Homeownership Education & Housing Counseling
At Fannie Mae, we believe quality homebuyer education and counseling are key to successful homeownership. An educated borrower is better informed with a clearer understanding of their housing needs and household budget. The borrower is empowered, and better able to solve problems, benefiting both the homebuyer and the lender.
Homeownership Education and Housing Counseling are different programs for a future homeowner to become educated on the home buying and financing processes.
For some of Fannie Mae’s affordable mortgage products, homeownership education may be required for certain borrowers.
Homeownership Education Requirements
Homeownership education completion is required for:
- At least 1 borrower for purchase loans greater than 95% LTV when all occupying borrowers are first-time homebuyers, regardless of the mortgage product chosen.
- For HomeReady® and HFA Preferred™ purchase loans, if all occupying borrowers are first-time homebuyers, homeownership education is required for at least one borrower, regardless of LTV.
- For borrowers with no credit score, if all borrowers are non-traditional credit, completing homeownership education is required for at least 1 borrower, for all loans.
Additional Resources
- HUD Housing Counseling Program
- Consumer Financial Protection Bureau’s Finding a Housing Counselor Tool
- Housing Counseling Overview
- Know Your Options
- Disaster Response
Framework Course
Future homebuyers can take the course when it’s convenient for them – all in just a few hours. According to Framework customer surveys, 91% said they increased their knowledge of the homebuying process.
Homeownership Education
Homeownership Education offered through Framework® is an interactive and comprehensive online education program that is designed to help future homebuyers navigate the home buying process. The Framework course makes it simple to meet the requirement. When homeownership education is required, a minimum of one occupying borrower must complete the Framework homeownership education course. In some situations, borrowers may need to fulfill the requirement in another way. Click here for a list of exceptions. Framework is available in English and Spanish, meets industry standards and consistently receives high marks from learners.
What your borrowers will learn:
- How much home they can afford
- How to choose the best loan
- How to lower their down payment
- What to include in their offer
- What happens at closing
- What pitfalls to avoid before and after closing
Housing Counseling
Housing counseling, also known as advising, is best suited for borrowers facing complex challenges – those who need one-on-one assistance to develop a deep understanding of their housing needs, household budget, and how to resolve potential issues.
Potential borrowers who are pursuing eligibility may benefit greatly from housing counseling from a HUD-approved nonprofit housing counseling agency.
For counseling to fulfill the HomeReady Mortgage education requirement:
- Counseling should occur as early as possible and before a buyer selects a home.
- Required components must be completed before a buyer enters into a contract to purchase a home.
- The assistance must meet HUD standards and cover the content detailed on the Certificate of Completion of Housing Counseling (Fannie Mae Form 1017), which must be signed by the buyer and the HUD counselor.
- By signing the form, the HUD counselor certifies that the assistance provided meets HUD standards and our requirements.
- The lender must retain the completed Form 1017 in the loan file.
What is the difference between homeownership education and counseling?
Homeownership education and counseling play critical and distinct roles in helping borrowers become mortgage ready.
| Delivery method | Content | Timing | |
|---|---|---|---|
| Homeownership Education |
*In certain circumstances a consumer may be better served in a group classroom setting or other education mode. |
Established curriculum and instructional goals Examples of topics
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| Housing Counseling |
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Covers all topics included in education setting MUST cover:
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