Mandatory Pre-Purchase Housing Counseling

Mandatory Pre-Purchase Housing Counseling for all MFA borrowers:

In the past, MFA has only required pre-purchase homebuyer counseling for homebuyers that used down payment assistance in the form of a second lien. Most homebuyers received counseling through an on-line pre-purchase counseling class offered through a private mortgage insurance company. While any form of pre-purchase counseling is better than nothing, the pre-purchase counseling offered through the PMI providers does not provide much depth of content.  

Face to face pre-purchase housing counseling, either in a group or one on one setting provides the highest level of educational content and is the preferred method of housing counseling. But, it could be difficult for many homebuyers to gain access to the counseling sessions, due to scheduling issues or in rural areas.

It has been proven over time that first-time homebuyers who receive pre-purchase homebuyer counseling have lower overall delinquencies and are better prepared for sustainable homeownership. MFA strongly believes that it is both appropriate and necessary to prepare a first-time homebuyer for success in homeownership.

Effective Monday, March 5^th, all MFA borrowers will be required to take pre-purchase homebuyer counseling. The pre-purchase homebuyer counseling will be either;

• Face to Face pre-purchase housing counseling provided in either a classroom or one-on-one setting by a HUD approved housing counseling agency, or

• Through the eHome America on-line housing counseling program.

All loans reserved after Monday, March 5^th will be required to receive pre-purchase homebuyer counseling from either of these two approved sources.

eHome America On-Line Pre-Purchase Housing Counseling Program:

E Home America is an on-line housing counseling program that was developed by NeighborWorks America and Community Ventures Corporation (“CVC”), a NeighborWorks Chartered Member based in Lexington, Kentucky. The program is used by over 100 housing counseling agencies through 40 states to provide a high quality housing counseling option to potential homebuyers that are unable to attend a face to face counseling session.

• The counseling program takes approximately 8 hours to complete.

• The homebuyer can complete the counseling program at their own pace. They can stop and start the program at their convenience.

• The program uses the “Realizing the American Dream” pre-purchase housing counseling curriculum developed by NeighborWorks America.

• The program is presented in both Spanish and English.

• Content is provided through over 40 animated videos or through a textbook format, with quizzes throughout the course.

• Borrower is able to print a certificate of completion at the end of the course.

The cost of the program is $45, paid at the time the course is taken. The $45 can be credited towards the $500 out-of-pocket requirement or it can be reimbursed at closing with down payment assistance.

The following link, which is posted on the MFA web-site, will direct the homebuyer to register for the on-line pre-purchase housing counseling program.

http://ehomeamerica.org/nmmfa

Thank you for participating in MFA’s program.  Should you have any questions, please contact an MFA Homeownership Representative at 1-800-444-6880 or 505-843-6880.