This move will require borrowers to obtain formal education from an approved source when applying for an Fannie Mae-backed mortgage.
The new restrictions will apply to all Fannie Mae-backed mortgages, including those made through the HomeReady and Home Possible programs. These programs are designed to make buying and owning a home more affordable for lower-income families. All borrowers who obtain a loan through these programs must now complete a formal homebuyer education course in order to finalize their mortgage.
The courses required by Fannie Mae cover a wide range of topics related to mortgage financing, such as budgeting, understanding credit, selecting a lender, and shopping for a home. The curriculum also includes topics related to responsible homeownership, such as property maintenance and managing finances. Borrowers must successfully complete the course in order to meet Fannie Mae’s requirements.
There are several organizations that offer formal courses that meet Fannie Mae’s standards. These include nonprofits, government agencies, and private providers. For borrowers looking for an online option, many local organizations offer their courses online.
Fannie Mae hopes that the new requirements will help home buyers make informed decisions about purchasing and maintaining a home. “By providing borrowers with comprehensive education on the home buying process and their responsibilities as a homeowner, we believe they will be better equipped to succeed,” said the company in a statement.
In summary, Fannie Mae recently increased their requirements for homebuyer education for those applying for mortgages through their HomeReady and Home Possible programs. These new requirements state that all borrowers must take a formal educational course that covers topics such as budgeting, understanding credit, selecting a lender and shopping for a home, as well as topics related to responsible homeownership, such as property maintenance and managing finances. Those interested can look to various nonprofits, government agencies, and private providers to take a course that meets Fannie Mae’s standards. With this new requirement, Fannie Mae hopes to ensure that homebuyers will make informed decisions throughout the entire home buying process, from loan application to ownership.
This article was contributed on Aug 01, 2023
