According to The Street, Homeownership in the United States has become increasingly difficult for millions of Americans. Mortgage rates remain elevated in the 6.3 to 6.5 percentage range, and home prices are high in most major markets.
On top of this, a significant segment of potential buyers have struggled to qualify for mortgages under decades-old scoring models. This group largely includes those with strong rent payment histories, but thin traditional credit files.
Fannie Mae now allows #VantageScore 4.0, using rent and utility history for mortgages.
The update aims to help renters and younger buyers with limited traditional credit access homeownership.
Implementation is gradual; mortgage rates and high home prices still challenge affordability.
Americans face unexpected homebuying shift after Wednesday’s news Fannie Mae announced new credit score guidance that could affect how lenders evaluate mortgage applicants.
https://www.thestreet.com/real-estate/fannie-mae-credit-score-mortgage-rule-homebuyer