A growing trend among home builders has been to work with potential buyers to help them raise their credit scores so they can qualify for a mortgage or a better interest rate. This help has been in the form of enrolling potential buyers in programs for credit report errors, managing debt or other credit enhancement assistance.
Some home builders are working with companies that provide certified credit counseling to help people clean up their credit or providing free credit-improvement programs in-house. Since rebuilding bad credit takes more time than just correcting errors in a credit report, the programs can take anywhere from a few weeks to several months.
This approach is no quick fix to the current slowdown in the new home sale market. However, builders hope the process will build loyalty to their company and lead to a deal down the road. Home builders taking this approach include Hovnanain Enterprises, Inc., M/I Homes Inc. and D.R. Horton Inc.
While no one expects the use of these credit enhancement programs to generate a signficant volume in home sales, in today's market, every single sale counts.
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