Positive Rent Payments
Together, let’s help more renters become homeowners
Positive rent payment history is live in Desktop Underwriter
If someone is paying rent consistently, we believe it’s a good indicator that they likely could pay their mortgage consistently, too. However, very few landlords report tenants’ rent payment history to credit bureaus, so most renters are unable to benefit from their history of regular rent payments when applying for a mortgage.
Fannie Mae is working to change this. Desktop Underwriter® (DU®) now uses asset report data to consider a borrower’s 12-month positive rent payment history. We believe this innovation will help more first-time homebuyers qualify for a mortgage. Let’s work together to remove barriers to sustainable homeownership.
Already using asset reports?
How to use positive rent payments in DU
- Enter the monthly rent payment amount in the DU loan application.
- Order a verification of asset (VOA) report that contains 12-months of data from an authorized report supplier during the application process.
- Provide the report Reference ID in DU and ensure that the rent payment amount entered in DU aligns with the withdrawal amount(s) in the VOA report.
- Leverage DU messages to assist you.
Pro Tip: DU will issue a message if ordering an asset report could improve the underwriting recommendation. So, if you didn’t order a VOA report and your casefile did not receive an Approve/Eligible recommendation, it’s easy to order a report and resubmit to DU.
Key resources
TSP readiness
Reach out to your technology service provider (TSP) to make sure you can obtain 12 months of data.
First step in helping qualify more homebuyers
In a recent sample of applicants who had not owned a home in the past three years and did not receive a favorable recommendation through Desktop Underwriter, 17% could have received an Approve/ Eligible recommendation if their rent payment history had been considered.