August 11, 2011
It’s easy to get overwhelmed by the details, facts and figures connected to buying a new home.
If you’re new to the FHA home loan application process, there are plenty of unique requirements for FHA home loans not found in conventional mortgages–the protections offered to the buyer and lender alike require some additional learning as you go through the process for the first time.
That’s why the FHA offers help to mortgage loan applicants in the form of HUD-sponsored housing counseling. There are a variety of agencies across the U.S. offering HUD-sponsored counseling services on buying a new home, credit issues related to applying for an FHA mortgage, even foreclosure avoidance and FHA reverse mortgage loan information.
Some housing counseling services are free, while others come as low-cost packages. FHA Reverse Mortgage Loan counseling, for example, does come with a fee in many cases. According to the FHA, “…housing counseling agencies are permitted to charge reasonable and customary fees for other forms of housing counseling and education services, including pre-purchase, reverse mortgage, rental, and non-delinquency post-purchase counseling services, provided certain conditions are met…”
FHA rules add that if a borrower demonstrates a need in accordance with FHA rules, that fee may be waived under the right circumstances.
Some services can never be offered as a for-pay counseling program. FHA rules are clear on the subject of homeless counseling and foreclosure avoidance. “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. Counseling recipients should not pay for these services.”
If you need official information or advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages, call HUD 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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