First-Time Homebuyer Education Requirement 2026: Which Programs Require It

Homebuyer education courses are designed to prepare buyers for the responsibilities of homeownership. For most programs, completion is either required or results in a benefit like reduced PMI or a rate discount. MLOs need to know which programs mandate it, what counts as satisfying the requirement, and when to bring it up in the pre-application conversation.

Programs That Require Homebuyer Education

• ✦Fannie Mae HomeReady: requires at least one borrower who is a first-time homebuyer to complete the Framework homeownership course or an equivalent HUD-approved counseling course. Completion certificate must be in the file prior to loan approval.
• ✦Freddie Mac Home Possible: requires homebuyer education for all first-time homebuyers. CreditSmart Suite or a HUD-approved course satisfies the requirement.
• ✦Most DPA programs: state housing finance agencies and local DPA programs typically require homebuyer education as a condition of receiving assistance. Requirements vary by program.
• ✦FHA for manual underwriting: FHA does not universally require homebuyer education, but it is a compensating factor in manual underwriting that can influence approval.

What Satisfies the Requirement

• ✦Framework: Fannie Mae's preferred online course. Completion generates a certificate that is uploaded to the file.
• ✦CreditSmart: Freddie Mac's course. Available online in English and Spanish.
• ✦HUD-approved counselor certificate: individual counseling with a HUD-certified housing counselor generates a certificate of completion that satisfies most program requirements.
• ✦In-person group courses: many housing agencies offer in-person or hybrid courses. The certificate from the agency satisfies the requirement for most programs.

Cost and Timing

• ✦Framework costs $75 per person. Some lenders subsidize this cost for HomeReady borrowers.
• ✦CreditSmart is free.
• ✦HUD counseling fees vary by agency. HUD prohibits agencies from refusing service based on ability to pay.
• ✦Timing: complete the course before the loan enters underwriting. A missing education certificate is a common PTD condition that delays closings.