Rental Payment History

Leveraging Rental Payment History to Approve More First-Time Homebuyers

As housing affordability remains constrained, lenders have looked to new approaches to help first-time homebuyers achieve the American Dream. The ability to repay is the dominant determining factor in a mortgage approval. A mortgage underwriter’s ability to know a prospective homeowner’s history handling a rent payment can be a strong indicator of a borrower’s ability to sustain a monthly mortgage payment. Read our recommendations below to increase lender adoption of positive rent history and make homeownership more accessible to those who have consistently paid rent for years.