Short answer
They can on a Fannie Mae loan. With a lease that includes an option to buy, the part of your rent the seller agrees to credit toward the purchase can count toward your down payment. The credit can't be more than the difference between the market rent, set by the appraiser, and the rent you actually paid. You'll need the signed agreement, a lease of at least 12 months, and proof of every payment.
How does a rent credit work?
Say the appraiser finds the home would rent for more than you've been paying. The extra you paid above that market rent, as your agreement spells out, is what can be credited. If your rent equals the market rent, there may be little or no credit to use. You don't have to put in a minimum amount of your own money for the rent credit to count, and it isn't treated as a seller contribution.
What papers will the lender want?
- The lease with an option to purchase, showing an original term of at least 12 months, how many months it runs, the monthly rent and the monthly credit.
- Proof of each rent payment, such as canceled checks, bank statements or money order receipts, showing who was paid and how much.
- The appraisal, which reports the market rent.
Cash payments without receipts are hard to prove, so pay in a way that leaves a record.
What should I watch out for?
Rent-to-own deals vary. Before you sign, have an attorney review how the price is set, what happens to your credits if you don't buy, and who handles repairs. Talk with Tom early about whether you're on track to qualify when the option comes due.
What about a rent-back after closing?
That's different. If the seller pays you to stay in the home for a while after closing, that money can appear as a credit, but Fannie Mae doesn't let it count toward your down payment, closing costs or reserves. See where your down payment can come from.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.