What we verified in “Homebuyer education courses: when you need one”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under HUD's rule (24 CFR §214.3), housing education means formal classes with an established curriculum and instructional goals, in a group or classroom setting, on topics for groups of people such as renter rights, the homebuying process, how to maintain a home, budgeting, fair housing, identifying and reporting predatory lending practices, the rights of people with disabilities and the importance of good credit; counseling, by contrast, is counselor-to-client help for unique financial circumstances or housing issues, focused on overcoming specific obstacles such as repairing credit, buying a home or locating cash for a down payment, and except for reverse mortgage counseling it always involves an action plan.

   Sources 1 · 24 CFR §214.3, 'Education' and 'Counseling': 'Formal classes, with established curriculum and instructional goals provided in a group or classroom setting'; 'Renter rights'; 'The homebuying process'; 'How to maintain a home'; 'Budgeting'; 'Fair housing'; 'Identifying and reporting predatory lending practices'; 'The importance of good credit'; 'Counselor to client assistance that addresses unique financial circumstances or housing issues'; 'locating cash for a down payment'; 'Except for reverse mortgage counseling, all counseling shall involve the creation of an action plan' · Checked October 17, 2026

2. Under HUD's rule (24 CFR §214.300), participating agencies that offer group educational sessions must also offer individual counseling on the same topics; and agencies that provide homeownership counseling must cover the entire process: the decision to buy, choosing and buying a home, the home inspection and issues during ownership.

   Sources 2 · 24 CFR §214.300(a)(7)–(8): 'All participating agencies that offer group educational sessions must also offer individual counseling on the same topics covered in the group educational sessions'; 'shall address the entire process of homeownership'; 'the decision to purchase a home, the selection and purchase of a home, the home inspection process' · Checked October 17, 2026

3. Under HUD's rule (24 CFR §214.313), participating agencies may charge reasonable and customary fees for housing education and counseling, as long as the cost does not create a financial hardship for the client; they must post their fees and tell you before providing services; they cannot charge for client intake; and if they charge, they must provide counseling without charge to people who cannot afford the fees.

   Sources 3 · 24 CFR §214.313(a)–(c): 'Participating agencies may charge reasonable and customary fees for housing education and counseling services, as long as the cost does not create a financial hardship for the client'; 'An agency's fee schedule must be posted in a prominent place'; 'Agencies must inform clients of the fee structure in advance of providing services'; 'Clients cannot be charged for client intake'; 'Provide counseling without charge to persons who cannot afford the fees' · Checked October 17, 2026

4. According to Fannie Mae's Selling Guide, homeownership education has an established curriculum and goals, is given in a group, classroom setting or other formats, and covers topics such as the homebuying process, maintaining a home, budgeting and the importance of good credit; housing counseling is one-on-one help for unique circumstances, involves a budget and a written action plan, and includes an education component; and Fannie Mae requires programs aligned with the National Industry Standards (NIS) or HUD's counseling program, or provided by a HUD-approved agency.

   Sources 4 · Selling Guide B2-2-06, Homeownership Education and Housing Counseling (Nov. 5, 2025): 'Education with an established curriculum and instructional goals, provided in a group, classroom setting, or via other formats'; 'covers homeownership topics such as the home-buying process, how to maintain a home, budgeting, and the importance of good credit'; 'One-on-one assistance that addresses unique financial circumstances and housing issues'; 'All housing counseling involves the creation of a budget and a written action plan and includes a homeownership education component'; 'aligned with the National Industry Standards (NIS) for Homeownership Education and Counseling or the U.S. Department of Housing and Urban Development (HUD) Counseling Program, or provided by a HUD-approved counseling agency' · Checked October 17, 2026

5. According to Fannie Mae's Selling Guide, at least one borrower must complete homeownership education before closing in these cases: a purchase where no borrower has at least one credit or installment account on their credit report (as instructed by the DU underwriting system); a manually underwritten purchase where no borrower has a credit score; a HomeReady purchase where all occupying borrowers are first-time buyers; or a purchase with a loan-to-value ratio above 95% where all borrowers are first-time buyers.

   Sources 4 · Selling Guide B2-2-06, 'Transactions that Require Homeownership Education': 'at least one borrower on the loan must complete homeownership education prior to loan closing'; 'if none of the borrowers on a purchase transaction underwritten in DU has at least one credit account or installment account reported on their credit report'; 'if all borrowers on a manually underwritten purchase transaction do not have a credit score'; 'HomeReady purchase transactions when all occupying borrowers are first-time homebuyers'; 'purchase transactions with LTV, CLTV, or HCLTV ratios greater than 95%, when all borrowers are first-time homebuyers' · Checked October 17, 2026

6. According to Fannie Mae's Selling Guide, any qualified third-party provider independent of the lender may give the education, with content aligned with NIS or HUD standards; it may be delivered in person, online, by phone or in a hybrid format; instead of the course, the borrower may receive counseling from a HUD-approved agency; the lender must confirm the course is aligned with those standards and keep a copy of the completion certificate; and on HomeReady loans, borrowers who complete housing counseling within 12 months before closing may qualify for a loan pricing credit.

