Responsibility Counts. Reliability Counts. Now, for the first time Homebuyers, RENT COUNTS!
That’s the latest from Fannie Mae (Federal National Mortgage Association), & Freddie Mac (Federal Home Loan Mortgage Corporation), who, in conjunction with your favorite lender, are working hard to find ways to help make home ownership a reality for many first-time home buyers.
I often hear, “I always pay my Rent on time, why can’t I use that as proof that I can pay a mortgage on time?” Well, now you can!
If you understood the assignment and pay your rent on time each month, Fannie & Freddie believe you are likely to pay your mortgage consistently, too. Their innovative technology gives mortgage lenders the ability to consider your consecutive monthly rent payments in determining if you qualify when you apply for a home loan, and to top it off, have great first-time homebuyer programs that can help with your down payment and closing costs, plus reduce your interest rate!
Get recognized for your consecutive rent payments and qualify for Down payment assistance!
- Have you been renting for at least 12 months, paying more than $300 per month in rent from your bank account?
- Have you made 12 recurring rent payments in a row without missing a month?
- Are you a first-time Homebuyer purchasing a primary residence?
- Do you have a Credit Score of at least 620?
If you answered “Yes” to these questions, Congratulations! You are well on your way to getting prequalified to purchase a Home! If you have a limited credit history, this enhancement could help you qualify for a mortgage, whether your rent payments are reported to the credit bureaus or not.
Greg Riordan from Legacy Mutual Mortgage is very excited about this opportunity to provide an additional mitigation in credit for first-time homebuyers, as well as provide down payment assistance for those who may not otherwise qualify to purchase a home. “This allows for the creation of an additional trade line that gives extra advocacy for timeliness of good rental payment history”. To make that verification even easier, Greg also recommends using one of the larger banks (Chase, Wells Fargo, One AZ Credit Union, etc.) to pay your rent since their software is more compatible with the automated software used to gather the information needed in the automated underwriting systems.
Regardless of the bank you use, if you pay rent, and you’re ready to take the next step and purchase your very own home, NOW IS THE TIME! Home prices are a little more relaxed, Home inventory is up, and Lenders are ready.
To learn more about Fannie Mae and making your rent count, visit Fannie Mae.
If you’re looking for a great local lender to help you get prequalified to buy your very own home, call Greg Riordan with Legacy Mutual Mortgage (NMLS# 832841) at (928) 427-5156, or email [email protected].
If you’d like more information but don’t know where to start, or if you’re ready to get out there and start looking to find your very own home, call or text me, your Real Estate Concierge for ALL of your Real Estate needs at (928) 848-8830 or email [email protected].
