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To help increase homeownership opportunities for borrowers, Fannie Mae is enhancing its underwriting guideline to consider a borrower’s positive rent payment history in the credit risk assessment.
Effective immediately, when the borrower is currently paying rent of $300 or more, and a 12-month Verification of Asset (VOA) report is obtained by the lender, Fannie Mae, a government agency, will improve the credit risk profile of a borrower helping them to qualify for a mortgage which they might not have otherwise.
The borrower and the property must meet the following guideline:
- The borrower must be a first-time homebuyer,
- the borrower must have been renting for at least 12 months,
- the borrower’s rent payment must be $300 or more per month,
- the mortgage loan must be a purchase transaction,
- the property must be secured by a principal residence,
- the borrower(s) must have a credit score, and
- the lender must obtain a VOA report with 12 months of bank statement data through an authorized DU validation service asset verification report vendor.
Not all mortgage companies have the ability to obtain a VOA report. In fact, most companies do not have the technology to verify assets automatically which is required for this guideline enhancement. At InstaMortgage, we provide you the ability to verify assets automatically and instantly when you apply for a mortgage with us.
So, contact us and one of our loan officers can guide you on how a positive rental history can help you realize the homeownership dream.
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