HOUSTON — The City Council will consider a proposal to use taxpayer money for paying down debt of first-time homebuyers trying to qualify for a mortgage through Houston’s assistance program.
The “Credit Score Enhancement Program” would give up to $3,000 for individuals to use on car loans, credit card balances or other debts. City officials believe the debt reduction could provide the slight boost in credit scores some applicants need in a tighter credit market.
The $444,000 for the program would come from leftover money in the city’s $1.5 million appropriation for emergency home and roof repairs from Hurricane Ike, the Houston Chronicle reported Tuesday.
Councilwoman Anne Clutterbuck said the program was well-intentioned but went too far.
“If this credit crisis has taught us anything, we need to focus on paying off our debts and saving more,” she said. “Using government money to help someone pay off debts is not the same as asking them to pay off their debts themselves.”