Qualifing for a mortgage is never easy. Many people pay rent which is often the largest expense on a monthly budget. This expense, which singals how important a consumer makes sure their housing expense gets paid was never used in underwring for mortgages
Bilt, a fintech company created the Bilt Mastercard to allow for consumers to use a credit card for rent payments to earn points and build credit. Like many credit card offerings, this is product benefits prime and superprime consumers and leaves behind nearly all of americans.
The FHA expects this change to allow 5 million new consumers to benefit and $1 Trillion in new mortgages.
What is VantageScore 4.0? (Empowering lenders to open credit access (and opportunity) to approximately 94% of adults in the U.S.)
VantageScore 4.0 is the latest tri-bureau credit scoring model from VantageScore. This version has added features that make it possible to score 33 million more U.S. adults than previously possible
Highlights:
- 10% LIFT FOR USERS WITH DORMANT CREDIT HISTORIES
- 30% LIFT FOR USERS WITH ‘NO TRADES’
This singal in using Vantage Score 4.0 which allows for alternative mechasims on how it scores consumers will be a win for many subprime consumers looking for better avenues of credt. Staying focused and disciplined in managing your budget and working to consolidate your credit cards will always be important factors in qualify for a mortgage.
