Buying a home is one of biggest financial commitments you can make.

Do I need homebuyer counseling or homebuyer education?
Homebuyer counseling and homebuyer education courses cover slightly different topics and may be required at different stages of the homebuying process.

Check with your lender before starting any homebuyer counseling or education course to ensure that it will satisfy the requirements of your program.

Homebuyer counseling:

• Is provided one-on-one with a counselor or as an instructor-led course,
• Must be completed before closing and preferably before selecting a home, and
• Is highly comprehensive with focus on understanding the entire mortgage process and the responsibilities of homeownership.

Homebuyer counseling and education can help anyone who plans on purchasing a house in the near future, but is especially helpful for consumers who:

• Are struggling to build a large enough down payment
• Worry that their credit may not be strong enough to qualify for a prime rate mortgage
• Don't understand the monthly costs associated with owning a home
• Need to complete a homebuyer counseling or education course in order to qualify for a specialized loan program

Prospective homeowners have two primary options: one-on-one homebuyer counseling and self-guided homebuyer education courses.

Homebuyer Counseling

During a one-on-one homebuyer counseling session you'll work together with a trained counselor to review your finances and formulate a plan to help you find a home you can afford. The goal is to help you understand where you stand and what steps you'll need to take in order to save an adequate down payment, qualify for an affordable mortgage, and successfully manage the month to month costs of homeownership.

If applicable, your counselor may discuss available loan programs and their requirements.

You should leave your session with a budget, a clearly defined plan of action, and a certificate of completion (if applicable).

Online Homebuyer Education Courses

In additional to live, one-on-one homebuyer counseling, MMI also offers online homebuyer education courses. 

What types of homebuyer counseling and education do you offer?
We offer a variety of homebuyer counseling and education programs to satisfy most loan requirements.

These courses are self-paced, engaging, and mobile-friendly. All courses are available in both English and Spanish. Each course is designed to prepare you for every facet of the home buying process. You can sign-up and begin a course at any time.

After successfully completing your program, you’ll receive an action plan and a homebuyer counseling and education certificate.

Check with your lender to see what type of certificate you need before starting.

What is Down Payment Assistance?
Down payment assistance is usually a loan or grant provided by a third party, although some assistance programs offer tax breaks instead. These programs are typically funded by government agencies, charities, or private foundations. Assistance can work in a variety of ways.

For example, the Chenoa Fund is a program that offers eligible FHA-insured home loan borrowers 3.5% of the home’s purchase price as a 0% interest second mortgage with a 30-year term. This interest-free second mortgage helps cover the cost of the down payment and is typically forgiven as long as the borrower makes 36 consecutive, on-time payments on the first mortgage.

Most programs are similar, offering funds at little or no interest to help cover the down payment. They may even offer loan forgiveness under certain circumstances.

Eligibility

• A homeowner is eligible for counseling if
  the loan is secured by the homeowner’s principal residence.
• the home loan is not assisted by the Farmers Home Administration.
• the homeowner is, or is expected to be, unable to make payments, correct
  a home loan delinquency within a reasonable time, or resume full home
  loan payments because of a loss in income owing to
  –     an involuntary loss of, or reduction in, the homeowner’s employment, the homeowner’s self-employment, or income from the pursuit of the homeowner’s occupation; or
  –     any similar loss or reduction experienced by any person who contributes to the homeowner’s income            Contents of notice :
• The notice must:
  1. notify the homeowner of the availability of any homeownership counseling offered by the creditor.
  2. provide either a list of HUD-approved nonprofit homeownership counseling organizations or the toll-free number3 HUD has established through which a list of such organizations may be obtained.
  Timing of notice:
  1.The notice must be given to a delinquent homeowner borrower no later

Who Qualifies for Down Payment Assistance?
Down payment assistance programs are highly localized, so the required qualifications will be unique to each program. However, a few common qualifications apply to many programs, including the following:

• You’re a first-time homebuyer
• You’re a low-income borrower (check the program’s income requirements)
• The down payment assistance program is directly connected to select loan programs
• You may be required to use a specific list of participating lenders for your mortgage

Additionally, most programs require that the property being purchased will be your primary residence. In other words, people looking to buy a second house or a rental property wouldn’t qualify for down payment assistance.

What is Required to Be Accepted into a Program?
Different down payment assistance programs have different requirements. Some may require that you complete first-time homebuyer counseling (or an online course). Some may require that you participate in a support program to ensure that you successfully manage your payments. Some may offer benefits for consistently making full, on-time payments (or penalties for failing to do so).

The online course prices range from $35 to $99.

Pre-Purchase / First Time Homebuyer Counseling: Fee is $149.
Intended for consumers planning on buying a home and interested in understanding more about the process. (Includes a complete review of the homebuyers’ current finances and an overview of the costs and considerations that come with owning a home.)

High-Cost Loan Counseling: Fee is $159.
Intended for consumers closing on a “high-cost” mortgage. The Home Ownership and Equity Protection Act (HOEPA) defines high-cost mortgages as loans where the annual percentage rate (APR) is substantially higher than the average prime rate offer for similar mortgages. (HOEPA requires that consumers receive homebuyer counseling to understand the costs and other implications of such a loan before the loan can be closed.)

HomeREACH Mortgage Prep Program: Fee varies on total # of check-ins.
Designed for consumers interested in homeownership who may not currently qualify for a mortgage because of credit issues, a poor debt-to-income ratio, or other reasons.
Begins with an initial session to determine what needs to be addressed, followed by monthly check-ins to monitor progress, and capped with a final counseling session when you’re ready to purchase a home.

Online homebuyer education courses
Self-paced online homebuyer education courses are available to begin anytime. For program details, visit our course listing.

Check with your lender before beginning an online homebuyer education course to ensure that it satisfies the requirements of your loan program.

Note: All online homebuyer education course links will direct you to another website.

Essentials for Buying a Home ($45) - This program meets HUD and National Industry Standards for homebuyer programs, and to provide the tools and education you need for successful long term homeownership. Learn the ins and outs of the home buying process from the experts at MMI.

Framework($75) - The Framework program meets all HUD and National Industry Standards for homebuyer programs and is mobile-friendly for your convenience. Learn how much you can afford, how to choose the best loan for you, how to close on your home, and more.

eHome America ($99) - This program meets the National Industry Standards for homebuyer education and designed to give you the knowledge to confidently manage the homebuying process. If you're a first-time homebuyer looking to understand the process or need a homebuyer education certificate in order to qualify for a loan, eHome America is the course for you!