On Tuesday, July 8th, the Federal Housing Finance Agency (FHFA) introduced a new policy aimed at expanding mortgage access by allowing on-time rent payments to count toward credit evaluations.
FHFA Director Bill Pulte announced the update on X, explaining that mortgage lenders can now consider a borrower’s rent history when assessing their creditworthiness. The change is part of a broader move to recognize alternative credit data beyond conventional metrics such as credit cards and loans.
The new policy also permits the use of VantageScore 4.0, a credit model that includes rental and utility payment history and does not require a minimum of six months of credit activity. VantageScore estimates that the inclusion of its model could benefit approximately five million potential homebuyers.
Pulte highlighted the disparity that the policy seeks to address, noting that applicants who reliably pay high monthly rents are often denied mortgages for lower amounts. “That’s absurd,” he wrote, referencing renters who pay $2,200 monthly but struggle to qualify for a $1,750 mortgage.
The FHFA oversees Fannie Mae and Freddie Mac, the entities responsible for backing the majority of U.S. home loans. By approving VantageScore 4.0, the agency aims to foster greater competition in the credit scoring industry and reduce borrowing barriers, goals aligned with the Trump administration’s housing agenda.
The policy is one element of the Trump administration’s wider effort to overhaul the housing finance system and expand homeownership opportunities for individuals with limited or unconventional credit backgrounds.
