June 9, 2011
One of the most important things a new house hunter should know about FHA home loans is that they don’t have to work through the complex process of applying for a loan, finding a home, or closing the deal on their own.
The FHA knows the position first-time home buyers are in and offers plenty of advice and assistance. Did you know the FHA makes referrals to agency-approved counselors?
According to the FHA official site, you can get advice on buying a home, credit, the cost of buying versus renting and much more. You can even ask for a counselor referral for foreclosure avoidance issues and refinancing topics. The Department of Housing and Urban Development sponsors housing counseling agencies all over the United States so that counseling can be provided either free or at low cost.
Some services, like reverse mortgage counseling, does charge a fee. Other types of housing counseling (as referred by the FHA) is free. According to the official site at FHA.gov, “Foreclosure prevention counseling and homeless counseling services are available free of charge through HUD’s Housing Counseling Program. Housing Counseling agencies participating in HUD’s Housing Counseling Program are not permitted to charge consumers for these specific housing counseling services.”
For other services like pre-purchase and what the FHA calls ‘non-delinquency post-purchase counseling’, a fee may be charged but only if the counseling agency meets a set of conditions which include the requirement NOT to charge those who “demonstrate they cannot afford the fees”.
All counseling fees for FHA-referred housing issues must be reasonable, customary and charged according to the level of services offered.
FHA regulations also state the agency must inform the client as to the fee structure before giving services–you can’t be surprised by fees after you’ve already gotten counseling. Learn more about counseling options by calling the FHA at (800) 569-4287.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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