Mortgage Navigator • Conventional • Can This Be Done?

Lease Option & Rent Credit

A renter who has been paying above-market rent under a real lease-option agreement may have usable purchase credit.

Build My Mortgage Game PlanCompare Fannie vs. Freddie

Fannie rent credit

Fannie permits a documented rent credit with an option to purchase to count toward the down payment or minimum borrower contribution. The eligible amount is limited to the difference between appraiser-supported market rent and the actual rent paid.

Documentation

The agreement must have an original term of at least 12 months and identify the rent and monthly credit. The lender also needs evidence of the actual rental payments and an appraisal supporting market rent.

Not an IPC: Fannie specifically states the qualifying rent credit is not treated as an interested-party contribution.
Do not confuse this with seller rent-back: a seller's post-closing rent-back credit cannot be used as qualifying funds for down payment, closing costs or reserves.

Official agency baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

These are agency-level rules. AUS findings, mortgage insurance, product restrictions and lender/investor overlays can still affect a real loan.