Owning a home is a big responsibility. From buying a home to managing the upkeep of your home, the process can be stressful to deal with. In fact, 29% of homeowners said that homeownership makes them feel anxious and/or stressed. That’s roughly about 1 in 3 homeowners. If you are feeling this stress, then there may be resources that can help. One popular resource for homeowners are housing counselors.
What are Housing Counselors
Housing counselors are certified and trained professionals that the United States Department of Housing and Urban Development (HUD) approves and sponsors. These professionals can help people better understand their finances, get help when facing foreclosure, manage their mortgage, and more. The best part? They are available all across the country! There are some common forms of housing counseling that these specially trained counselors can provide that includes:
- FHA Loan Counseling
- Foreclosure Counseling
- Pre-Purchase Counseling
- Reverse Mortgage Counseling
- USDA Counseling
- VA Counseling
It’s important to note that these counselors can provide support but cannot promise any guarantees. You also want to make sure that you are dealing with an actual HUD-approved counselor and not just some unqualified fake housing counselor.
How to Find a HUD Housing Counselor
If you want to find a housing counselor, there are plenty of ways that you can do that! You could:
- Go online
- Through the phone
- Use an App
Go Online
HUD provides free tools online for people that are searching for a housing counselor. A person can go onto the HUD’s housing counseling home page and review counselors by area through the map or by entering their zip code.
Through the Phone
Another way that you can find a legit HUD housing counselor is over the phone. There are a few numbers that you can reach out to but popular ones are the HOPE hotline and the Consumer Finance Protection Bureau (CFPB). The HOPE hotline number is open 24 hours a day, seven days a week. You can reach out to the HOPE hotline by calling 888-995-4673. For the CFPB number you can reach out to them by calling 855-411-2372.
When reviewing your options, you want to make sure that you don’t rush the process. That’s because it is important to find a housing counselor that specializes in what you need. For example, if you are facing foreclosure then a reverse mortgage housing counselor may not be the best option for you to consider. When you find a housing counselor, you will want to be ready with all relevant information on what you’re dealing with.
Use an App
On the iPhone, there is an app called HUD Counselor Locator. This app is available for free on the app store and can help you locate a housing counselor near you.
What Documents Will You Need?
The exact information will vary depending on the situation. For example, if you are looking for a housing counselor to help you with the homebuying process, you will not be able to show them a foreclosure notice. However, some popular documents that people typically need to provide includes:
- A copy of their driver’s license or other identification documentation
- Pay stubs
- Bank statements
- Tax documents
The better picture that you can provide on your current situation can mean better help. The more relevant information the better!
Are There Housing Counseling Fees?
While many of the services that HUD provides are free, there may be fees that you need to deal with. However, housing counseling agencies that participate in HUD’s Housing Counseling Program can charge reasonable and customary fees for qualifying forms of housing counseling and education services like:
- Pre-purchase counseling
- Reverse mortgage counseling
- Rental counseling
- Non-delinquency post-purchase counseling
They can only charge fees for these services if the following conditions are met:
- Agencies must provide free counseling to people who show they cannot afford the cost
- Agencies must provide information to clients about the fee structure before providing the services
- Fees must align with the level of services provided
It’s important to keep in mind that all housing counseling providers are different. That means that they have their own set of rules and fees but they must follow the guidelines above!
Are There Eligibility Requirements for Housing Counseling?
One of the best parts about housing counseling assistance is the fact that there are no qualification requirements. Even though it can help people that are specifically low income, HUD housing counseling can help everyone that needs guidance!
How Does Housing Counseling Support Those in Need?
There’s a variety of data that shows how much housing counseling can help! For example:
- Foreclosure Prevention Counseling: Individuals that get this type of counseling are 70% more likely to regain control of their payments after going into foreclosure.
- Pre-Purchase Housing Counseling: Individuals that get this type of counseling are 42% less likely to fall into foreclosure and reduce their risk of default by 30%
- Credit Counseling: Individuals that get this type of counseling have on average $11,300 less overall debt
How to Make the Most Out of Housing Counseling
There are some ways that you can make the most out of the housing counseling that you receive. 4 tips that you can consider includes:
- Getting Counseling ASAP
- Understanding the Counselor Limits
- Trying to Meet Face-to-Face
- Having Your Questions Ready
Getting Counseling ASAP
Housing counseling has been proven as effective. For example, those that receive pre-purchase housing counseling are 42% less likely to fall into foreclosure. That means receiving this counseling before getting to the point of foreclosure can make a world of difference! Getting your housing counseling as soon as possible can help you avoid more serious issues in the future.
Understanding the Counselor Limits
Like we said earlier, your housing counselor cannot make guarantees. They are also not super humans that can change your entire situation in an instant. Instead, they can help you through guidance and education. That means you want to have realistic expectations on what they can and cannot do. Understanding these limits before receiving counseling can help you make the most out of what you get!
Trying to Meet Face-to-Face
There are plenty of ways that you can choose to get counseling. While you can choose in person, you may be able to also choose over the phone or even through skype. However, you may find that a face-to-face in-person meeting is best. That’s because you don’t have to worry about bad service and can ask questions more easily in real time.
Having Your Questions Ready
When you are going to get housing counseling, you want to make sure that you make the most out of the counseling you get. This includes having questions ready. Think about why you are getting counseling in the first place. For example, if you are getting foreclosure counseling, you will want to have questions ready around this topic.
Bottom Line
Housing counselors are HUD approved professionals that can help people with a variety of different issues. They can help people understand their current situation as well as how to handle everything that comes along with the process of buying and handling a home. There are plenty of different specialties that people can provide counseling on which includes:
- FHA Loan Counseling
- Foreclosure Counseling
- Pre-Purchase Counseling
- Reverse Mortgage Counseling
- USDA Counseling
- VA Counseling
Getting help from a housing counselor typically tends to be free but there may be some fees that you deal with. However, the fees that they charge need to be reasonable. Take your time, and make sure you find the right housing counselor!