Trump Administration Announces 'Huge' Change To Help New Homebuyers
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The Trump administration announced a change for prospective homebuyers that could allow their rent payments to qualify for a mortgage.
A spokesperson for the Mortgage Bankers Association (MBA), a group representing mortgage brokers, told Newsweek that if implemented correctly, the policy could "accomplish the goals of added competition in the credit score space and reduced consumer costs."
Newsweek reached out to the Federal Housing Finance Agency for comment via email.
Why It Matters
The announcement comes as the housing costs remain high across the country. In June 2025, the national median listing price was $440,950—up 0.2 percent from last year—according to data from Realtor.com. These historically high housing prices have locked potential homebuyers out of the market, critics say. The administration's move could make it easier for first-time buyers to secure a loan, proponents say.
A row of houses in Charlotte, North Carolina on June 14, 2014.
A row of houses in Charlotte, North Carolina on June 14, 2014.
bauhaus1000/iStock via Getty Images
What To Know
Bill Pulte, director of the Federal Housing Finance Agency (FHFA), announced on X, formerly Twitter, a new order that "will allow for Americans to use their RENT to qualify for a mortgage."
"Credit history will no longer just include credit cards and loans," he wrote. "This is HUGE."
The change is specifically that mortgages sold to Fannie Mae and Freddie Mac will now accept the use of VantageScore 4.0 credit scores in determining loan qualifications in lieu of the FICO 10T model. The VantageScore model differs in that it accounts for rent and utility payments in terms of its calculation.
The MBA spokesperson, in a statement to Newsweek,said there are still questions about the program before its implementation can begin, but that it could be beneficial to consumers.
"MBA has consistently advocated for increased competition in credit reporting and scoring and welcomes reforms that will lower costs for consumers. FHFA's announcement to allow lenders to have a choice of credit score models to use when delivering loans to Fannie Mae and Freddie Mac could help to accomplish the goals of added competition in the credit score space and reduced consumer costs, if implemented correctly," the statement reads.
The MBA will work with the FHFA to address the "numerous implementation questions that are necessary to realize these benefits as well as the continued conversations around credit reporting competition," according to the statement.
Silvio Tavares, president and CEO of VantageScore, touted the change as one that will promote "efficiency and affordability for creditworthy Americans" in a press release.
"Under Director Pulte's leadership, the FHFA's long-expected decision to accept VantageScore 4.0 will revolutionize the American mortgage market and grant millions of creditworthy Americans the golden opportunity to own their homes," Tavares said.
What People Are Saying
Bill Pulte, director of the Federal Housing Finance Agency, on X: "Effective today, to increase competition to the Credit Score Ecosystem and consistent with President Trump's landslide mandate to lower costs, Fannie and Freddie will ALLOW lenders to use Vantage 4.0 Score with no current requirement to build new infrastructure [stays Tri Merge]."
Senator Jim Banks, an Indiana Republican, on X: "Buying a home is a key part of the American dream. Glad to see @pulte making that happen."
Shannon McGahn, executive vice president and chief advocacy officer for the National Association of Realtors, in a statement: "This is a major step toward a more accurate and equitable mortgage underwriting process, one that considers timely rent, utility, and telecom payments as indicators of creditworthiness. These are real-world factors that show how people pay their bills and should count when determining if someone qualifies for a mortgage."
Daryl Fairweather, chief economist for Redfin, on X: "FHFA's approval of VantageScore is a win for competition, as it breaks FICO's monopoly on credit scores for conventional loans. This should lead to lower costs for lenders, but it's unclear if those savings will reach homebuyers in the form of lower closing costs."
What Happens Next
The specifics of implementation—how rental payment data will be reported, verified and weighed in mortgage decisions—remain to be clarified. It's unclear whether lenders will immediately began using VantageScore.
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