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Lenders,
This is a reminder that homebuyer education is required for all Alabama Housing Finance Authority (AHFA) programs.
Per the First Step Manual, Section III - Originator Processing Guide, H. Homebuyer Education:
At least one eligible mortgagor must complete an AHFA-approved homeownership education course prior to loan closing. The originator must submit the certificate of completion with the closed loan file. Certificates of completion must be dated within one year of loan reservation to AHFA. Acceptable forms of counseling include face-to-face, various online courses, and the Keys to Homeownership book published by the National Foundation for Credit Counseling.
Per the Step Up Program Manual, Section II – Mortgagor Eligibility Evaluation, D. Homebuyer Education:
At least one eligible mortgagor must complete an AHFA-approved homeownership education course prior to loan closing. The Originator must submit the certificate of completion with the closed loan file. Certificates of completion must be dated within one year of loan reservation to AHFA. Acceptable forms of counseling include face- to-face, various online courses, and the Keys to Homeownership book published by the National Foundation for Credit Counseling.
Acceptable Education Formats:
- Face-to-face counseling
- Approved online courses
- Keys to Homeownership (National Foundation for Credit Counseling)
Lenders must:
- Ensure homebuyer education is completed before closing.
- Verify the certificate is dated within one year of loan reservation.
- Include the certificate with the closed loan file submitted to AHFA.
Loans that do not meet this requirement may be subject to delays or ineligibility.
Please reference the current First Step and Step Up Program Manuals in AllRegs for further details.
Thank you for your continued partnership.
If you have any questions, please contact Tony Lee tlee@ahfa.com.
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