Good Rent History Now Helps Get a Mortgage

Good renters can become homeowners.

Fannie Mae launched a system that incorporates rent payments in their mortgage credit evaluation process. This helps those with limited credit history but strong rent payment history. Hugh Frater, the CEO at Fannie Mae, says, “Many renters believe they will never be able to buy their own home because of insufficient credit. We can responsibly expand mortgage eligibility by including positive rent payment history. It is but one important step in correcting the housing inequities of the past, creating a more inclusive mortgage credit evaluation process going forward, and encouraging the housing system to develop new ways of safely assessing and determining mortgage eligibility in order to fairly serve all potential homeowners.”

Now, if you want to buy a home, consider these basic guidelines. No more than 40% of your net spendable income should go towards housing costs. This includes the mortgage, utilities, insurance, taxes, and any HOA fees. You’ll need a 20% down payment plus closing costs. Have 3-6 months of your living expenses in a savings account and plan for moving, repair and maintenance costs. What’s the economic outlook for your area? Is real estate holding its value? Do you plan on being there more than 5 years? Is your job stable? Do you have enough financial margin right now? Pray while seeking the wisdom and experience of others. Buying a home is a big decision. So know the pros and cons before you do so.

And if you’re overloaded with credit card debt, I recommend Christian Credit Counselors. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.