Rocket Mortgage Launches Innovative Program to Help Renters Become Homeowners
Rocket Mortgage has introduced the RocketRentRewards program, a groundbreaking initiative that rewards renters with up to $5,000 to help them achieve homeownership. Launched in February, this program provides renters with a credit worth 10% of their final year of rent payments, which can be applied toward closing costs on a Rocket Mortgage home loan.
For example, renters paying $1,800 monthly would receive a $2,160 credit. “Many renters feel like homeownership is out of reach, especially as they try to save money for closing costs,” said Rocket Mortgage chief economist Bill Banfield. “RentRewards eases those concerns by rewarding clients for simply making their rent payments.”
To qualify, applicants must provide proof of rent payments for the past 12 months, such as canceled checks, bank statements, or a lease agreement. The credit can only be applied to purchasing a primary residence.
Closing costs, which can range from 2% to 6% of the home’s purchase price, are a significant barrier to homeownership. For a $200,000 home, this could mean up to $12,000 in additional costs. According to the Urban Institute, the variability in closing costs disproportionately affects lower-income homebuyers.
Rocket Mortgage requires a minimum credit score of 620 for conventional loans, although FHA loans have more flexible requirements. The program aims to make homeownership more accessible by addressing one of the significant upfront costs.
Key Details of the RocketRentRewards Program
- Credit worth 10% of the final year of rent payments
- Maximum credit of $5,000
- Can be used toward closing costs on a Rocket Mortgage home loan
- Requires proof of 12 months of rent payments
- Can only be applied to a primary residence
By providing financial assistance for closing costs, Rocket Mortgage’s RocketRentRewards program helps bridge the gap between renting and homeownership. This initiative demonstrates the lender’s commitment to making homeownership more accessible to a broader range of consumers.
