Rent Payment History Boosts Mortgages in Fargo-Moorhead 2025

By Christopher Leigh | July 9, 2025

A new policy from Fannie Mae and Freddie Mac is opening doors for first-time homebuyers in Fargo-Moorhead by allowing rent payment history to count toward mortgage qualification. In 2025, this change is empowering renters in Fargo, ND, and Moorhead, MN, to achieve homeownership. Discover how this works and start your journey with Team Vision Realty by exploring Fargo-Moorhead homes for sale.

How Rent Payments Help You Qualify for a Mortgage

Effective immediately, mortgage lenders can use VantageScore credit ratings, which factor in rent payment history reported to Equifax, Experian, or TransUnion, alongside or instead of traditional FICO scores. “This is a game-changer for renters in Fargo-Moorhead,” says Christopher Leigh of Team Vision Realty. “If you’ve paid rent on time, you can now build a stronger credit profile to qualify for a mortgage.”

Unlike FICO, which requires six months of credit history, VantageScore can generate a score with just one month, making it easier for first-time buyers with thin credit files. In Fargo-Moorhead, where the average home price is $387,160 in West Fargo and $299,098 in Moorhead, this policy expands access to affordable homes in neighborhoods like Prairie Meadows, Moorhead, starting at $250,000.

Expert Tip: “Check if your landlord reports rent payments to credit bureaus,” says Christopher. “This can boost your mortgage eligibility in Fargo-Moorhead’s competitive market.”

• What to Do:
  • Verify your rent payment history with your landlord or property manager.
  • Monitor your VantageScore for free through services like Experian or TransUnion.
  • Explore Fargo-Moorhead homes for sale to find properties within your budget.

Benefits for First-Time Buyers in Fargo-Moorhead

The Fargo-Moorhead housing market in 2025 is balanced, with 784 active listings (up 28% year-over-year) and homes spending a median of 90 days on the market. The VantageScore policy helps first-time buyers, especially those with limited credit history, qualify for conforming mortgages backed by Fannie Mae and Freddie Mac. “This expands the buyer pool in areas like The Wilds in West Fargo,” says Christopher, noting that higher credit scores can secure lower rates, potentially saving thousands over a loan’s life.

For example, a $300,000 home in Moorhead at 6.8% interest has a monthly payment of about $1,565, fitting a $74,643 income using the 50/30/20 rule. FHA loans, requiring only 3.5% down, are ideal for first-time buyers in neighborhoods like Southdale Farms, Horace.

Expert Tip: “A higher VantageScore can lower your mortgage rate,” says Christopher. “Team Vision Realty can connect you with lenders to maximize this opportunity.”

• What to Do:
  • Work with a lender to explore FHA or conventional loans.
  • Use our Mortgage Calculator to estimate payments.
  • Check out all active listings in The Wilds.

Why This Matters for Fargo-Moorhead’s Housing Market

This policy strengthens the Fargo-Moorhead housing market by increasing the pool of qualified buyers. With 568 homes sold in West Fargo and 216 in Moorhead last year, and 17% of listings in West Fargo and 15% in Moorhead offering price cuts, buyers have more leverage. “Renters who’ve been consistent can now transition to homeownership,” says Christopher, highlighting opportunities in affordable subdivisions like Prairie Meadows.

The policy also fosters competition in credit scoring, potentially lowering closing costs. Nationally, credit-check fees have risen significantly since 2022, but using both FICO and VantageScore could reduce these costs, making homebuying more accessible in Fargo-Moorhead.

Expert Tip: “Get pre-approved to strengthen your offer,” says Christopher. “This policy makes it easier for renters to qualify in a buyer-friendly market.”

• What to Do:
  • Get pre-approved with a lender familiar with VantageScore.
  • Explore Fargo-Moorhead homes for sale for single-family homes or townhomes.
  • Tour neighborhoods like Prairie Meadows to find the right fit.

Getting Started in Fargo-Moorhead

Ready to buy a home in Fargo-Moorhead using your rent payment history? Here’s how to begin:

1. Verify Rent Payments: Confirm with your landlord if rent payments are reported to credit bureaus.
2. Check Your Credit: Monitor your VantageScore through free services like Experian.
3. Explore Financing: Work with a lender for FHA or conventional loans, leveraging VantageScore.
4. Tour Neighborhoods: Visit subdivisions like The Wilds or Southdale Farms.
5. Partner with Experts: Team Vision Realty, a member of the Fargo-Moorhead Area Association of REALTORS®, can guide you to your dream home.

Conclusion

Fannie Mae and Freddie Mac’s new policy lets your rent payment history help you qualify for a mortgage in Fargo-Moorhead’s 2025 housing market. With growing inventory and buyer-friendly conditions, now’s the time to act. Explore Fargo-Moorhead homes for sale, or contact Christopher Leigh using the form below or call +1(701) 715-4747 to start your homebuying journey!

Contact Vision Realty in Fargo-Moorhead

Christopher Leigh, Broker
+1(701) 715-4747 | chris@visionrealty.us
509 Front St, Hawley, MN 56549