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The Winding Road to Homeownership
CommunityJanuary 14, 2025
Brittney wanted to determine if she could one day become a homeowner. However, for years, a single issue had been a major source of stress, rendering her too afraid to confront it. So, when the 36-year-old initially visited the GLCU Foundation for Financial Empowerment, she addressed her situation with Senior Housing Counselor John Borthwick.
Saddled with debt following a car accident that severely devalued her vehicle, Brittney had found herself in collections after her car was repossessed. During their initial meeting, John addressed the situation head-on. He called the collections company and discovered that the balance had been transferred to a law firm that was only a month away from taking it to court. John worked with the law firm and persuaded them to settle the debt for roughly $3,800.
John began making calls to lenders to figure out who might be able to give Brittney an affordable loan. He also checked with his teammates, and someone strongly recommended the non-profit Jewish Free Loan Chicago (JFLC). The GLCU Foundation worked with JFLC on preparing Brittney’s paperwork and they successfully qualified her for a zero-interest loan with an affordable minimum payment that would start in 2025.
Brittney would also be able to use tax rebate money to pay off the loan almost immediately, going from an $18,000 collection to being 100% debt free! This was the one major obstacle from beginning the pre-purchase timeline for her since it had such a large impact on the debt to income needed to qualify for a home.
Together with Brittney, John went over different options available to her. Besides working on her credit, another goal that stood out was building her savings to eventually qualify for a Habitat for Humanity home within the next year or two, as Habitat for Humanity takes its applications every fall.
Like Habitat for Humanity, the GLCU Foundation believes affordable housing plays a critical role in developing and sustaining strong and stable communities. After meeting with John and facing her fears about the old debt, Brittney felt a renewed sense of purpose and remains determined to continue working with the GLCU Foundation to qualify for Habitat for Humanity and accomplish the dream of homeownership one day.
If you or someone you know is in need of free financial and housing counseling assistance, don’t hesitate to reach out and schedule a free screening.
The information in this post is for educational and informational purposes only and does not constitute investment or financial advice. You should consult a licensed financial advisor before investing in any financial product or service.