Paying your rent on time can help you buy a home

A couple of months ago, government-sponsored entity Fannie Mae allowed lenders to consider rental payment history in their decision to approve a loan. Now, Freddie Mac is joining their lead. The government agency is incentivizing landlords to report on-time rent payments to the three major credit bureaus—Equifax, Experian, and TransUnion. Why is this important? Through the new program, homebuyer credit scores can see a positive boost with up to 24 months of on-time rental payments. Now, True Property Management will be offering this as a service through their new Resident Benefit Package. As a part of the package, True will do positive credit reporting on behalf of their tenants to help boost their credit so, when the time comes, they may qualify to buy a home with a good interest rate. Roughly 17% of rejected mortgage applicants could have been approved if their rental payment history was considered. But so far, less than 10% of renters see their rental history reflected in their credit report. Moves like this can help make homeownership more accessible, especially to first-time buyers. To learn more about the Resident Benefit Package and how renting through True Property Management can help you with your financial and homeownership goals, check out the program …

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