By Sean Colón
A Major Credit Score Shift That Every Arizona Realtor Needs to Know
If your first-time homebuyers have been held back by limited credit history, there’s big news out of Washington that could open more doors—literally. As of this month, a significant policy change at Fannie Mae and Freddie Mac could make it easier for renters across Arizona to finally qualify for a mortgage. For realtors working in a market where affordability and qualification hurdles continue to dominate conversations, this shift may be one of the most important updates in 2025.
What Changed?
The Federal Housing Finance Agency (FHFA) has announced that mortgage lenders can now use VantageScore alongside or in place of the traditional FICO score when evaluating mortgage applicants. While FICO has long been the industry standard, VantageScore introduces something groundbreaking: it factors in on-time rent payments, if reported to one of the three major credit bureaus—Equifax, Experian, or TransUnion.
This is a huge win for renters in the Phoenix metro area, Tucson, and beyond who consistently pay on time but have little or no credit history from loans or credit cards.
📊 According to Realtor.com’s senior economist, this update could significantly increase the pool of qualified buyers, especially those with thin credit files.
Why Arizona Realtors Should Pay Attention
Here in Arizona, where the median home price as of June 2025 is hovering around $459,000 (ARMLS), many would-be buyers—especially Gen Z and Millennials—are still renting. With Maricopa County ranking as one of the fastest-growing counties in the U.S., this update could have a direct impact on your buyer pipeline.
As a realtor, knowing that timely rent, utility, and telecom payments now count toward creditworthiness gives you new tools to:
Educate renters on their path to homeownership
Expand your first-time homebuyer outreach
Close deals that previously stalled due to limited credit history
What Is VantageScore, and Why Does It Matter?
Unlike FICO, which often requires six months of active credit to generate a score, VantageScore can create a profile after just one month of reported activity. This allows renters—particularly younger buyers or recent immigrants—to get into the game sooner.
Other VantageScore benefits:
Includes rent payment history as a factor
Easier to access through free credit monitoring tools
Encourages more competition in the credit scoring industry, which may help reduce borrower fees
For realtors, this change means more buyers may qualify for conforming loans—which make up the majority of mortgages offered today.
What About FICO?
While FICO 10T has also started factoring in rent history, many lenders still rely on older models that don’t. And according to the Consumer Financial Protection Bureau, credit report costs have increased as much as 400% since 2022. Introducing VantageScore into the mix may help reduce those closing costs, which is a win-win for both agents and clients.
🏡 “This is a major step toward a more accurate and equitable mortgage underwriting process,” says Shannon McGahn, Chief Advocacy Officer at the National Association of Realtors®.
Key Takeaways for Arizona Realtors
Here’s how to put this new policy to work for your business:
✅ Start educating renters now about reporting their rent payments to the credit bureaus. Resources like RentReporters or Experian Boost can help.
✅ Partner with lenders who offer both FICO and VantageScore options, and ask about rent-inclusive underwriting.
✅ Use this as a lead magnet. In your next newsletter or social post, ask: “Did you know your rent payments might now help you buy a home?” It's a powerful hook.
✅ Promote yourself as an expert who’s ahead of the curve on mortgage policy. Buyers want realtors who bring fresh insights and added value—especially in a competitive market.
Bottom Line
This isn’t just a credit scoring update—it’s a shift in who gets to participate in the Arizona real estate market. Whether you’re working in fast-growing areas like Queen Creek and Buckeye or inside Phoenix’s urban core, understanding and leveraging this new rule can help you turn renters into buyers—and position you as a knowledgeable, trustworthy, and strategic partner in the process.
Need help showcasing your listings with top-tier photography or virtual staging that builds your brand? Let’s talk.
By the way, I help realtors improve their online and social media presence by providing beautiful photos of their listings. That is why I’ve created this FREE HOME PREP LIST for your clients to help your listings look their best. Feel free to share.