   Sources 4 · Selling Guide B2-2-06, 'Meeting the Homeownership Education Requirement' and 'Housing Counseling': 'Fannie Mae permits any qualified third-party provider, independent of the lender, to administer homeownership education'; 'The education may be delivered in various formats (in-person, Internet, via telephone, or a hybrid format)'; 'In lieu of homeownership education, the borrower may receive housing counseling'; 'must retain a copy of the certificate of course completion in the loan file'; 'Housing counseling must be provided by a HUD-approved agency'; 'HomeReady loans where borrowers who complete housing counseling within 12 months prior to closing may be eligible for a loan-level price adjustment credit' · Checked October 17, 2026

7. According to Freddie Mac, CreditSmart is a suite of completely free financial and homeownership education resources; CreditSmart Homebuyer U, offered in English and Spanish, is a self-paced homeownership education course that leads to a certificate aligned with the National Industry Standards, and that certificate meets Freddie Mac's homeownership education requirement for Home Possible and HomeOne mortgages; CreditSmart Essentials, by contrast, is not a homeownership education course.

   Sources 5 · CreditSmart, Frequently asked questions: 'CreditSmart is a suite of free, comprehensive financial and homeownership education resources'; 'No, CreditSmart resources are completely free'; 'CreditSmart Homebuyer U, offered in English and Spanish, is a self-paced homeownership education course for consumers that leads to a certificate of completion that aligns with National Industry Standards on Homeownership Education and Counseling'; 'The CreditSmart Homebuyer U certificate meets the Freddie Mac homeownership education requirement for Home Possible'; 'it's not a homeownership education course' · Checked October 17, 2026

8. According to the CreditSmart Homebuyer U page, you can pause and pick up where you left off on several devices; the printable certificate is available in English; the certificate can be delivered to your lender, housing professional and co-borrower; lessons are in English and Spanish; and topics run from an introduction to the homebuying process, managing money and credit to getting a mortgage, finding a home and closing, and preserving homeownership.

   Sources 6 · CreditSmart Homebuyer U: 'Pause when you need to and pick up where you left off-on multiple devices'; 'Printable certificate available in English'; 'Certificate delivery to your lender, housing professional and co-borrower'; 'Lessons available in English and Spanish'; 'Overview & Introduction to the Homebuying Process'; 'Managing Your Money'; 'Your Credit and Why It Is Important'; 'Getting a Mortgage'; 'Finding a Home and Closing on a Loan'; 'Preserving Homeownership' · Checked October 17, 2026

9. For example, the Texas housing agency (TDHCA) says completing an approved homebuyer education course is required to qualify for assistance through its homebuyer program.

   Sources 7 · TDHCA Homebuyer Programs: 'Completing an approved homebuyer education course is required to qualify for assistance through The TDHCA Homebuyer Program' · Checked October 17, 2026

10. For example, the Connecticut housing agency (CHFA) says its homebuyer education workshops are free; that they are given on weekday evenings and Saturdays by participating HUD-approved counselors; that some agencies offer virtual workshops and some offer workshops in Spanish; that one of its workshops is required for anyone getting a CHFA loan; and that those who complete it receive a certificate of completion to meet that requirement.

    Sources 8 · CHFA, Homebuyer / Rental Education: 'CHFA's free homebuyer education workshops can make this complicated process easier to understand'; 'Classes are offered on weekday evenings and Saturdays throughout the State by CHFA Participating - HUD Approved Counselors'; 'some agencies offer virtual workshops, and some agencies offer workshops in Spanish'; 'One of the following Homebuyer Education Workshops is required for anyone obtaining a CHFA loan'; 'Applicants who complete this course will be provided with a Certificate of Completion to satisfy the education requirement of their CHFA mortgage loan financing' · Checked October 17, 2026

11. The Connecticut housing agency (CHFA) says at least one CHFA loan applicant must attend its pre-closing workshop unless they completed its pre-purchase class within the past 12 months; and that the pre-purchase workshop is free to anyone living in Connecticut.

    Sources 8 · CHFA, Homebuyer / Rental Education: 'At least one CHFA loan applicant is required to attend this course unless they've completed the Pre-Purchase class within the past 12 months'; 'is offered free of charge to anyone residing in the state of Connecticut' · Checked October 17, 2026

12. According to the CFPB, many states and local organizations offer programs to help first-time buyers with a down payment or closing costs; to find them, it suggests looking up a HUD-approved housing counseling agency in your area or calling the HOPE Hotline, 24 hours a day, at (888) 995-4673.

    Sources 9 · Where can I find information on programs for first-time home buyers? (last reviewed Sept. 13, 2024): 'Many states and local organizations offer programs to help first-time buyers with a down payment or closing costs'; 'look up a HUD-approved housing counseling agency in your area'; '24 hours a day, seven days a week, at (888) 995-HOPE (4673)' · Checked October 17, 2026

13. According to the CFPB, housing counselors across the country give advice on buying a home, renting, defaults and credit issues; the agencies on its list are HUD-approved and offer independent advice, often at little or no cost; and not every counselor offers every service, so check each agency's list of services.

    Sources 10 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you'; 'Not every housing counselor offers all services, so be sure to check the list of services offered by each agency' · Checked October 17, 2026