To participate in Home$tart, homebuyers must successfully complete a Seattle Bank
approved homebuyer education program. The program must be provided by, or based
on a program provided by, an organization recognized as experienced in homebuyer
or homeownership counseling, such as HUD or a state or local agency. In addition:
- The organization or educator providing the instruction must be certified in homebuyer
education training by the Neighborhood Reinvestment Corporation (NeighborWorks),
a nationally recognized nonprofit that has established community partnerships to
support a national standard for the homebuyer education process.
-OR-
- The organization or educator must provide a minimum of eight hours of training,
including at least one hour of face-to-face, one-on-one counseling. The curriculum
MUST cover each of the following topics:
- Preparing for the financing, purchase, and maintenance of a home
- Budgeting and credit
- Characteristics of predatory lending*
Homebuyer Education Curriculum
NeighborWorks notes the following topics as critical to the comprehensive financial
literacy and education of homebuyers. These topics are consistent with the enhanced
homebuyer education requirements for the Home$tart Program.
Preparing for the financing, purchase, and maintenance of a home:
- An overview of the home-purchase process
- The advantages and disadvantages of renting versus owning a home
- Possible barriers to homeownership
- Calculations and assessments of current debt-to-income ratios
- Income stability and employment issues
- Information on obtaining a copy of a credit report
- Loans, mortgages, and the lender’s perspective
- Preparation for closing costs
- Non-conventional loans and special mortgage assistance programs
- What to do if a loan is denied
- Types of houses: pros and cons of single family vs. duplex
- The search for the right house: balancing dream vs. reality
- Using realtors and other ways to search for a house
- House inspections: “red flag” issues and when to call in an expert
- When to retain an attorney
- Neighborhood evaluation and advantages of the target neighborhood
- Protecting your investment (insurance issues, smoke detectors, etc.)
- Home maintenance and repairs that homeowners can do
- Selecting and working with contractors
- Value-added improvements
- Being a good neighbor and being involved with the community
- Home equity loans, appraisals, and property tax issues
- What to do if you can’t make a payment
Budgeting and credit:
- Basic financial planning and money management
- An overview of credit and credit reports
- Assessment of individual credit reports
- Steps to repair credit
- Affordability issues, such as savings, down payment, debt-to-income/housing ratios
- Development of a financial resume
- Successful money management and setting up a realistic budget
- Early warning signs of debt problems
- Pros and cons of refinancing for debt consolidation
- Banks and basics of lender qualification
- Taxes and insurance
*Characteristics of predatory lending:
- The form and context in which the lender provided or withheld information from prospective
borrowers
- Ability of the borrower to freely choose not to take the loan or to choose from
competing products
- Whether the lender targeted a vulnerable population or protected class
- Intentional or systematic patterns of selling over-priced loans to populations whose
mental, physical or intellectual status makes them vulnerable to the lenders’ sales
tactics
For detailed information regarding program requirements, please refer to our Home$tart and Home$tart Plus 2009 Member Policies and Procedures
(pdf),
or contact Community Programs Analyst
Craig Horton, (206.340.2436).