Homebuyer Education
IHDA Programs require all homebuyers take a pre-purchase education course before taking the big step. This helps ensure that you're financially prepared with the information you need to be a homeowner!
Pre-Purchase Education Providers
Please note, this list is not exhaustive and is provided as a courtesy to lenders and homebuyers. You are not required to select from one of the courses below. While MGIC is still an eligible source for MI coverage, homebuyer education courses provided by MGIC do not satisfy these requirements.
To satisfy the IHDA Mortgage pre-purchase education requirement, the course must:
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Meet standards defined by HUD, or the National Industry Standards for Homeownership Education and Counseling
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Be completed by all borrowers listed on the transaction
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Provide a certificate with the borrower(s) name(s) and completion date. For transactions with multiple borrowers, the names can be on the same certificate (if allowed by the education course) or separately on multiple certificates. Either is acceptable so long as all borrowers are represented.
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Be completed prior to closing and no more than one year prior to the closing date
For two-unit properties:
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FNMA loan type: Landlord Education is required in addition to homebuyer education. Please note that there are no requirements on who provides the education for the borrower. Fannie Mae has also created this document, which can be used in conjunction with the landlord education or as an extra resource for the borrower. For transactions with multiple borrowers, the names can be on the same certificate (if allowed by the education course) or separately on multiple certificates. Either is acceptable so long as all borrowers are represented.
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FHLMC loan type: Landlord Education is required in addition to homebuyer education. All borrowers must complete a course prior to closing as evidenced by a certificate. For transactions with multiple borrowers, the names can be on the same certificate (if allowed by the education course) or separately on multiple certificates. Either is acceptable so long as all borrowers are represented.
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FHA or VA loan type: Landlord Education is not required, but encouraged by IHDA Mortgage.
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USDA: Two-unit property types are not allowed.
Freddie Mac Credit Smart Homebuyer U*
Course Type:
* Freddie Mae Credit Smart Essentials does NOT fulfill the requirement, course must be Credit Smart Homebuyer U.
