The American Dream Deferred: Challenges in Traditional Lending
The American Dream of homeownership often seems just out of reach for many families. For the Harris family, this was a harsh reality. Burdened by debt, low credit, and a bankruptcy on their record, the traditional path to homeownership felt like a distant, unattainable goal. Repeated setbacks with a traditional lender only deepened their frustration. But this determined family refused to give up.
Cynthia and LaRon Franklin have four children – and found themselves on a challenging path to homeownership. Navigating the traditional lending landscape can often feel like an uphill battle. Strict credit score requirements, substantial down payment expectations, and rigid debt-to-income ratios imposed by banks and lenders create significant barriers to homeownership. For individuals with less-than-perfect credit histories, past financial challenges, or limited savings, these obstacles can seem insurmountable. The complexities of the mortgage application process, coupled with the fear of rejection, can discourage potential homeowners before they even begin.
For the Harris family, juggling bills, rent, and debt while pursuing homeownership felt nearly impossible. In 2021, they quit their journey, feeling defeated and unsure how to move forward with the traditional lender.
A Beacon of Hope: Acts Lending and Homebuyer Support
But in 2022, the Harris family found hope with Acts Housing. Established in 2013, Acts Lending addresses the unmet need for affordable mortgages that traditional lenders often reject due to small loan size, low family income, or challenges financing distressed properties. While the Harris family still needed to work towards financial readiness, Acts Housing offered a pathway to a mortgage otherwise unavailable.
Acts Lending has a proven track record of success in a traditionally high-risk market. Over the past decade, Acts Lending has originated more than $8 million in mortgage loans, demonstrating a strong commitment to serving underserved communities. With minimal write-offs totaling less than $12,000, Acts Lending has effectively challenged the notion that these loans are inherently risky. Instead, it has helped families to achieve their dream of homeownership, build equity, and establish a foundation for generational wealth.
Persistence Pays Off
Acts Housing homebuyer coaches worked with the Harris family to rebuild credit, close out bankruptcy, and pay off debt. Homebuyer coaches collaborate with families to create a game plan and slowly chip away at their financial to-do list. Having a homebuyer coach in their corner meant that the Harris’ had someone to give them the best advice on what to check off next and keep them motivated.
Their coach, Temesgen shared, “This family was very ambitious. They did everything I advised them to do. If I asked them to work on paying off a collection by the next week they’d have done it. They were always working on the next step.”
With the support of Acts Lending, Homebuyer Coach Temesgen, Acts Realtor Jenean, and many others on the Acts team, Cynthia and LaRon closed on their first home on October 13th, 2023.
The American Dream Unlocked: Cynthia and LeRon shared what homeownership means to them.
Cynthia explained, “It’s a big responsibility. But it means it’s something we can call our own. Eventually, we can pass this down to our kids.” LaRon added, “It means we answer to no one and live by no one else’s rules. It’s the joy of being responsible for your own, which was always the ultimate goal. We have something to call our own.”
Since 2013, Acts Lending has improved the social and economic conditions of underserved people and those who live in economically distressed communities by originating mortgage loans that were otherwise unavailable through traditional lending.
