The volunteer income tax assistance (VITA) program has been popular with low and moderate income taxpayers for years. One firm has changed the rules by matching eligible taxpayers with asset-building programs.
Instead of simply filing a free tax return, taxpayers are also treated to two of their credit scores. They can find out if they meet lending guidelines for homeownership. The best part is that since the program is funded by Freddie Mac, the service is free.
Fiscal Progress is a nonprofit 501(c)(3) organization located in Raleigh, NC. They have been providing free tax prep through the VITA program since 2005.
The clients of Fiscal Progress do more than just save money on tax preparation. They also can get their free credit scores and credit reports, usually that same day.
What this does it is creates more of a one stop shop for people looking to do more with their income tax refund. Many people realize that they can buy a home, and that they meet initial criteria to apply.
According to Daniel Johnson, the program manager, “once they hear that they could be homeowners, they want to save their refund for a down payment. It’s amazing!” Fiscal Progress can also help prospective home buyers find out about down payment assistance programs provided through state agencies, by certain local governments and even through the Federal Home Loan Bank.
The credit scores are a great beginning because it immediately shows you where you stand. Sometimes there are negative records that are inaccurate that can be removed. Other times, counselors can show you how to remedy defaults so that your scores improve.
A couple thousand dollars in income tax refunds, plus $20,000 or more in down payment assistance can really help people buy a home using a conventional mortgage. They can get better rates, lower payments and they avoid paying private mortgage insurance (PMI).
The Fiscal Progress program is one to watch. They have provided other organizations with a road map to follow through their website at www.fiscalprogress.org.
For more information about the service, contact Fiscal Progress at 888-889-5325.
Tags: Down Payment Assistance, free credit scores, free tax prep, Homeownership