Tyshondra came for her first pre-purchase counseling session in April 2023, with the goal of becoming mortgage-ready to achieve her dream of homeownership. During the initial assessment, it was determined that she needed to modify her money management habits, as her budget reflected a significant monthly deficit, which contributed to her lack of savings and poor credit.

At the time, Tyshondra’s credit scores were in the mid-550 range, largely due to several collection debts and the overuse of her credit cards, which were at or over their limits. Additionally, she had over $25,000 in student loan debt, further impacting her financial ratios.

A budget was developed based on a “needs vs. wants” framework, allowing her to cover essential household expenses while also setting aside a modest amount for savings. Tyshondra was committed to following the budget and took the initiative to secure a second full-time job. The income from this job was dedicated to reducing credit card balances, negotiating settlements with collectors, and paying down her student loan debt.

Tyshondra’s hard work and dedication paid off. She successfully reduced her credit card utilization from nearly 100% to below 30% and eliminated all collection debt. Her student loan debt was also significantly cut in half.

However, her high income from the two full-time jobs initially prevented her from qualifying for down payment and closing cost assistance. She continued working the second job until it began to affect her health but managed to save over $8,000 during that time.

Ultimately, Tyshondra’s efforts led to an improvement in her credit scores, which rose above the 700 level across all three credit reporting agencies. With her enhanced financial standing, she qualified for a home loan in Polk County and received down payment assistance. Tyshondra successfully purchased a property.