Housing Counseling Centers

Practical Solution

The “How To”

Agencies and organizations should be trained to help residents make better-informed decisions about homeownership. Agencies should receive housing counseling training and become certified. The National Industry Standard for Homeownership Education and Counseling Code of Ethics and Conduct for Homeownership Professionals and application form are two standard documents that many Saint Louis region housing counselors have pledged to follow. Residents should enroll in a HUD approved homeowner course or certified homeowner program to help them make responsible choices about homeownership. When taking out a loan for a home, homeowners should be aware of predatory lending, high-risk loans, and where their interest rates should be.

HUD Housing Counseling Program (HCS) provides training and funding to qualified organizations to support housing counseling activities. Congress appropriates HCS funds to HUD. Funds are then distributed to HCS organizations in a competitive grant process. Eligible applicants include grassroots, faith-based organizations, community-based organizations, nonprofits, or public housing authorities. Local county, city and state governments may participate but need not apply. Find HUD approved counseling centers here. Counseling agencies must comply with the Fair Housing Act and Civil Rights Act. Organizations who participate in the HCS must follow a few basic requirements:

Counseling must be offered and available to current and potential homeowners or tenants.

Counseling services may take place in an alternative location such as a client’s home, a mutually acceptable location, or in an office. HCS should remain consistent with the agency’s work plans. Counseling services should only be available in a limited geographic range that is approved in the work plan. HCS must abide by Civil Rights laws and Fair Housing laws. Beyond Housing offers HUD certified housing counseling, online training, and classroom training.

Pre-purchase/Home Buying

When thinking about homeownership, one must think about sources of mortgage credit, down payments, and federal and state assistance. Before purchasing a house is the time to learn how to management money. Classes are available for homeownership. For example, Clearpoint Credit Counseling Solutions offers 8-hour home buying courses. 

Resolving or Preventing Mortgage Delinquency or Default

Information is available for budgeting and credit, consequences of default and foreclosure, restructuring debt, predatory lending, and more about finances.

Non-Delinquency Post-Purchase, including Improving Mortgage Terms and Home Improvement

The OneSTL Universal Design tool can aid with home improvement upgrades. Other OneSTL tools that have additional information include the Home Improvement Guide and Home Improvement Loan Program. Clear Point Credit Counseling Solutions offers post-counseling services.

Locating, Securing, or Maintaining Residence in Rental Housing

HUD provides rental and rent subsidy programs such as Section 8/Fair Housing Choice vouchers. State or local governments can provide other rental housing help. Beyond Housing’s Service-Enriched Rental Housing Program connects rental families with services to support their needs within their neighborhood. The Service-Enriched Rental Housing Program provides opportunities for a variety of services such as parenting classes, summer camps, educational support, employment counseling and vocational assistance, and more. 

Reverse Mortgage

A reverse mortgage is a mortgage product that pays a homeowner, loan proceeds drawn from accumulated home equity and that requires no repayment until a future time. Justine Peterson provides reverse mortgage counseling. 

Homeless Assistance

Homeless assistance can include resources for homeless shelters, emergency services, and transitional housing. The Catholic Charities Housing Resource Center offers housing counseling services that can prevent homelessness and assist with current homeless populations. 

Dollars & Cents

Prices for training opportunities may vary by organization. 

Fannie Mae

Make your home more affordable by using one of Fannie Mae’s Making Home Affordable Programs. Fannie Mae’s Home Affordable Refinance Program (HARP) helps homeowners refinance their mortgage. HARP can help change a policy to a fixed-rate, lower your monthly payment, and reduce your interest rate. The Fannie Mae Home Affordable Modification Program (HAMP) helps modify an existing loan to make monthly mortgage payments lower than 31% of a homeowner’s gross (pre-tax) monthly income. HAMP could resolve a mortgage delinquency status with a homeowner’s mortgage company.

Down Payment Assistance

Residents in the Saint Louis area can take advantage of assistance with their first down payment on a home. Better Family Life’s Down Payment Assistance Program offers education and coaching opportunities for financial and home ownership. Better Family Life offers up to $3,000 for down payment and closing costs. They also offer a First-Time Homebuyer Program and a West End Home Repair Program (for the 26th Ward). Beyond Housing serves as an excellent resource, as well.

Measuring Success

In May of 2013, HUD concluded that housing counseling helps families prepare for homeownership and keeps families in their homes. Pre-purchase counseling and foreclosure counseling were effective. The Pre-purchase Counseling Study concluded that 35% of the 573 study participants had become homeowners 18 months after seeking pre-purchase counseling. The Foreclosure Counseling Study followed up with 824 people, 18 months after completing foreclosure counseling. This study found that about 75% of homeowners who have fallen behind on payments were able to obtain a remedy, retain their home, and became current on their mortgage.  

Beyond tracking the numbers of those who receive counseling and certificates of completion from housing programs, measurements may include residential measurements and community measurements. Residential measurements will show how effective housing counselors and programs are. If not effective, revisit the program to find reasons why and adjust the program if possible. Reasons may be the duration of time one spends in the program or the contact between the counselor and participant after the program has ended.

Residential Measurements

• How many people found a home because of the program?
• How many people have stayed in their homes for the past 3 years?
• How many residents have had their homes foreclosed upon?
• How many residents’ properties are delinquent?

Community Measurements 

• Has the community seen an increase in property values?
• Have any businesses, services, or amenities moved into the neighborhood or increased in services?
• What is the amount of vacant properties?
• What are reasons for vacant properties?
• Are home repairs being neglected or are homes consistently in good condition?