---
kind: "section"
citation: "7 C.F.R. § 3550.11"
title: "7"
number: "3550.11"
heading: "State Director assessment of homeownership education."
url: "https://uscodex.org/cfr/7/3550.11"
---

# §3550.11. State Director assessment of homeownership education.

- (a) State Directors will assess the availability of certified homeownership education in their respective states on an as-needed basis but at a minimum every three years and maintain an updated listing of providers and their reasonable costs.
- (b) The order of preference for homeownership education formats will be determined by the Agency based on factors such as industry practice and availability.
- (c) Homeownership education must include a letter or certificate of completion and be provided by homeownership education counselors that are certified by any of the following:
  - (1) The Department of Housing and Urban Development (HUD);
  - (2) NeighborWorks America (NWA);
  - (3) The National Federation of Housing Counselors (NFHC);
  - (4) National American Indian Housing Council (NAIHC); or
  - (5) **The State Housing Finance Agency or other qualified organization approved by the State Director.**
- (d) The provider will issue a letter or certificate of completion to document that the borrower has satisfactory knowledge of these minimum topics:
  - (1) Preparing for homeownership (evaluate readiness to go from rental to homeownership),
  - (2) Budgeting (pre and post-purchase),
  - (3) Credit counseling,
  - (4) Shopping for a home,
  - (5) Lender differences (predatory lending),
  - (6) Obtaining a mortgage (mortgage process, different types of mortgages),
  - (7) Loan closing (closing process, documentation, closing costs),
  - (8) Post-occupancy counseling (delinquency and foreclosure prevention),
  - (9) Life as a homeowner (homeowner warranties, maintenance and repairs),
- (e) The provider may tailor the homeownership education training to the needs of the borrower to ensure satisfactory knowledge of the topics listed in [paragraph (d)](#d) of this section.

## Notes

### Amendments

[72 FR 5156, Feb. 5, 2007, as amended at 87 FR 6770, Feb. 7, 2022]

### Authority

Authority: 5 U.S.C. 301; 42 U.S.C. 1480.

### Source

Source: 61 FR 59779, Nov. 22, 1996, unless otherwise noted.

### Amendments

[72 FR 5156, Feb. 5, 2007, as amended at 87 FR 6770, Feb. 7, 2022]