How to track your rent payments in Miami — which could lead to a mortgage to buy a home
That rent payment you make every month? Yes, it goes right into your landlord’s pocket. But now it can open a path for you to buy a home.
Renters who want to buy a house or condo soon can benefit from a new tool from Zillow that reports their payment history to credit companies — and that could help them get a mortgage for their first home.
Renters often pay more than 30% of their income for housing — anything more could amount to a financial burden for a family.
But because rent payments often go unreported, 26 million Americans are “credit invisible,” according to the Consumer Financial Protection Bureau. That means that the credit bureaus — Equifax, TransUnion and Experian — don’t have a credit history, even if people are paying their rent on time.
Recent Zillow research highlights the importance of this issue, particularly in Black communities, where residents often pay more in rent than they would pay for a mortgage. Zillow’s tool is also crucial for Hispanic families, because 15% are considered invisible in terms of credit history, according to the Consumer Financial Protection Bureau.
“Hispanics and African Americans are denied mortgage loans twice as often as whites, which is why this tool is so important, as it allows them to improve their credit score and prepare themselves to buy a home,” Marta Rey Babarro, vice president of research and insights at Zillow, told el Nuevo Herald.
ZILLOW REPORTS RENTAL PAYMENTS
Rey Babarro said that to benefit from the rent payment tool, people must make their payments digitally through Zillow.
Here’s how it works:
Renters must access the Renter Payments Dashboard, where they can choose the option to participate in the service that reports the payment.
Once a tenant opts in, Zillow identifies on-time rent payments, defined as payments made within 30 days of due date.
Payments made on time are reported monthly to Experian. In turn, Zillow