Positive Rental Payment History
Positive Rental Payment History refers to the on-time payment by a Borrower of all rental payments in the previous 12 months. A rental payment is considered to be on time when it is paid within the month due.
A First-Time Homebuyer refers to an individual who has not held an ownership interest in another property in the three years prior to the case number assignment. First-Time Homebuyer includes an individual who is divorced or legally separated and who has had no ownership interest in a Principal Residence (other than joint ownership interest with a spouse) during the three years prior to case number assignment.
A Mortgagee may submit the transaction to TOTAL Mortgage Scorecard indicating a Positive Rental Payment History provided:
The transaction is a purchase;
At least one Borrower is identified as a First-Time Homebuyer;
The Minimum Decision Credit Score (MDCS) is 620 or greater; and
At least one Borrower has a documented history of a Positive Rental Payment History with Monthly payments of $300 or more for the previous 12 months.
To verify rental payment history, the Mortgagee must obtain a copy of the executed rental or lease agreement and one of the following:
Written verification of rent from a landlord with no Identity of Interest with the Borrower;
12 months’ canceled rent checks;
12 months’ bank or payment service statements documenting rents paid; or
Landlord reference from a rental management company.
Borrowers renting from a Family Member must provide a copy of the executed rental or lease agreement and 12 months’ canceled checks or bank statements to demonstrate the satisfactory rental payment history.