Rent Payments to Boost Your Credit? YES.
It's that time of the week! Time for #WisdomWednesday
Did you know that Freddie Mac announced a new initiative to help renters build credit by encouraging operators of multifamily properties to report on-time rental payments to the three major credit-reporting bureaus?
“Rent payments are often the single largest monthly line item in a family’s budget but paying your rent on time does not show up in a credit report like a mortgage payment,” said Michael DeVito, CEO of Freddie Mac. “That puts the 44 million households who rent at a significant disadvantage when they seek financing for a home, a car or even an education."
ALSO- did you know there is a perk to owners who are purchasing multi-family homes too??
"Freddie Mac will provide closing cost credits on multifamily loans for owners of rental properties who agree to report on-time rental payments through Esusu’s platform. Freddie Mac has also negotiated discounted fees for Esusu’s services. The platform manages the end-to-end process of reporting rental payments to all three major credit bureaus while ensuring compliance with industry standards. This solution eliminates the administrative and compliance burden for property owners, which has been the largest hurdle facing industry efforts to report rental data.
“At present, the most common way for rents to be reported to the credit bureaus is when there is a missed payment that has gone to a collections agency,” said Alexis Sofyanos, senior director of Equity in Multifamily Housing at Freddie Mac. “Freddie Mac wants to flip that script, so that renters who pay their rent on time and in full each month get credit for doing so, while also putting in safeguards for the most vulnerable.” "
#heatherathumboldtequity #iloverealestate #toprealtor #humboldtcountyrealestate #realestateknowledge #humboldtequity #firsttimehomebuyer #investmenthomes #yourshortsalesandforeclosureresource #icanhelp #sellingahome #buyingahome Heather Watkins DRE#02111228 707.599.4658 Humboldt Equity Inc. DRE#02087309