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First-time buyers · Fannie Mae B2-2-06Homebuyer education course: when a mortgage requires it, and how to finish in time

Fannie Mae requires at least one borrower to complete homeownership education before closing in four situations: a HomeReady purchase when all occupying borrowers are first-time homebuyers; a purchase above 95% loan-to-value when all borrowers are first-time homebuyers; a DU purchase where no borrower has at least one credit or installment account on the credit report; and a manually underwritten purchase where no borrower has a credit score. Any qualified provider independent of the lender may give the course if its content follows the National Industry Standards or HUD standards; it can be in person, online, by phone or hybrid. One-on-one housing counseling from a HUD-approved agency also satisfies the requirement, and on HomeReady loans counseling completed within 12 months before closing may earn a pricing credit. The lender keeps the completion certificate in the file.

When education is required (B2-2-06)

  1. 1. HomeReady

    Purchase, and all occupying borrowers are first-time homebuyers.

  2. 2. Over 95% LTV

    Purchase, and all borrowers are first-time homebuyers.

  3. 3. No credit accounts (DU)

    No borrower has at least one credit or installment account – as DU instructs.

  4. 4. No credit score (manual)

    All borrowers on a manually underwritten purchase lack a credit score.

How to meet it

  • A provider independent of the lender, with content aligned to National Industry Standards or HUD.
  • In person, online, by phone or a mix.
  • Or one-on-one housing counseling from a HUD-approved agency, completed before closing.
  • Send the certificate of completion to the lender – it goes in the loan file.

Timing tips for the TC

  • Ask the lender on day one whether the loan needs the course.
  • Many courses take several hours – schedule it in the first week, not the last.
  • Spanish-speaking buyers: ask the lender or a HUD-approved agency for a course in Spanish.

Questions buyers ask

Do first-time homebuyers have to take a class?

On a Fannie Mae loan, when all borrowers are first-time buyers on a HomeReady purchase or a purchase above 95% LTV, at least one must complete homeownership education before closing (B2-2-06).

Can I take the homebuyer course online?

Yes. Fannie Mae accepts in-person, internet, telephone or hybrid formats from a qualified provider independent of the lender.

Does housing counseling count instead?

Yes. Housing counseling from a HUD-approved agency completed before closing also satisfies the requirement.

Related guides

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Source: Fannie Mae Selling Guide B2-2-06, Homeownership Education and Housing Counseling (11/05/2025), selling-guide.fanniemae.com, read October 25, 2026.

General information about Fannie Mae conventional loans, not legal or financial advice. Income limits come from Fannie Mae's own AMI data, and lenders can add rules. ClosingCode is software; it is not a lender or counseling agency. This guide is not a substitute for the advice or services of an attorney.