Can You Get a Mortgage While in DMP?

Although a debt management plan or DMP is an affordable option for individuals who are having a difficult time getting out of debt, consumers should understand that a DMP may affect their ability to get additional financing.

The Facts

Consumers can lower their interest rates, eliminate creditor fees and combine several debt payments into one monthly payment by enrolling in a DMP. Enrolment in a DMP is noted on a consumer's credit report until all plan payments are made. While this information does not lower an individual's credit score, some lenders may looked at it negatively.


Although some consumers may be able to qualify for mortgages while enrolled in DMPs, they should check with their credit counselling agency before applying. Enrolment in some DMPs requires individuals to sign an agreement that forbids them from acquiring any new debt until they have completed their plans, which could take up to four years.


Individuals can manage their own debt in several ways without enrolling in DMPs. They can negotiate with their creditors directly to lower their payments or interest rates. They can also create a budget to keep track of their expenses and avoid overspending.

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About the Author

Victoria Robles graduated from Kaplan University with a degree in Paralegal Studies in 2007. She also earned her associate degree in business from Champlain College in 2002. Robles is a former job coach with three years of experience in editing real estate marketing materials and writing resumes for job seekers at her local workforce center.

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