Few things bring more satisfaction than buying a new home: the sense of accomplishment, the stability offered by homeownership, the joy of creating memories. The homebuying process can also be a daunting task that leaves people feeling overwhelmed and often in over their heads. Recognizing this, in 1968 the U.S. Department of Housing and Urban Development (HUD) authorized public and private organizations to provide housing counseling services.
Does Homebuyer Education Make a difference for homebuyers? According to research it does. In 2010, research in Indiana showed that participating in homebuyer education decreased likelihood of delinquency and default by 10.7%. In 2013, a large scale study conducted by Neighborworks America looked at 75,000 borrowers and determined that those who had participated in homebuyer education were 1/3 less likely to enter foreclosure. Data collected from the Tennessee Housing Development agency between 2002 and 2009 showed that borrowers who participated in homebuyer education were 6.9% less likely to default on their loans.
Homebuyer education is a proven method for making borrowers more successful in homeownership. This also leads to more stable housing markets which in turn lead to a more stable economy. Homebuyer education is a worthy investment and is required by many mortgage programs. Click here to learn more about our program!