Bridges to Credit Program Overview

Bridge’s to Credit (BTC) is an credit management program designed to help families achieve financial control be getting access to main- street credit programs.  BTC employs a seven phase intervention process that addresses each of the five major components of credit score calculations and identifies opportunities for families to improve personal cash flow.  

Background

Bridges to Homeownership seeks to reconnect Detroit households to the American Dream of Home Ownership and financial stability by taking advantage of once in a generation affordability.  Its innovative land contract program provides a novel ramp to main-street financial service providers by providing families immediate ownership and time to improve credit, build equity, demonstrate ability to pay and lock in today’s low real estate prices in one of America’s most rapidly appreciating markets.  Consumer and public agency response to our program has quickly overwhelmed available capital due to the estimated three year credit rehabilitation period for our families creates a capital intensive process. BTC addresses this issue by shortening the time to solid credit for existing families and creating a pipeline buyers that are within 6- 12 months of being credit worthy.

Program Summary

The Program Consists of 7 Integrated Components which when fully implemented should provide a clear bridge to a 650 FICO and access to main-street Financing

1. Intake & Assessment - Determine where the client is at by reviewing credit reports.  This involves identifying erroneous credit information and establish a base line budget.
2. Eliminate any erroneous information – Provision of letters and support to eliminate dated or erroneous credit information. 
3. Budgeting Process including establishing the proper mix of credit.  Type of Credit matters developing a budget and incorporating a better credit mix and average balances can improve FICO by nearly 100 points.
4. Pay bills on time and avoid negative entries.  Identifying potential problem credit areas and proactively addressing to avoid negative reporting.
5. Repay outstanding delinquent.
6. Identify Opportunities to Enhance Income – Our link to Detroit Work Force Solutions and various training resources allow us to provide referrals to opportunities to improve employment or to help members of the household contribute more fully to the family’s financial wellbeing.
7. Financial Planning – Providing families with the tools to create a financial plan that insures best values in terms of financial products, potential purchase discounts and other savings opportunities creates long term client value post home purchase and refinancing.