In a recent landmark decision, the Federal Housing Finance Agency (FHFA) announced that rent payments will now be factored into mortgage eligibility for specific loans. The move comes after years of pressure from housing advocates, tech innovators, and public figures like Bill Pulte, who has long argued that timely rent payments are a clear indicator of mortgage readiness.
Historically, rent payments have not been included in traditional mortgage underwriting models. This policy change is especially significant for renters without extensive credit histories, particularly younger generations and communities of color who have been disproportionately excluded from homeownership. Experts believe the impact could be far-reaching, but what does it mean for you?
247 Tempo pulls sources from the official FHFA press release, public statements by Bill Pulte, and reporting from ReadLion, Forbes, and HousingWire to bring you the answers. We’ll also go over expert analysis from Freddie Mac economists and mortgage tech firms. Let’s take a closer look at this groundbreaking decision now.
A Major Shift: Rent Payments Now Count Toward Mortgages
Announced in July 2025, the Federal Housing Finance Agency (FHFA) will now allow positive rent payment history to be factored into mortgage qualifications. This new policy change applies to mortgages exclusively backed by Fannie Mae and Freddie Mac. Homebuilder Bill Pulte praised the change on social media as a long-overdue correction to a system that overlooks responsible renters, having the potential to reshape how millions of Americans access homeownership.
Who This Could Help the Most
First-time homebuyers, particularly renters in high-cost cities, are expected to benefit the most from this shift. Many responsible renters have long been shut out of homeownership due to limited or non-traditional credit histories. However, by including rent payments in underwriting decisions, lenders can now recognize a history of on-time housing payments, potentially leading to a boost in loan approvals among millennials, Gen Z, and minority applicants.
The Role of Bill Pulte in Pushing Reform
Philanthropist and homebuilding executive Bill Pulte has been a vocal advocate for making homeownership more accessible. Pulte’s influence in housing circles and his platform with ‘Twitter Philanthropy’ has helped draw public attention to systemic housing issues, regardless of political standing. He called the rule change ‘a victory for working families across America.’
Why Rent History Has Been Ignored Until Now
Despite rent being the largest monthly expense for most Americans, it has rarely been included in credit scoring or mortgage eligibility. Traditional credit models focus solely on revolving debt and loan accounts, not rental transactions. This left millions of renters without full financial recognition, even if they never missed a payment.
How Fannie Mae and Freddie Mac Will Use This Data
Under the new guidelines, Fannie Mae and Freddie Mac will incorporate verified rent payments into automated underwriting systems. This means that lenders can now submit rental payment data directly or use third-party verifiers to confirm consistency. Borrowers won’t be penalized for missing data, only rewarded for positive history.
Will This Make Mortgages Easier to Get?
In theory, mortgages may be easier to get. However, while rent history will boost some borrowers’ profiles, it doesn’t replace income verification, down payment requirements, or other risk metrics. For borderline applicants who have had trouble being approved in the past, it could push them over the approval threshold.
The Credit Score Debate Heats Up Again
The fairness of traditional credit scores is up for debate again as this announcement comes to light. Critics of the FICO model argue it favors debt-based behaviors over real-life reliability. Rent-inclusive underwriting could help pave the way for more holistic financial assessments. Some hope this policy shift will expand to include utilities and other recurring payments next, but only time will tell.
Landlords and Property Managers Will Feel the Pressure
To benefit from this change, renters must have their payments documented through trackable systems. This could incentivize more landlords to modernize their rent collection platforms, reducing reliance on cash and informal payment structures. Industry groups warn this may also lead to tech adoption costs for smaller landlords, but more information is necessary at this point in time.
Could This Increase Demand for Starter Homes?
If more renters can qualify for mortgages, demand for entry-level homes may surge more than it already has been. This shift could ultimately create competition for smaller homes, especially in the $250k–$400k price range. Some analysts worry it may drive prices higher in already strained markets, leading to even more competition.
What It Means for Housing Equity
Rent inclusion in underwriting is seen as an overall win for housing equity. Minority communities, who often rent longer due to systemic barriers, stand to gain the most benefits. In fact, this move could narrow the racial wealth gap if implemented fairly and widely. Advocates are hopeful and say it’s one of the most impactful changes since federal down payment assistance programs.
Potential Risks Lenders Are Watching
Lenders will be cautious as they adjust to the new criteria, as there’s concern that lower-barrier approvals could invite risk in overheated housing markets. While rent history is predictive of housing reliability, it doesn’t shield against job loss or economic downturns. Regulators say ongoing monitoring and data analysis will be key as time progresses.
How It Might Affect Apartment Pricing
Some analysts speculate that, as more renters turn to homeownership, demand for rentals could actually cool off, potentially stabilizing or softening rents in highly competitive markets. However, in the short term, better-qualified renters could also become more desirable tenants. Property managers may start using rent payment history as a screening advantage, something to consider if you’re on the fence between buying or renting your next home.
What to Watch For in the Coming Year
2025 could see a rapid evolution in how mortgages are underwritten and who qualifies. FHFA will be closely watching outcomes from this change and adjusting its policy as needed. For the time being, renters should start documenting payments and exploring lender programs that recognize this history. If successful, this policy may become a permanent fixture in mortgage qualification.
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