The Trump administration just announced a policy change that could revolutionize homebuying for millions of renters.
Starting immediately, rent and utility payments can now count toward mortgage qualification for loans sold to Fannie Mae and Freddie Mac.
This breakthrough policy addresses a fundamental unfairness in the current system.
Bill Pulte, director of the Federal Housing Finance Agency (FHFA), announced the change that allows Americans to use their rent payments to qualify for mortgages.
“Credit history will no longer just include credit cards and loans,” Pulte wrote on X. “This is HUGE.”
The technical change involves accepting VantageScore 4.0 credit scores instead of only the traditional FICO 10T model for government-sponsored enterprise loans.
VantageScore 4.0 includes factors that FICO traditionally ignores: on-time rent payments, utility payment history, telecom bill payments, and more comprehensive payment tracking.
This creates a fuller picture of financial responsibility that better reflects how people actually manage money.
With median home prices hitting $440,950 in June 2025, according to Realtor.com data, traditional credit scoring has locked out millions of potential buyers.
Many renters demonstrate financial responsibility by paying rent on time for years, managing utility bills consistently, handling monthly expenses responsibly, and saving for down payments despite high rent costs.
Yet traditional credit scoring ignored this payment history entirely.
This policy change means your rental payment history can now work for you instead of against you.
Shannon McGahn, executive vice president for the National Association of Real Estate Agents, called it “a major step toward a more accurate and equitable mortgage underwriting process.”
The policy creates immediate opportunities but also new complexities requiring expert guidance.
Qualified buyers might see improved credit scores through rent payment history, better loan terms and qualification odds, recognition of actual financial behavior, and faster approval processes for documented renters.
However, questions remain about how rental data gets verified and reported, which lenders will adopt VantageScore immediately, processing timelines for new scoring models, and documentation requirements for rental history.
This is where experienced real estate agents become essential.
The policy creates opportunities, but successful implementation requires professional navigation.
Top agents understand which lenders already use VantageScore models, can process rental payment documentation, offer competitive terms under new guidelines, and handle implementation smoothly.
Agents help you gather rental payment records and bank statements, utility payment histories, landlord verification letters, and alternative credit documentation.
Smart agents coordinate pre-approval timing with lender capabilities, documentation preparation before applications, market timing while benefits roll out, and backup financing if lenders delay adoption.
This policy affects markets differently across the country.
High-cost areas like Austin, Texas and Brentwood, California with many renters could see increased buyer activity.
Areas with lower rental rates might experience less dramatic impacts.
Your local agent understands these nuances and market-specific opportunities.
The policy has garnered strong support from real estate professionals.
Michael Sherman, senior vice president of Zillow Rentals, told Newsweek that “recognizing on-time rent payments in mortgage decisions is a meaningful step.”
Daryl Fairweather, chief economist for Redfin, noted this “breaks FICO’s monopoly on credit scores for conventional loans.”
The Mortgage Bankers Association sees potential for “added competition in the credit score space and reduced consumer costs” if implemented correctly.
Whether you’re currently renting or helping others buy, preparation maximizes opportunities.
Start documenting your payment history now:
Work with agents who understand VantageScore versus FICO differences, lender adoption timelines, documentation requirements, and market timing strategies.
This policy change requires agent education and adaptation.
Successful agents will identify VantageScore-ready lenders, understand new qualification processes, build relationships with progressive loan officers, and track implementation across lending institutions.
Top agents explain how rental history affects loan applications, documentation strategies that work, timing considerations for applications, and realistic expectations during rollout.
This policy could reshape homebuying demographics and market dynamics.
Expect more qualified buyers from long-term renters with strong payment histories, younger demographics previously shut out, urban markets with high rental populations, and households transitioning from renting to owning.
Increased qualified buyers might boost demand in starter home segments, create more competitive offering environments, drive innovation in loan products, and encourage lender competition.
Ready to leverage this policy change for homebuying success?
Begin comprehensive documentation of all rental payments made on time, utility and telecom payment histories, banking records showing payment patterns, and communication with current landlords.
Find agents who demonstrate:
When does this policy take effect?
The policy is effective immediately as of July 9, 2025, but lender implementation timelines vary.
Will all lenders use VantageScore immediately?
No, lenders have the option to use VantageScore 4.0 but aren’t required to switch immediately from FICO scoring.
How far back do rental payments count?
Specific lookback periods will depend on individual lender requirements and VantageScore data availability.
Do I need perfect rental payment history?
While consistent on-time payments help most, occasional late payments may not disqualify you entirely under the new model.
Can this help if I have limited credit history?
Yes, this is particularly beneficial for people with “thin files” who pay bills responsibly but lack traditional credit accounts.
How do I prove my rental payment history?
Bank statements, money order receipts, landlord letters, and rental payment apps can all serve as documentation.
Ready to leverage this groundbreaking policy change? Connect with knowledgeable agents who understand how to maximize your homebuying opportunities under the new rent-to-mortgage qualification rules.
Source: Newsweek - “Trump Administration Announces ‘Huge’ Change To Help New Homebuyers”
Richard Kastl has been a real estate investor since 2018 and is an entrepreneur with expertise as a web developer, digital marketer, copywriter, conversion optimizer, AI enthusiast, and overall talent stacker. He combines his technical skills with real estate knowledge to provide valuable insights and help people make informed decisions in their property journey.
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