Does Rental History Affect Buying a House | Go Mortgage

For many renters, monthly rent is the biggest expense they face. Does rental history affect buying a house?

With recent changes in the mortgage industry, the answer is starting to shift in your favor. 

Here’s what you need to know about how your rental history can play a role in your homebuying journey.

Does rental history matter to mortgage lenders?

Traditionally, rental history had little to no effect on your ability to get a mortgage. 

Lenders focused almost exclusively on:

• Credit scores
• Income documentation
• Debt-to-income ratios
• Savings for a down payment

If you had a good record of paying rent on time, it usually wasn’t something lenders could see unless you provided it directly, and even then, it wasn’t always considered.

But that changed in 2021: Fannie Mae introduced an initiative allowing lenders to factor in positive rent payment history when evaluating mortgage applications. 

By analyzing your bank statements, automated systems can detect consistent monthly rent payments and include that information as a credit-positive signal.

This is a game-changer for many renters. It means your timely rent payments can now help you qualify for a mortgage, especially if your credit score is lower, but you’ve proven financial responsibility as a tenant.

Does an eviction affect your mortgage application?

Evictions don’t appear directly on your credit report, but they can still impact your application. 

If you were evicted due to unpaid rent and that debt was sent to collections, the collection account will show up on your credit report and may hurt your score. That said, older collection accounts (especially those more than seven years old) may no longer be visible.

An eviction itself won’t automatically disqualify you, but the circumstances around it might influence your lender’s decision. 

If you’re worried about a past eviction, a strong overall application with stable income, good credit, and other positive financial indicators can help you move forward.

Can you qualify for a mortgage without rental history?

Absolutely. While positive rental history can support your application, it’s not a requirement. Many people purchase their first homes after living with family or in situations where they didn’t pay traditional rent.

Even with Fannie Mae’s new rental history program, participation is optional. If you choose not to share your rent history—or don’t have any to share—your application won’t be penalized. 

The focus remains on your overall creditworthiness and financial stability.

How to build a positive rental history

If you plan to buy a home in the near future, building a strong rental history can help improve your mortgage eligibility. 

Here are some practical ways to ensure your rent record works in your favor:

• Pay rent on time every month: Consistency is key. Late payments may not necessarily hurt your mortgage application, but on-time payments can help you stand out.
• Use a verifiable payment method: Paying by check, bank transfer, or a platform that documents your payments makes it easier for lenders to verify your history.
• Check if your rent payments are being reported: Services like RentTrack or Experian RentBureau allow you to report your own rent payments to credit bureaus. This can help improve your credit profile.
• Keep open communication with your landlord: If you’re ever in financial trouble, talk to your landlord about a payment plan or other arrangements. Avoiding collections protects your credit.

How to document rental history for a mortgage application

If you want your rental history to help your mortgage case, make sure it’s easy for lenders to verify:

• Save digital or paper copies of lease agreements and rent receipts.
• Use consistent payment methods like bank transfers or rent payment apps that provide records.
• Request a rental ledger from your landlord or property manager detailing your payment history.
• Sign up for a rent-reporting service that shares payment data with credit bureaus.

Providing this documentation can strengthen your mortgage application, especially if you have a limited credit history.

Does your landlord matter?

It can. If you rent from a large property management company, there’s a higher chance your payments are being tracked in a formal system. Individual landlords may not report rent activity unless you use a third-party service. 

Before applying for a mortgage, ask if your landlord or property management service reports rent payments to credit bureaus.

How does Fannie Mae include rental history?

Fannie Mae uses an automated underwriting system to assess mortgage applications. 

When you authorize access to your bank account, the system scans for recurring rent payments. These must be consistent in amount and timing to be considered reliable.

Importantly, this only works in your favor. If you’ve missed a few rent payments, those negatives won’t count against you. 

But if your history shows regular, on-time payments, it can strengthen your mortgage application, especially if you’re a first-time homebuyer.

Renting vs. buying: What your financial history reveals

Renting and buying may feel different, but from a financial perspective, both require consistent, timely payments. 

Showing a history of reliable rent payments can indicate that you’ll treat mortgage payments similarly. While rent payments didn’t always contribute to credit scores or lending decisions in the past, industry experts predict a shift in how financial responsibility is measured.

More underwriters and lenders are starting to look beyond traditional credit models, especially for first-time buyers. This makes rental history increasingly relevant as part of your overall financial story.

Expert tips from GO Mortgage advisors

• If your landlord doesn’t report rent payments, use a rent reporting service to build credit.
• Use consistent payment methods so your history is easy to verify.
• Ask your mortgage advisor if Fannie Mae’s rental history tool can be used in your application.

These small actions can add up to big opportunities when it’s time to apply for a home loan.

What really matters when buying a house?

Your rental history can help, but it’s not the whole picture. 

Lenders look at a combination of:

• Credit score and credit history
• Employment and income stability
• Debt-to-income ratio
• Savings and assets for down payment and closing costs
• Payment history on major bills and loans

A good rental history is just one piece of the puzzle. If you’re consistent, responsible, and ready to take the next step, that foundation can make a big difference.

Ready to explore your mortgage options? Reach out to our home loan specialists today and take the first step toward homeownership.