Homebuyer education helps buyers prepare for process of purchasing a home and the challenges of owning a home. For some the class is required, for others it’s a great tool to help you in the purchase of a home.
For those using first time homebuyer programs, the class is required. There are more than one class and the program you use will determine what class is required. In Minnesota, there are several programs geared towards helping you purchase a home, some also have down payment assistance available. If you are using MN Housing’s programs to purchase a home, you will need to attend an eight hour class in person. The class is called Homestretch and is available in many different areas and at different times. You can also take Fannie Mae’s Framework’s program. The program with Fannie Mae is online and will cost $75 but for many, it’s a great option since it is online.
There are other mortgage options available depending on where you are buying. Most of those programs require either Home Stretch or Frameworks. In Dakota County if you take the class online, you will also need to meet with the financial counselor at the CDA office for individual counseling. If you are in Scott County, you can take a class with Scott County HRA and you may be able to qualify for a $4000 grant. This class is longer than the Home Stretch class, but it allows you to get a grant and not just assistance that has to be paid back.
There are two other programs available through Fannie Mae and Freddie Mac. Both allow you to purchase a home with 3% down, both require a first time homebuyer class. Fannie Mae requires the Framework class online. Freddie Mac will allow you to take a free class through their website called Credit Smart. They also will accept some of the classes offered by mortgage insurance companies -also free.
For those purchasing their first home or if you have not bought a home in several years, taking a class is a great idea. I teach the mortgage section of the Homestretch class for Dakota County CDA and frequently will have students say they wish they had taken the class sooner. Many wait until they find out they need the class for a specific program. Those students will wish they had the information earlier in the process. Some attend the class as it’s a requirement, others are there to learn what options they have. In any situation, the class will help you learn about mortgages, the purchase process, credit and budgeting and also home inspections – things to look for in your home search and also things to do to maintain your home.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
