The Benefits of HUD Homeownership Counseling

This spring, we went through the extensive process of applying or recertification as a qualified Housing and Urban Development (HUD) local housing counseling agency. And, by extensive, we mean pages of documentation of how we provide pre-purchase homeownership counseling, to whom and our success rates. 

We do this because HUD certification matters. A blog on Huffington Post discussed why HUD Homeownership Certification was worth the tax-payer investment.

The bottom line is that homeowners counseled by HUD certifiedagencies are successful. The evidence: 

  • Pre- and post-purchase housing counseling performed by HUD-certified professionals leads to better-performing loans made to better-qualified borrowers in practically every economic class, and stronger communities with healthier economies and far fewer foreclosures.
  • HUD's Pre-PurchaseCounseling Outcome Study in 2012 tracked 574 participants at 12-to-18 months after receiving pre-purchase counseling. What the HUD study found was stunning, to say the least: only one out of 574 purchasers had fallen at least 30days behind on their mortgage payments.

One out of 574 purchasers  -- that is a phenomenal success rate, but not surprising when consider you are arming new homeowners with the skills and knowledge to be smart about their homeownership investment.  It is the reason we’re always looking for ways to expand our pre-purchase counseling outreach.

In the coming weeks, we will be rolling out a new program called e-Home.  This online homeownership education program isavailable to people who are considering homeownership. 

The eight-hour course allows potential homeowners to register, pay, and take the course as their time permits, in their place and at their pace. Participants may log in and out as many times as necessary.  Topics covered include:

  •  Are You Ready To Buy A Home
  • Managing Your Money
  • Understanding Credit
  • Getting A Mortgage Loan
  •  Shopping For A Home
  • Keeping Your Home and Managing Your Finances

Our staff will monitor these courses and be available for questions.  At the end of the course our counseling staff  schedule a one-on-one counseling session with participants. Prior to receiving a certificate of completion, participants speak with a counselor to answer any questions or concerns about homeownership.  

Why is this certification important?  Lenders will often require homeowners below acertain income level to attend a homeownership course as a requirement forqualify for a mortgage.  The e-Home course makes it easy for an individual to meet this requirement.  To that end, we are currently working with financial institutions across the community to ensure they are aware of this resource so they may refer participants. 

We’ll be doing an “official” launch of e-Home in June, and we’ll provide additional information at thattime.  In the meantime, if you have questions, please don’t hesitate to contact the office at 515-243-1277 or staff@homeincdsm.org.

 




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