Financial Education

Budgeting and Spending Plans: Learning to track income and expenses, create a realistic budget, and identify areas to reduce spending, which is vital for saving for a down payment and managing monthly housing costs.
Credit Management and Improvement: Understanding how credit scores impact mortgage qualification and interest rates, as well as strategies for establishing or improving credit, including debt reduction and dispute resolution.
Savings Strategies: Developing short-term and long-term savings plans for emergencies, down payments, closing costs, and future home repairs or renovations.
Debt Management: Learning techniques to manage and reduce existing debt, which improves creditworthiness and frees up funds for housing expenses.
Understanding Financial Products: Gaining knowledge about different financial instruments like loans, savings accounts, and investment options, and how they relate to homeownership.

Benefits for first-time homebuyers

Increased Confidence: Participants often feel more confident and less overwhelmed about the homebuying process, as they gain a deeper understanding of the financial aspects involved.
Access to Resources and Tools: Workshops may provide tools such as mortgage calculators, budget templates, and guidance on locating suitable lenders or real estate agents.
Making Informed Decisions: Attendees are better equipped to evaluate their financial situation, compare mortgage options, and choose the most suitable loan product for their needs, thereby reducing the risk of financial distress.
Eligibility for Assistance Programs: Many down payment assistance programs, government loans, and grants require completion of a HUD-approved financial literacy or homebuyer education course, according to eHousingPlus.
Long-Term Homeownership Sustainability: Studies indicate that participation in homeownership education programs leads to lower delinquency and foreclosure rates, higher financial literacy, and increased homeowner satisfaction, according to research cited by the Durham Habitat for Humanity

Oliver Hartman