Renting Now? Your On-Time Rent Could Help You Get a Mortgage

If you’ve been paying rent on time for years and dreaming of owning a home, here’s some good news: your rent payments can now count toward your credit score when you apply for a mortgage.

In 2026, federal housing officials approved two newer credit scores for home loans: VantageScore 4.0 and FICO 10T. The older score most lenders have used for decades doesn’t count rent. Both new scores can, as long as your on-time payments show up on your credit report.

That’s a big deal for renters. Rent is often your biggest bill each month. Now, paying it on time can help show lenders you’re ready for a mortgage.

The new scores can also give you credit for paying down debt over time, and they can score more people who are new to credit. For many first-time buyers, that puts owning a home more within reach.

Here’s what changed, how it could help you, and what you can do to get ready.

What Changed?

First, a quick definition. Your mortgage credit score is the score a lender uses when you apply for a home loan. It may be different from the free score you see in your bank or credit card app.

For more than 25 years, most home loans sold to Fannie Mae and Freddie Mac used one score, called Classic FICO. (Fannie Mae and Freddie Mac are companies that buy a large share of U.S. home loans from lenders.)

Now lenders have two newer options:

• VantageScore 4.0
• FICO Score 10T

Here’s where things stand:

• Now – Any lender that sells its loans to Fannie Mae or Freddie Mac can use VantageScore 4.0. This started in September 2026.
• Now – A VantageScore is priced the same as a FICO score with the same number. So if your VantageScore is higher, you may pay less.
• January 1, 2027 – Lenders that make FHA loans can start using both new scores. (FHA loans are backed by the government and often allow smaller down payments. Many first-time buyers use them.)
• Later – FICO 10T for loans sold to Fannie Mae and Freddie Mac. No start date has been set yet.

Lenders are allowed to use the new scores, but they don’t have to. So it’s worth asking.

Classic FICO vs. VantageScore 4.0 vs. FICO 10T at a Glance

Why This Matters for First-Time Buyers

For years, one score decided a lot. If you were new to credit, paid rent instead of a mortgage, or were still paying down debt, that score didn’t always show the full picture. Some buyers who pay their bills on time were turned down or paid higher costs.

Now lenders have more than one way to look at your credit. That means:

• More chances to qualify – Your rent and your progress paying down debt can count in your favor.
• A chance to pay less – If one score is higher than the other, it could lower your upfront costs.
• A reason to shop around – Lenders are using the new scores at different speeds, so the lender you choose can make a real difference.

How Could the New Scores Help First-Time Buyers?

Many first-time buyers have a short credit history, pay rent, or are still paying down debt. The old score didn’t always give them full credit. The new scores can help in four ways.

1. Your Rent Can Count

Rent is often the biggest bill you pay each month. Classic FICO doesn’t count it. Both new scores can, as long as your rent is reported to the credit bureaus (the companies that keep your credit reports).

Right now, only about 13% of renters have their rent reported. VantageScore estimates that nearly 4 million renters could reach a score of 620 or higher if their on-time rent were reported. 620 is a common minimum score for many home loans.

2. More People Can Get a Score

Some people don’t have enough credit history to get a score at all. VantageScore says its model can score about 33 million more people than older models, including many renters and people who are new to credit.

3. Your Progress Counts

Classic FICO looks at your credit on one day. The new scores look back about two years to see which way things are heading.

If you’ve been paying down your credit cards, the new scores can see that. But if your balances have been slowly going up, that can count against you.

4. You Might Pay Less

Fannie Mae and Freddie Mac charge an upfront fee based on your score. Many people get a slightly higher number with VantageScore. Since September 29, 2026, that higher number can mean a lower fee.

Real-World Examples

What Lenders Are Seeing

Some of the largest lenders are already sharing results:

• Rocket Mortgage now uses VantageScore 4.0 by default for eligible loans. Borrowers who saved money with it saved about $1,600 at closing on average.
• United Wholesale Mortgage says about 1 in 4 of its borrowers get a better result with VantageScore.

What Hasn’t Changed, and Why It Still Matters

A new score is a new way of looking at the same credit history. It won’t erase late payments, and it’s only one part of your application. Here’s what still applies, and what it means for you.

• Your lender picks the score – You can’t choose it yourself, and everyone on the loan gets scored the same way. Why it matters: The lender you pick affects which score you get. Asking questions and comparing lenders can pay off.
• The rest of your finances still matter – Your income, debts, savings, and down payment are still a big part of the decision. Why it matters: A better score helps, but it won’t make up for a budget that’s stretched too thin. Keep working on your savings and debt too.
• Not every lender offers it yet – Using the new scores is optional, and many lenders are still getting started. Why it matters: If your first lender only uses Classic FICO, a second lender might see you differently.
• FHA buyers need to wait – The new scores start for FHA loans on January 1, 2027. Why it matters: If you’re planning to use an FHA loan, your timing could affect which score is used.
• Programs may have their own rules – Many first-time homebuyer and down payment assistance (DPA) programs set their own minimum credit scores. Why it matters: Even if a lender approves your score, a program you’re counting on might need a higher one. Check early.
• Your app score may not match – The free score in your bank or credit card app may not be the score a lender sees. Why it matters: Don’t rule yourself out based on an app. Getting preapproved is the best way to see your mortgage score.

These rules are still changing. Check with your lender for the latest.

How Can You Get Ready?

If you plan to buy in the next year or two, here are some simple steps.

1. Ask Which Score They Use – Ask each lender if they use Classic FICO, VantageScore, or both. If they can check both, ask them to use the one that helps you.
2. Get Credit for Your Rent – Ask your landlord if they report your on-time rent, or sign up for a rent-reporting service.
3. Pay Down Balances Steadily – The new scores reward steady progress over time, not just a low balance on one day.
4. Hold Off on New Credit – Opening new cards or loans before you apply can lower your score under any model.
5. Compare Two or Three Lenders – Lenders are adopting the new scores at different speeds. Compare the Loan Estimate each one gives you. (A Loan Estimate is a form that shows your rate and costs.)
6. Ask About First-Time Buyer Programs – Find out what credit score each program needs, and which scores it accepts.
7. Get a Second Set of Eyes – A housing counselor can review your credit and help you plan your next steps.

Why Homebuyer Education Matters

Credit scores are just one part of getting ready to buy a home.

Homebuyer education can help you:

• Build and protect your credit
• Understand how lenders make decisions
• Plan for your down payment and closing costs
• Navigate the homebuying process step by step
• Meet homebuyer education requirements for certain loans and down payment assistance programs.

Take the Next Step Toward Homeownership

The new credit scores could open the door for more first-time buyers. Knowing how they work helps you make the most of them.

Framework’s online homebuyer education course walks you through each step, from building credit to closing day. It meets national industry standards and is accepted by many state, local, and nonprofit first-time homebuyer and affordable homeownership programs.

Wherever you are in your journey, learning the process,  buy with confidence, and save money along the way.