Rent to Mortgage: On-Time Payments Could Make Millions of Adult Renters Eligible

Rent to Mortgage: On-Time Payments Could Make Millions of Adult Renters Eligible

By Priscilla Hammond, REALTOR® – HomeSmart | The House Whisperer

Date: November 10, 2025

Turning Rent into Opportunity

Millions of renters across America are on the verge of a financial breakthrough — one that could open the door to homeownership. Thanks to new rent-reporting initiatives, consistent on-time rent payments may soon help millions qualify for a mortgage.

For years, renters have made timely payments that went unnoticed by credit bureaus. But now, major credit scoring models and lending institutions are beginning to recognize rental payment history as proof of creditworthiness. This shift could make millions of adults mortgage-eligible for the first time.

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Why Rent Reporting Matters

Most renters spend between 30% to 40% of their income on housing, yet these payments traditionally haven’t counted toward their credit score. Now, with platforms and lenders embracing rent reporting, consistent renters can show strong payment reliability — the same kind that mortgage lenders look for.

By building credit through rent, tenants can:

• Boost FICO® and VantageScore® scores faster

• Qualify for lower interest rates

• Transition from renting to owning with less financial friction

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How It Works

Rent-reporting services partner with landlords or property managers to verify monthly payments and send that data to credit bureaus. Over time, this builds a renter’s credit profile — just like a credit card or auto loan.

For example:

• A renter paying $1,500 on time for 24 months could see a credit score increase of 40–100 points.

• That same renter could move from being “unqualified” to mortgage-ready in under a year.

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The Bigger Picture

According to housing analysts, more than 45 million adults in the U.S. could become eligible for a home loan by 2026 through consistent rent reporting. For communities where homeownership rates have lagged, this could transform generational wealth and stability.

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Real Estate Tip from Priscilla Hammond

If you’re renting and dreaming of owning a home — start tracking and reporting your rent payments now. Ask your landlord if they use a rent-reporting platform or enroll yourself through a verified provider.

When you’re ready to make that move from “renter” to “homeowner,” call me — I’ll help you make the transition seamless.

📞 Priscilla Hammond, REALTOR® – HomeSmart
🏡 The House Whisperer – I get it done!
📱 678-378-9837