The Homebuyer Course You Actually Need
Several affordable loan programs require homeownership education before you sign, and only one borrower on the loan has to complete it.
Only one borrower has to complete the course, and the agency versions cost nothing.
This is a condition of eligibility on certain affordable loan programs, not a product you apply for.
- At least one occupying borrower must complete the course, not everyone on the loan
- The condition applies on purchase transactions when all occupying borrowers are first-time homebuyers
- Fannie Mae’s free, online homeownership education course is HomeView, Modules 1 through 7
- Freddie Mac’s free financial literacy curriculum is CreditSmart, and CreditSmart Homebuyer U comes with a certificate
- Most programs require completion prior to the Note date, and others require it prior to closing
- Housing counseling through a HUD-approved agency that meets HUD standards is also accepted
Only one borrower has to finish the course
Fannie Mae’s HomeView course is free and online
A HUD-approved counseling agency also counts
The course covers budgeting and home maintenance
Freddie Mac’s CreditSmart is free as well
Your completion certificate goes in the loan file
What is the Saxton Homebuyer Education Requirement?
Homeownership education covers the home-buying process, how to maintain a home, and budgeting.
It is not a Saxton product. It is a condition of eligibility that Fannie Mae and Freddie Mac attach to several affordable loan programs. On purchase transactions, when all occupying borrowers are first-time homebuyers, at least one borrower must complete a Home Ownership Education course, and it must be completed prior to the Note date. The education has to come from a qualified third-party provider, independent of the lender.
Most buyers hear about this late, from a condition on a loan approval, and assume it is a long class with a fee attached. It is neither. Home Ownership Education is education that covers homeownership topics such as the home-buying process, how to maintain a home, and budgeting. Fannie Mae’s HomeView runs Modules 1 through 7 online at no cost. Freddie Mac’s CreditSmart is free as well.
There are real limits. If any occupying borrower has owned a home before, the trigger is not met and the requirement generally does not apply, so ask before you enroll in anything. Saxton cannot provide the course to you. Neither can the seller. Community Seconds and down payment assistance programs can carry a separate counseling requirement through a HUD-approved counseling agency, completed prior to closing.
Why choose the Saxton Homebuyer Education Requirement?
This page is for the buyer who was told a homebuyer course is a condition of the loan and wants to know what counts, who has to take it, and when it is due.
One Borrower Is Enough
When the condition applies, at least one occupying borrower must complete a Home Ownership Education course. Not all of you. If you are buying with a spouse, a partner or a co-borrower, one person taking the course satisfies the requirement for the file. Decide early who that person will be, and put it on their calendar rather than yours.
The Agency Courses Are Free
Fannie Mae’s free, online homeownership education course is HomeView, Modules 1 through 7. Freddie Mac’s free financial literacy curriculum is CreditSmart, and CreditSmart Homebuyer U comes with a certificate at the end. Both are agency courses, both run online, and neither one charges you to take it. If someone is asking you to pay, you have free options.
Finish It Before Signing
On several programs the course must be completed prior to the Note date. On at least one other, housing counseling must have been completed prior to closing. Treat both deadlines the same way and finish before you sign anything. Send the certificate to your loan officer the day you get it, not the week of closing.
Not From Your Lender
Homeownership education must come from a qualified third-party provider, independent of the lender. It must not be provided by an interested party to the transaction, the originating lender or the seller. That rules out Saxton, and it rules out anyone else with a stake in whether your purchase closes.
HUD Counseling Also Counts
Housing counseling through a HUD-approved agency that meets HUD standards is accepted in place of an online course. On at least one manufactured housing program, completion of homeownership education or counseling provided by a HUD-approved counseling agency is the stated path, and that counseling must have been completed prior to closing.
The Standards Are National
Eligible homeownership education must meet the National Industry Standards for Homeownership Education and Counseling. That is the benchmark, and it is why not every course you find online will be accepted. HomeView, CreditSmart and a HUD-approved counseling agency sit inside the standard. Ask before you enroll in anything else.
Hear From Homeowners Like You
Frequently Asked Questions
The questions buyers ask once the course shows up as a condition on their loan.
No. When the condition applies, at least one occupying borrower must complete a Home Ownership Education course. One person finishing it satisfies the requirement for the loan. Pick whoever has the easier schedule over the next few weeks. The other borrowers on the file do not need to enroll, and nothing requires you to sit through it together.
Then the trigger is generally not met. The condition applies on purchase transactions when all occupying borrowers are first-time homebuyers. If one occupying borrower has owned a home before, the education requirement generally does not apply on those programs. Tell your loan officer about the prior ownership early. It can take a step out of your file before you ever start looking for a class.
Fannie Mae’s homeownership education course, HomeView, is free and online, Modules 1 through 7. Freddie Mac’s CreditSmart is a free financial literacy curriculum, and CreditSmart Homebuyer U comes with a certificate. Both are agency courses built for exactly this requirement. If a provider is quoting you a price, stop and ask your loan officer before you pay anything.
On most programs, the course must be completed prior to the Note date. On at least one other, housing counseling must have been completed prior to closing. The safe way to hold both rules in your head is simple. Finish before you sign. Do not schedule the course for the same week as your closing, because certificates do not always issue the moment you click through the last module.
No. Homeownership education must come from a qualified third-party provider, independent of the lender, and it must not be provided by an interested party to the transaction, the originating lender or the seller. Your loan officer can point you to Fannie Mae’s HomeView, Freddie Mac’s CreditSmart or a HUD-approved counseling agency, but the education itself has to come from outside your transaction.
Yes. Housing counseling through a HUD-approved agency that meets HUD standards is accepted. There is a second reason to know this. Community Seconds and down payment assistance programs can require completion of homeownership education or counseling provided by a HUD-approved counseling agency on their own terms, completed prior to closing, separate from what the first mortgage asks for.
The certificate. On at least one program, a copy of Exhibit 20, Homeownership Education Certification, or another document is retained in the loan file, so send yours the day you finish. Separately, Form 1103, the Supplemental Consumer Information Form, must be completed for all borrowers where education or counseling is required. Your loan officer will hand you that one.
Find out what you qualify for
The course is a condition on certain programs, not a product, and it does not change what you qualify for. If you are buying and everyone living in the home is a first-time buyer, plan for it early, take a free agency course, and get the certificate in before you sign. Get a fast, no-obligation pre-qualification today.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Rural housing financing is governed by USDA area loan limits and income limits rather than by conforming loan limits. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.