October 24, 2017

Home Buyer Education Requirement FAQs

Do you have questions about Iowa Finance Authority's home buyer education requirement? The IFA single-family team has compiled a list of frequently asked questions about the requirement for our lender partners. If you don't see the answer to a question you have below, don't hesitate to ask!

‌	Which IFA products is home buyer education (HBE) required?   A: Conventional loans only (HFA Preferred and No MI) - FirstHome or Homes for Iowans

‌	Who is required to take the home buyer education? A: If borrowers are first-time home buyers* then only one of the borrowers must complete the education.

‌	What course is required? A: FinallyHome If the provider of a Community Second program requires its own HUD-approved homeownership education this is acceptable. If a borrower lacks access to the internet, in-person home buyer education with a HUD certified counselor is allowed.

‌	Is there a fee to take the FinallyHome course? A: Yes, there is a fee of $35.

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Why is FinallyHome required? A: Fannie Mae requires Frameworks unless the Iowa Finance Authority has a different requirement. IFA chose to use Finally Home! Home Buyer Education as it is HUD approved, uses “Iowa” forms, is less costly and takes less time than Frameworks, all while providing the tools to successful homeownership.

‌	What is the required deadline for the borrower to complete the home buyer education? A: It must be completed prior to loan closing.

* "First-Time Home Buyer"    Per FMNA Selling Guide: An individual is to be considered a first-time home buyer who: Is purchasing the security property; Will reside in the security property as a principal residence; AND Had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the security property.  In addition, an individual will be considered a first-time home buyer if he or she had no ownership interest in a principal residence (other than a joint ownership interest with a spouse) during the preceding three-year time period.   At-A-Glance If a borrower(s) has owned a home within the past three years, then they would not be a first-time home buyer, which means they would not be required to take home buyer education.

Please contact your assigned  single-family team member  with any questions.