Many would-be home buyers find out that they have too much debt, and they have trouble qualifying for a mortgage loan as a result of that debt. If this describes you, we recommend seeking help from a non-profit debt counseling group.
By reducing your debt, you'll be in a much better position to buy a home. You'll have a better debt-to-income (DTI) ratio, which helps to improve your credit score. You'll also have an easier time getting approved for a home loan. Below, you will find a list of non-profit counseling agencies that can help you reduce your debt before buying a home.
All of the organizations on this list are non-profit in nature. They provide free and low-cost counseling services to help consumers improve their debt situations.
Consumer Credit Counseling Services (CCCS)
This organization has been around since 1999. They provide a wide range of counseling services related to credit, debt management and similar topics. They help their clients in person, over the phone, and via the Internet, depending on the circumstances. Among other things, they can help you create a debt-management plan that will put you in a better position to buy a home.
http://www.creditcounseling.org
National Foundation for Credit Counseling (NFCC)
As their full name suggests, the NFCC overs a variety of credit counseling services for consumers. They also provide debt advice and assistance. Headquartered in Silver Spring, Maryland, this non-profit organization has been around for many years. They offer counseling on debt management and many other areas. According to their website, the majority of their services are "provided at low or no cost to clients."
http://www.nfcc.org
Springboard (Credit.org)
This non-profit has been around since 1974. They provide education and counseling designed to help people improve their credit. If you want to feel good about the legitimacy of this organization, I recommend visiting their "About" page and reviewing their long list of accreditation. They are affiliated with, or accredited by, the other non-profit agencies listed above.
http://www.credit.org
The three organizations listed above are the only ones we recommend. They are truly non-profits, meaning all of their services are provided at little or no cost. They also know what they are doing. But you should be aware that there are many profit-driven companies that claim to be "non-profit."
When doing a Google search for non profit debt help, I found plenty of these companies. For example, there are quite a few "Christian debt counseling" companies that use the word "non-profit" within their Google ad listings. They do this merely to entice people to click through to their websites. I contacted a handful of these companies to inquire about their confusing labels, but none of them responded to my inquiries. It's a pretty clear case of bait-and-switch marketing, if you ask me. And how "Christian" is that?
Here's the bottom line. Do yourself a favor and stick to the non-profit debt counseling organizations I've listed above. They are all reputable agencies with long histories behind them.