As of July 8, 2025, the Federal Housing Finance Agency (FHFA) now permits mortgage lenders to use VantageScore 4.0 in conjunction with the FICO 10T model when underwriting loans sold to Fannie Mae and Freddie Mac through participating mortgage lenders. This policy shift opens the door for broader competition in credit scoring and could lower costs for homebuyers by giving lenders more options beyond the “classic” FICO score.
Why VantageScore 4.0 Matters for Renters
- Alternative Data Integration: VantageScore 4.0 incorporates non-traditional data, such as rent, utility, and telecom payments, into its scoring algorithm. This can be especially beneficial for “thin-file” consumers who lack extensive credit histories.
- Lower Barriers to Scoring: Unlike classic FICO models, which require at least six months of credit history, VantageScore 4.0 can generate a score with just one month of history, making it more accessible to renters and recent credit entrants.
Making Rent Payments Count
- Fannie Mae’s “Make Rent Count” Program
This Fannie Mae initiative lets partner lenders consider 12 consecutive months of on-time rent payments, even if not reported on your credit file, when evaluating mortgage applications. Key details:
- Eligibility: Rent of at least $300/month for 12 consecutive months.
- Verification: Payments reported on credit bureaus or digitally via bank statement access.
- Positive-Only: Late or missed payments aren’t counted against you.
- Impact: Over 10,500 homebuyers qualified using this program through April 2025, including more than 1,000 in just a six-week period from mid-March to the end of April 2025.
- Reporting Rent to Credit Bureaus Builds Payment History
Experian Boost now allows you to add your on-time rent payments to your Experian credit report, alongside utilities and streaming bills, potentially raising your credit score in minutes. To qualify, you must link the account you use to pay rent and verify at least three payments within six months, with one in the past three months.
- Leveraging Private Rent-Reporting Services
Third-party platforms like Self, Boom, RentReporters, Esusu, TurboTenant, PayYourRent, and Bilt can report your rent payments directly to Equifax, Experian, and TransUnion. When comparing services, consider:
- Fees: Free options vs. $5–10 +/month.
- Bureau Coverage: Ideally, all three.
- Back-Reporting: Ability to report up to 24 months of past payments.
- Landlord Participation: Some require landlord opt-in, others work directly with your bank account.
Tenants typically see a tradeline on their credit report within about 30 days of enrollment.
Steps to Leverage Rent in Your Homebuying Journey
- Ask Your Lender*
- Confirm they accept VantageScore 4.0 and participate in rent-count programs like Make Rent Count or rent-reporting.
- Verify Your Rent History
- Provide proof via credit-bureau reports or digital bank-statement access for 12 consecutive payments.
- Enroll in Rent-Reporting Solutions
- If your landlord doesn’t report rent, compare free vs. paid services, bureau coverage, and back-reporting capabilities.
- Monitor Your Scores
- Check both your VantageScore 4.0 and FICO scores regularly to see the impact of added rent data.
By centering your strategy on the expanded use of VantageScore 4.0, and coupling it with Fannie Mae’s Make Rent Count and rent-reporting services, you turn every on-time rent payment into a building block on the path to homeownership.
Why Act Now
In recent years, the average age of first-time homebuyers has climbed to 38 years, three years older than in 2023 and up from the late 20s in the 1980s. At the same time, 30-year fixed mortgage rates have hovered around 6.8–7.0%, putting younger buyers on the sidelines and pushing the entry age even higher. Yet the long-term payoff of owning versus renting remains compelling: homeowners today hold about 40 times more wealth than renters, thanks largely to steady equity gains over time. By choosing to buy now, rather than continuing to rent, you redirect your monthly housing payment into building your net worth instead of covering someone else’s mortgage.
Our team is here to help you navigate the pre-approval process, secure a mortgage that fits your financial picture, and begin accumulating equity in your own home today, so you can start growing your wealth, not your landlord’s.
*Homestead is currently not an active participant in these programs, but we are looking into it.