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Paying Your Rent on Time Can Help You Get a Mortgage Thanks to Fannie and Freddie

14 Jul, 2025

Qualifying for a mortgage as a first-time home buyer may have just gotten a little easier thanks to a new policy change by Fannie Mae and Freddie Mac. “Effective immediately, Fannie and Freddie will allow mortgage lenders to use VantageScore credit ratings to assess borrower creditworthiness, in addition to or instead of traditional FICO scores,” said Federal Housing Finance Agency Director Bill Pulte said on Tuesday, July 8, 2025.

This is huge news for those individuals who may not have vehicle, student or other loans that help build up credit. Many people work hard and pay their rent and bills on time every month without any positive credit impact. The change will give many potential homebuyers the means to qualify for a loan.

According to Realtor.com senior economist Joel Berner, “This (change) should help folks with thinner credit files get qualified for mortgages, which will add to the pool of potential homebuyers and boost the market as a whole. People who haven’t taken out much debt on things like auto loans or credit cards will have the opportunity for their rental history to help them qualify for a loan.”

What is VantageScore

The thing that makes VantageScore stand out amongst other FICO scores is that it takes ren history into account if the payment information is shared with Equifax, Experian or TransUnion. Business Insider describes VantageScore as the following:

  • “VantageScore is a credit scoring model created by the main credit bureaus: Experian, Equifax, and TransUnion.
  • Like FICO, VantageScore ranges from 350 to 800 and grades consumers from poor to excellent.
  • VantageScore calculations heavily weigh payment history, length of credit history, and credit utilization.”

How Access to VantageScore Can Impact Real Estate

It’s easy to understand that the more buyers that hit the market, the better for the housing industry and economy as a whole. The change Fannie and Freddie have made will allow buyers who never thought they would qualify for a loan to now compete in the market. Lenders and real estate agents should share this news with potential buyers and encourage them to utilize their VantageScore in their mortgage qualification process.

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