Community Homebuyer Mortgage Programs Can Help Build Credit
Karen LawsonLoanBiz Columnist
Community homebuyer
programs are designed to assist communities in redeveloping residential areas
and in providing reasonably priced homeownership opportunities for those with
limited income, credit, or down payment.
Many mortgage lenders offer products in conjunction with various
community initiatives to increase homeownership.
Community Homebuyer Mortgage
Options
Community homebuyer programs assist eligible homebuyers by
offering financial counseling and education. They may also offer mortgage loan
options designed to help homebuyers get into a new house. Typically, future homeowners
are required to attend a course that covers the basics of homeownership
including:
- How mortgage loans work
- Organizing finances and establishing a household budget
- Making responsible financial decisions and avoiding future bad credit
- Understanding credit scores and how to improve a bad credit score
- Debt counseling and creditor repayment
- The
costs of owning a home
Attendance at these home buyers seminars can help future homeowners
better understand how to shop for a mortgage loan, and how to prepare
financially for qualifying for a home loan. The programs may also offer low
interest loans, down payment matching, or down payment assistance. Some loans
only require as little as 1% down, or feature a mortgage tax credit certificate
program (which reduces the federal income taxes of qualified borrowers).
Completing the program has been shown to improve a
borrower's chance of making homeownership a success.
About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno
