How Should I Be Paying My Rent?

Mortgage and Lending with ClearPath Mortgage Solutions, Inc. NMLS #1394615 NMLS # 423279

How Should I Be Paying My Rent?


One area that can be a big help to your clients getting approved is paying their rent in a way that is document-able.   For example: if your client has a Credit Score under 580 and is applying for an FHA loan having 12 months, documenting their rent being paid on time is a must. Also, if you have a client with a Credit Score between 580-640, it is also a must to have 12 months proof of rent or housing expense being paid.  Cash is not an acceptable form of documentation because it can’t be documented.  You may say, “But I’ll have my landlord write out a receipt”. The issue is that there is no way to prove that the money you gave the landlord was your own money. 


If you don’t have checks I would suggest one of the following:



     1. Have your bank give you a cashier check from the funds in your account each month made out to your landlord.



     2. Pull out the exact amount of cash for rent and purchase a money order the same day for the exact same amount of cash you pulled out. Whichever strategy you use, don’t change it. Keep it consistent. Don’t miss a month of rent or paying cash one month. This could make or break your qualifying for a loan.


I recommend good ole’ fashioned checks!

Posted by

    -Mortgage Consultant for Life


Mike Rankin, NMLS #423279
ClearPath Mortgage Solutions, Inc. NMLS #1394615
950 New Loudon Rd. Suite 231

Latham, NY 12110
Cell:  518-380-4726


Mike Rankin does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Excellent post... to help folks get out of the rent rut.

Sep 30, 2014 05:15 AM #1
Randy Kirsch
Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT
(NMLS# 1012303) Your Dedicated Mortgage Consultant

I was explaining the process of credit repair to a broker just yesterday and explained that one of the best things to do to repair credit is to pay rent on time and document it as you have so artfully stated.  This is a page right out of Joe's book from a number of years ago when Joe was much more of a run and gun "lender" than he is as a broker today.  Good advice Mike.

Oct 08, 2014 09:46 PM #2
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Mike Rankin

Mortgage Consultant
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