considered as part of mortgage qualification. This marks a significant change in how creditworthiness is evaluated and could open the door to homeownership for many Americans previously sidelined by traditional credit scoring methods.
Until now, credit reports used for mortgage approval primarily focused on FICO scores built around credit card usage, loans, and payment history. But that excluded a large portion of responsible renters—especially younger adults—who pay their rent faithfully each month but lack a substantial credit profile.
That’s about to change.
A More Inclusive Approach to Credit
In a recent post on X (formerly Twitter), Pulte emphasized that credit history “will no longer just include credit cards and loans.” The FHFA is now directing government-sponsored entities like Fannie Mae and Freddie Mac to incorporate alternative data into credit evaluations—including rent payments and even cryptocurrency holdings.
Redfin’s Chief Economist Daryl Fairweather noted that this may usher in broader adoption of VantageScore, which already includes rent as a credit factor, over the traditional FICO model.
This isn’t entirely new territory. In 2022, the Federal Housing Administration (FHA) began allowing positive rent payment history to count toward qualification for FHA-backed mortgages. But now, that idea may expand to cover non-FHA loans and repeat buyers as well.
According to Pending CEO Noel Roberts, this could be a “game-changer” if rolled out across the broader mortgage market.
Addressing the Affordability Crisis
The timing couldn’t be more critical. The U.S. housing market continues to grapple with an affordability crisis. As of May 2025, a typical American household would need to spend nearly 45% of its income to purchase a median-priced home—well above the traditional 30% affordability benchmark.
“This move could help more buyers break into the market, especially those with thinner credit files,” said Joel Berner, senior economist at Realtor.com. “It removes a major barrier for renters who are otherwise financially responsible but overlooked by current credit systems.”
Equity, Wealth, and Long-Term Impact
Allowing rent payments to count toward mortgage qualification helps more than just market metrics—it promotes long-term financial stability.
“Monthly rent is often the biggest expense people pay and the closest indicator of whether they can handle a mortgage,” Berner added. “Recognizing that pattern of financial discipline is a step in the right direction.”
While there’s a small downside—those with poor rent histories but good credit scores may not benefit—experts believe the net positive impact will be significant.
Final Thoughts
This policy change acknowledges a reality many Americans face: rent is often a trial run for a mortgage. Giving renters credit for their consistent payments is not just fair—it’s smart policy.
And for aspiring homeowners, it’s one more reason to stay current on rent. Your monthly payments may soon help you unlock the door to your first home.
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