The Federal Housing Administration will permit the inclusion of a first-time homebuyer's positive rental payment history as an additional factor in determining eligibility to have an FHA-insured mortgage.
By adding a positive rental history indicator towards the Technology Available to Approved Lenders mortgage scorecard, FHA's credit evaluation will become more comprehensive and equitable, the agency said in today's announcement, using the objective of enabling additional first-time homebuyers to be eligible for a affordable FHA-insured mortgage financing.
In its new policy, FHA considers positive rental payment history because the on-time payment of all rental payments in the previous Twelve months. Lenders originating forward-purchase mortgages for FHA insurance is going to be necessary to obtain verification from the borrower's on-time rental payments and indicate using a new indicator inside the scorecard the submission of the positive rental payment history for the borrower.
Lenders can start indicating a borrower's positive rental payment history in the TOTAL mortgage scorecard for scoring events beginning on Oct. 30, 2022, and for case numbers assigned on or after Sept. 20, 2022. The agency provided a guidance document.
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