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Buying a home may not be the right financial choice during the program, even if you can.Fact: In most cases, enrollment in a DMP will not negatively impact your credit score.If you’re already struggling to keep up with your debt payments and your credit score isn’t good enough to qualify for DIY consolidation options at the right rates and terms, then you have a last option for debt consolidation through a credit counseling agency called a debt management program. While you’re on a DMP, you can’t apply for unsecured credit like a credit card, but there’s nothing to prevent you from applying for a mortgage even while you’re on the program.The issue, is that in many cases, you’re in a DMP because you’re already on some shaky financial ground.With the first two options most people use for consolidating debt – credit card balance transfers and personal consolidation loans – there is no direct reason why either would make it difficult to buy a home.In fact, successful debt consolidation could actually make it easier to qualify.

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The Credit Union is available to assist with budgeting and correcting credit reporting errors.And still, once you complete the program, you’ll be back on more solid financial ground.If you complete the program and become completely free of credit card debt, then your debt-to-income ratio will be good.Basically, you’re doing something to consolidate the debt yourself.As long as you make the payments on the solution you choose to use (either for the consolidated debt on a single credit card, or to pay of the outstanding loan balance) then there’s no reason a lender would look at this negatively when you apply for a mortgage.

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