Louisville Urban League, Freddie Mac and National City Bank of Kentucky launched the CreditSmart/Homeownership Development Initiative—a new city-wide consumer education and loan program that combines financial literacy workshops, homeownership counseling and flexible mortgage products in an effort to increase homeownership in Louisville.

The path to homeownership will begin with free financial literacy workshops at the Louisville Urban League using Freddie Mac’s CreditSmart curriculum—a curriculum developed through a partnership with five Historically Black Colleges and Universities to educate consumers about credit and money management, provide insight into how lenders access credit histories, and explain the role of credit in achieving financial goals, such as homeownership.

Those interested in taking the steps to homeownership will receive counseling at the Louisville Urban League to ensure they are ready to purchase a home. A Freddie Mac study released last year found that counseling is effective in reducing mortgage delinquency. In fact, the study found that borrowers receiving counseling through individual programs experienced a 34% reduction in delinquency rates and borrowers receiving classroom and home study counseling obtained 26% and 21% reductions.

National City will provide mortgage financing for qualified borrowers. Thanks to Freddie Mac’s commitment to purchase $10 million in mortgages, National City Mortgage can provide homebuyers with mortgages that require as little as $1,000 coming from their own funds for down payment. Borrowers can cover the rest of the mandatory 3 percent down payment through grants, gifts, unsecured loans, or other down payment and closing cost assistance programs. By purchasing the mortgages from National City, Freddie Mac ensures a continuous supply of mortgage funds for additional homebuyers.

The CreditSmart/Homeownership Development Initiative is the latest Freddie Mac effort to expand affordable home ownership opportunities in the State of Kentucky. During 2001, Freddie Mac  invested more than $5 billion in mortgages in the State of Kentucky—$1.3 billion in Louisville alone.

Louisville residents wishing to learn more can do so by calling the Louisville Urban League at (502) 561-6830, ext. 122

CreditSmart/Homeownership Development Initiative Workshop Schedule

Call (502) 561-6830, ext. 122 today to reserve your place at the next workshop.