Can rent and utility payments help you qualify for a mortgage?
Last updated August 26, 2026 · Written by the Warens Financial Group education team
Reviewed by Franklin Warens, Mortgage Broker, NMLS #1249423 · Warens Financial Group, NMLS #2532048
Yes, they now can. In April 2026, federal regulators approved a newer credit score, VantageScore 4.0, for mortgages backed by Fannie Mae and Freddie Mac. Unlike the classic FICO score used for decades, it can consider rent and utility payment history where reported, which industry estimates suggest could make roughly 5 million more Americans scoreable.
If you have paid rent on time for years but have little traditional credit, this is one of the bigger changes to mortgage qualifying in a generation. Here is what changed, who it may help, and what it does not do.
What changed with mortgage credit scores in 2026?
On April 22, 2026, officials announced that mortgage lenders may use VantageScore 4.0 in underwriting loans backed by Fannie Mae and Freddie Mac, instead of only the classic FICO score.
Fannie Mae and Freddie Mac began accepting it immediately, and a first wave of 21 large lenders signed on. Separately, HUD announced plans to adopt both FICO 10T and VantageScore 4.0 for FHA loans. The classic FICO score also remains in use, so this is an expansion of options, not a replacement.
Sources: CNBC, "Mortgage lenders now have more credit score options," May 5, 2026; ABA Banking Journal, April 2026; FHFA, fhfa.gov/policy/credit-scores; Fannie Mae and Freddie Mac Credit Score Models initiative pages, 2026.
How is VantageScore 4.0 different from a classic FICO score?
It looks at more of your payment life, and how it trends over time.
| Classic FICO | VantageScore 4.0 | |
|---|---|---|
| Rent payments | Not considered | Can be considered where reported |
| Utility / telecom payments | Not considered | Can be considered where reported |
| Trended data (balances rising or falling over time) | No | Yes |
| Thin credit files | Often unscoreable | Can often produce a score |
The key phrase is where reported. Rent and utility payments only help if they appear in your credit data, either because your landlord or a rent-reporting service reports them, or through lender tools that can read permissioned bank account history.
Who could this help in Texas?
Buyers who pay their bills but do not look like it on paper.
- Renters with long on-time histories. And few credit cards or loans.
- Buyers who mostly use cash or debit. Common in many immigrant and first-generation communities.
- Younger first-time buyers. Who have not had credit long enough to build a thick file.
- ITIN earners building U.S. credit history. ITIN lending itself follows separate program rules; ask a licensed professional.
Industry estimates cited with the April announcement suggest the newer models could make roughly 5 million additional Americans scoreable. Being scoreable is not the same as being approved, but it means the door can open for a review.
What does this NOT change?
A new score model is not a lower bar.
It changes what information counts, not the rest of underwriting. Lenders still review income, debts, down payment, and the property. Each lender chooses which score models it uses and sets its own minimums, so availability varies. Missed payments still hurt under any model, and adoption is rolling out through 2026: FICO 10T for Fannie and Freddie loans is further behind, with historical scores expected in summer 2026.
What can you do now if your credit file is thin?
- Keep rent and utilities flawless. Under the new model, that history can work for you where reported.
- Ask about rent reporting. Some landlords and services report rent to the bureaus; that is what makes it visible.
- Hold steady before applying. Do not close old accounts or take on new debt right before a mortgage application.
- Talk to a licensed professional early. They can tell you which programs and score models may fit your file, in English or Spanish.
For the program-by-program minimums, read our full guide, What Credit Score Do You Need to Buy a House in Texas?
Frequently asked questions
- Can I buy a house with no credit score at all?
- Sometimes. Beyond the new score models, some programs allow manual underwriting using alternative payment histories such as rent and utilities. It is lender- and program-specific, so ask before assuming you cannot qualify.
- Does VantageScore 4.0 apply to FHA loans?
- HUD announced plans in 2026 to adopt FICO 10T and VantageScore 4.0 for FHA loans. Rollout timing varies; a licensed professional can tell you what a given lender uses today.
- Will my score be higher under VantageScore 4.0?
- Not necessarily. It is a different model, not a more generous one. It mainly helps people with thin files become scoreable and rewards steady payment patterns.
- Do I need a specific score to buy a house in Texas?
- Program minimums vary by loan type. See our full guide, What Credit Score Do You Need to Buy a House in Texas, for FHA, VA, USDA, and conventional minimums.
- Does paying rent through an app automatically build my credit?
- No. It only counts if it is reported to the credit bureaus or visible through a tool your lender uses. Ask your landlord or payment service whether they report.
Talk to a licensed, bilingual Houston mortgage team.
Warens Financial Group is a Houston-based, bilingual (English/Spanish) mortgage brokerage licensed in Texas, Florida, and Indiana, offering FHA, VA, conventional, jumbo, and Non-QM, investor, and DSCR loan programs. Our team can review your credit, budget, and goals and explain the programs you may be eligible for, en inglés o en español. Pre-qualification is free, no-obligation, and not a commitment to lend.
Disclaimer: This article is for general educational purposes only and is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Credit scoring model availability varies by lender and program and is changing through 2026; being scoreable under any model does not guarantee approval. Verify current details with the relevant agency and consult a licensed mortgage professional. Warens Financial Group, NMLS #2532048. Franklin Warens, Mortgage Broker, NMLS #1249423. Equal Housing Opportunity.
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