DPP Homebuyer Education and Counseling
Empowering sustainable homeownership starts with preparation. By supporting education and counseling for new homebuyers, we help ensure that the path to owning a home is built on understanding, stability, and long-term success.
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Homebuyer Education and Counseling Requirements
All homebuyers accessing the Downpayment Plus Program (DPP®) or Downpayment Plus Advantage® Program (DPP Advantage®) are required to complete both pre-purchase homebuyer education and pre-purchase counseling.
Pre-purchase education and counseling requirements include:
- Education must be delivered by a HUD-approved housing counseling agency in pre-purchase homebuyer education, or an online provider approved by FHLBank Chicago.
- Counseling must be delivered by a HUD-approved housing counseling agency in pre-purchase homebuyer counseling.
- Counseling must be completed one-on-one, but does not have to be face-to-face; telephonic or videoconference (e.g., FaceTime, Skype) counseling is acceptable.
- Upon completion of education and counseling, homebuyers will receive one or two certificates of completion (depending on the provider), which must be submitted prior to a member receiving reimbursement for a DPP grant.
- Although participation in education and counseling is strongly encouraged for all borrowers in the household, a certificate of completion is only required for one of the borrowers.
There are three options to meet the pre-purchase education and counseling requirement. These options are the surest way homebuyers and participating members know the education and counseling meets our requirements.
Explore Homebuyer Education and Counseling Options
Option One: A HUD-Approved Housing Counseling Agency
HUD-approved housing counselors can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. The counseling agencies on this site are approved by the U.S. Department of Housing and Urban Development (HUD). Each HUD-approved counselor has undertaken rigorous education and has passed a certification exam. Homebuyers should inquire about the costs of these services prior to receiving them.
Option Two: An Approved Online Provider
Framework connects homebuyers with HUD-approved housing counseling agencies. Complete education online, then schedule face-to-face, phone, or video counseling with a partner agency (response expected within 48 hours). Certificates are issued after counseling.
Cost: $75; additional counseling fees may apply. Fewer partner agencies are available through this option.
eHome America connects homebuyers with HUD-approved housing counseling agencies. Complete education online, then schedule face-to-face, phone, or video counseling with a partner agency (response expected within 48 hours). Certificates are issued after counseling.
Cost: $99; additional counseling fees may apply. Fewer partner agencies are available through this option.
Option Three: Alternatives
Homebuyers may also complete education directly through eHome America or Framework (not via this webpage) or through a partner portal, with counseling provided by a HUD-approved housing counseling agency. Costs may vary.
Up to $500 of the DPP grant may be used for pre-purchase education and counseling costs. Any amount the homebuyer pays toward this requirement can also count toward their $1,000 minimum contribution, if properly disclosed on the settlement statement.
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Additional Information
These requirements are designed to prepare consumers to successfully navigate the homebuying process. In selecting an option, it is important to also consider the pre-purchase education and counseling requirements, if any, of the first mortgage lender and/or secondary purchaser.
Questions
If you are a member of FHLBank Chicago and have questions related to the DPP programs, please contact FHLBank Chicago Community Investment at 312-565-5824 or [email protected].
Are you a homebuyer? Please contact a participating lender to inquire about the DPP grant.