Freddie Mac to consider on-time rent payments into loan purchase decisions
Posted By Scott Vansant @ Jul 5th 2022 12:08pm
Freddie Mac operates in the US secondary mortgage market, buying loans (mostly from smaller banks) that meet certain standards from approved lenders. Those lenders are then, in turn, able to provide more loans to qualified borrowers. Freddie Mac then pools the mortgages it buys into securities, which they sell to investors.
Beginning July 10, 2022, Freddie Mac will consider on-time rent payments for first-time homebuyers as part of its loan purchase decisions.
This initiative of factoring in on-time rent payments into loan purchase decisions could help many renters, including some who may lack the credit history or credit score, to qualify for a mortgage.
For more details please visit Freddie Mac
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