What Is Housing Counseling?

🌱 Housing counseling services help homebuyers, homeowners, and renters find, acquire, and maintain their housing. Th🃏ese services often work with people who have past or present financial struggles.

Housing counselors can help you formulate a budget and create a plan to improve your situation. They may of✅fer guidance on buying a home, renting, avoiding foreclosure, preventing homelessness, or addressing unfair housing practices, as well as credit issues and reverse mortgages.

Here’s what to know about housing counseling services, how they work, whaওt they cost, and where to find a༒ssistance.

Who Is Eligible for Housing Counseling?

There is no one set of eligibility requirements to qualify for housing counseling services. “Participants do not need to meet any specific income thresholds or show proof of financial struggles,” said , departmental analyst and HUD grant manager at the Michigan State Housing Development Authority (MSHDA). ♉

Instead, housing counselors work with a broad range of people, including first-time homebuyers, existing homeowners, renters, people considering a 澳洲幸运5开奖号码历史查询:reverse mortgage, people with past cಞredit iﷺssues, and people experiencing homelessness.

The goal of housing counseling services is to help broad♌en access to housing and assist clients with overcoming financial obstacles. 

Services Provided by Housing Counseling

Housing counselors commonly offer the following service🍃s to help you buy or keep your home or find suitable housing.

First-Time Homebuyer Education

If you’re planning to 澳洲幸运5开奖号码历史查询:buy your first home, you could seek assistance from a HUD-🃏approved housing counselor for guidance. These counselors can educate you on the homebuying process, evaluate your finances to help determine how much house you can afford, and provide insight into mortgage options.

“If you’re dealing with existing debt that could prevent you from qualifying for a mortgage loan,” Depotty said, “housing counselors can even create a customized path to turning a🐻 mortgage denial into an approval.”

Foreclosure or Eviction Prevention

Those struggling to make their mortgage or rent payments could benefit from working with a housing counseling service that specializes in 澳洲幸运5开奖号码历史查询:foreclosure prevention. Fortunately, HUD-approved housing counselors offer foreclosure and eviction prevention services at no cost.

Counselors can help you find different forms of assistance and look at your financial situation to determine the best path forward. Some may also work with your landlord or mortgage servicer on your behalf to see if you can pause your payments for a set period or modify your loan term. 

Specialty Mortgage Education

Housing counseling services may also offer specialty mortgage education for homebuyers considering 澳洲幸运5开🍌奖号码历史查询:Federal Housing Administration (FHA) or 澳洲幸运5开奖号码历史🌠查询:U.S. ✤Department of Veterans Affairs (VA) loans. These loan programs are designed for low- to midd♔le-income homebuyers and homebuyers affiliated with the U.S. milita𒅌ry, respectively, and they have different requirements than conventional mortgage loans. 

Likewise, seniors considering reverse mortgages could also benefit from working with HUD-approved housing counselors. 澳洲幸运5开奖号码历史查询:Reverse mortgage counselors can explain the benefits𝔍 and drawbacks of𓃲 these types of loans to help you decide if they’re right for you. They could also offer insight into alternatives. 

Homeless Counseling

If you’re currently homeless or at risk of losing your housing, a housing counselor might be able to help you formulate a plan to find or maintain a suitable home. They can provide guidance on available programs nearby and affordable housing options and evaluate your finances to help you formulate a savings plan. You won’t pay a fee for these services.

How to Find a Housing Counselor

If you’re seeking housing counseling, working with an organization certified by HUD is generally the best approach. Counselors at HUD-approved organizations receive specialty training and certification to help ensure they’re able to provide the best possible advice to people in need. They also can’t charge fees for certain services, and the fees they do charge must be reasonable.

You can input your information into the HUD database, including the type of assistance you need, and search for a service in your area. The database also allows you to specify if you want face-to-face counseling, phone counseling, or counseling via video conference. 

Price of Housing Counseling

By law, HUD-affiliated housing counselors must offer certain services for free, including homelessness, eviction, and foreclosure prevention plans. Other services come at a cost, though this cost is typically reasonable and affordable. Services that may have fees include guidance and action plans related to:

• Buying a home
• Reverse mortgage
• Renting
• Non-delinquency post-purchase counseling

Per federal regulations, housing counselors still need to provide guidance if you can’t afford to pay their fees. If you’re thinking about working with a housing counselor, they must provide fee information upfront so you can determine if the cost of their services aligns with your budget.

Tips to Get the Most Out of Housing Counseling

• Seek help from a housing counselor as soon as possible: They can assist you if you’re struggling to make your mortgage payments, facing eviction, or looking for first-time homebuyer programs in your area.
• Choose a HUD-certified counselor: Opting for a HUD-certified counselor will ensure you receive the best possible guidance at a reasonable cost or no cost.
• Provide any relevant paperwork: Share copies of your loan documents, letters from your lender, or other relevant paperwork with your housing counselor. Doing so will provide them with important insight into your situation.
• Understand their limitations: Housing counselors provide valuable assistance, but they can’t eliminate certain issues entirely. If you’ve 澳洲幸运5开奖号码历史查询:fallen way behind on your mortgage, for instance, your lender could still foreclose on your home even if you’ve sought assistance from a housing counselor.

Frequently Asked Questions (FAQs)

The Bottom Line

Housing counselors help peopಞle who want to purchase a home or maintain their home. They provide several types of assistance, including foreclosure prevention, homebuyer education, specialty mortgage education, and more. If you’re coꦍnsidering working with a housing counselor, start by searching for HUD-affiliated agencies in your area. Contacting a housing counselor sooner rather than later could help you achieve the best possible outcome.