Affordable Conventional Mortgages Available To Consumers Repairing Credit Problems

EAST HARTFORD — Consumer Credit Counseling Service of Southern New England (CCCS), Freddie Mac, and Bank of America announced June 21 the introduction of Freddie Mac’s CreditWorks, an affordable conventional mortgage program, to Connecticut consumers. The three organizations are collaborating to help make it easier for individuals and families with excessive debt and impaired credit to become eligible for a market rate mortgage.

CCCS has been selected as the nonprofit in the Connecticut, Massachusetts, and Rhode Island areas to provide comprehensive debt counseling that will allow potential Connecticut borrowers to qualify for the CreditWorks mortgage product, underwritten by Bank of America. Freddie Mac will purchase the mortgages from Bank of America making it possible for potential buyers to take advantage of the CreditWorks product.

Potential CreditWorks borrowers must participate in a CCCS Debt Management Plan for at least 18 months. By making timely payments on an existing Debt Management Plan, and participating in CCCS’s homebuyer education, potential borrowers may qualify for a market rate home mortgage, despite very low credit scores. Without CreditWorks, people with very low credit scores would have to spend several years rebuilding their credit to qualify for market rate mortgages.

Through the CCCS debt management program and homeownership education, potential borrowers are counseled on how to repay debt, re-establish credit, manage finances, become eligible for homeownership, and succeed as long-term home owners.

For information on CreditWorks, how to set up a workable spending plan, help with debt problems, housing counseling, or other personal financial management issues, contact a local, nonprofit CCCS at 800/208-CCCS (800/208-2227).