Fannie Mae’s new rent reporting program could improve homeownership opportunities for tenants. (Stock)
Fannie Mae recently announced a new partnership that will allow tenants to report their payment history to credit bureaus. It could help build credit profiles and even make homeownership more affordable for many renters, the mortgage giant said.
With Fannie Mae’s new program, rent payments are reported to credit bureaus and will help improve a participant’s credit score if made on time. The program is available to those whose multifamily property is financed by Fannie Mae.
Renters can see if they are eligible by reach out to one of the three partners selected by Fannie Mae for this program: Esusu, Jetty and Rent Dynamics. Borrowers can compare the three companies and their offers, such as additional rent payment loans at 0% interest, and submit an application to the company of their choice.
If you’re looking to improve your credit score, paying off your debt can give it a boost. A personal loan is a way to help you pay off your debts while lowering your interest rate. You can visit Credible to compare personal loan options and find your rate without affecting your credit score.
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Benefits of the Positive Payment Reporting Program
Fannie Mae explained that its Positive Payment Reporting program has several benefits.
“Rent is the largest recurring monthly expense that many households pay,” Fannie Mae said. “Having on-time payments reported to credit bureaus can help prepare renters to buy a home or get a better rate on a loan.”
This program will open the door to home ownership for many tenants who will be able to increase their credit. It will also give them access to lower interest rates when they take out a mortgage or other credit products since their credit scores will be higher.
Even for those who don’t plan to buy a home, a higher credit score can help reduce future rent deposits because it’s determined by the tenant’s credit score, Fannie Mae said.
If you’re considering buying a home, comparing several mortgage lenders can help you get the best interest rate for you. Visit Credible to compare multiple lenders at once and find the one that best suits your needs.
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Buyers looking for homes in these more affordable areas
The number of people looking to move to another metro hit a record high by 33.9% in July and August, according to a recent Redfin report. This has been driven by those living in coastal towns with expensive job centers looking to relocate to a more affordable location.
Miami was the most popular destination for migrants, and San Francisco saw the largest exodus of residents. Other popular destinations include Sacramento, CA, San Diego, CA, Las Vegas, Nevada, and Tampa, Florida.
“Although home prices in many popular destinations have risen significantly throughout the pandemic, they are still more affordable than where buyers are coming from,” the Redfin report said. “The typical Las Vegas home, for example, sold for $416,000 in August, half the $845,000 median in Los Angeles, the number one origin of people moving in.”
If you’re looking to move to a more affordable city, consider using an online marketplace like Credible to find the best mortgage rates for you. You can also contact Credible to speak to a mortgage expert and get all your questions answered.
Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
