Community Homebuyer Mortgage Programs Can Help Build Credit

Karen Lawson
LoanBiz Columnist

Article Rating , 5 out of 5 based on 1 votes

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

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