Housing Counseling FAQ

If an entity requires housing counseling as a condition of receiving downpayment assistance, and the client uses FHA financing, must the housing counseling be performed by a HUD certified housing counselor?

Date Published: December 2016

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No. The Final Rule requires certification for HUD programs where housing counseling is required by a grantee or Subgrantee of a HUD program as a condition of receiving “assistance under the HUD program,” but an FHA mortgage insurance guaranty is not considered “assistance under the HUD program.” Therefore, housing counseling provided in this situation does not have to be provided by a HUD certified housing counselor (unless specifically required by the FHA program, such as HECM or the Back to Work – Extenuating Circumstances Initiative, or unless the downpayment assistance is funded through a covered HUD program).

Tags: Housing Counseling Program Requirements on Other Specific HUD Programs - FHA - Other