Renting Can Help You Buy a Home

Clark Howard Show
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Automatic TRANSCRIPT

I've got some simple advice for you. That i hope will easier worries so we have roughly a third of americans that are renters. The percent that are renters has gone up over the last many years and many of those renters want to remain renters. Others would like to own a home and the problem is showing their credit history. They will help you qualify for a mortgage so it becomes kind of like a trap is you're renting so there's no mortgage payment history there and so how do you prove your ability to pay your bills as you should well. This is something that is being looked at more and more. I've talked about private services that allow you to turn your rent payment into a trackable essentially form of credit and how that is something that is now available in the marketplace and now a big development is that fannie mae one of the two government owned big lending organizations fannie mae freddie mac or the two bigs behind the curtain of most mortgages issued in the united states now has a new lending guideline that allows renner's to potentially qualify for a mortgage based on their history of how they paid their rent. Now it will be up to individual financial institutions whether or not they will adopt the guidelines that fannie mae has issued

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