Qualify more first-time homebuyers
It hasn’t always been possible to consider consistent rent payment data when looking to qualify first-time homebuyers for mortgages – but now, DU can use asset verification reports to help qualify more potential borrowers.
By confirming 12 months of positive rent payment data in the validation process, you can reach a wider audience of eligible borrowers – and turn more renters into homeowners.
How to use positive rent payments in DU
- Educate the borrower about what the asset verification process is, how it works, and get borrower consent to order a report.
- Enter the monthly rent payment amount in the loan application.
- Order an asset verification report with 12-months of asset data from an authorized report supplier. Enter the Reference ID in DU and ensure that the rent payment amount entered aligns with the withdrawal amount(s) in the report.
- Review the DU Findings messages to see if positive rent payment history has been considered.
- Identify opportunities where rent payment data could provide a more favorable recommendation by using the Fannie Mae Connect Report.
In their own words
*Customer comments are based on their own experiences with positive rent payment history and may not be typical.
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THINK BEYOND THE CREDIT SCORE
Create more access to lending for borrowers with no credit score.
We recognize positive rental payment history in DU as an immediate and practical benefit that allows us to focus on and bring attention to the first-time homebuyer market, particularly borrowers with limited credit histories. By incorporating a vital component of their lives, such as rental payments, into the credit evaluation process, we can now provide a path to homeownership to these borrowers.
By considering a first-time homebuyer’s positive rent payment history, we can flip them from an ‘ineligible’ to an ‘eligible’ and be able to say, ‘Yes, let’s find that home for you.
U.S. Bank is committed to housing equity, and allowing us to expand sustainable homeownership opportunities for underserved markets and consumers by factoring in rent payment history is an important and welcome change. We support Fannie Mae’s efforts and are excited to roll-out this impactful feature.
At Ruoff, our mission is to guide homebuyers at every step so they can achieve their goals and move into their homes with confidence. The Positive Rent Payment history program through Fannie Mae opens doors for first-time homebuyers to reach the goal of homeownership, which may not have been possible otherwise.