Counseling for Homebuyers

The Pennsylvania Housing Finance Agency (PHFA) offers free counseling and education programs to help you become a prepared homebuyer. Whether you want to learn about the home buying process, improve your credit, understand your finances, or get help during a housing crisis, PHFA has a program for you. All counseling services are provided at no cost to you.

Understanding Your Counseling Options

Buying a home is one of the biggest financial decisions you will make. PHFA knows that many first-time homebuyers feel unsure about where to start. That is why the agency offers multiple counseling programs designed to meet your needs at different stages of the homebuying process. You can receive help in person, online, or through phone counseling. All programs are staffed by trained housing counselors who understand mortgage lending and can answer your questions.

Homebuyer Counseling and Education Program

The Homebuyer Counseling and Education Program helps you prepare for homeownership through guidance and education from approved counseling agencies across Pennsylvania. Housing counselors provide advice on many topics that affect your ability to buy a home and succeed as a homeowner.

What Topics Are Covered?

PHFA approved counselors teach you about the following subjects:

Evaluating your readiness to become a homeowner
Fair housing and recognizing discrimination
Reading and understanding your credit report
Repairing your credit score
Budgeting for mortgage payments and other housing costs
Improving your money management skills
Selecting a real estate agent
Choosing a qualified home inspector
Finding alternative sources of mortgage credit
Applying for special mortgage programs
Identifying and avoiding predatory lending practices
Finding homes with universal design and accessibility features
Locating resources for accessibility modifications
Using the Section 8 Homeownership Voucher Program
Connecting with community services and government agencies

Credit Score Requirements

Your middle credit score determines how you complete your counseling requirement. PHFA uses the middle score of three credit reports, which is the score between your lowest and highest scores.

If your middle credit score is at or above 680, you can complete the PHFA Online Homebuyer course. This self-paced course allows you to learn at your own speed from home. If your middle credit score is lower than 680, you must complete an in-person course with a PHFA approved counseling agency before closing on your mortgage loan.

PHFA pays the full cost of your counseling and education. The only exception is a credit report fee that some counseling agencies may charge. We strongly recommend that you seek counseling before you sign a sales agreement, especially if this is your first home purchase.

Finding a Counselor Near You

PHFA maintains a list of approved homeownership counseling agencies in all Pennsylvania counties. You can find an agency in your area by selecting your county from the dropdown list on the PHFA website. Once you locate an agency, call to schedule an appointment. Counselors are available to meet with you in person or by phone, depending on what works best for your schedule.

Housing Counseling Stability Program

Life can be unpredictable. If you are facing a housing crisis, the Housing Counseling Stability Program may be able to help. This program is designed for people who are struggling to keep their homes due to unexpected financial hardship.

Who Can Get Help?

The Housing Counseling Stability Program serves households dealing with housing instability. This includes people who are facing eviction, mortgage default, foreclosure, sudden loss of income, or homelessness. If you are in any of these situations, you can contact a HUD certified housing counseling agency for free help.

What Services Are Available?

Housing counseling specialists who work with this program are certified by the U.S. Department of Housing and Urban Development (HUD). They can offer solutions tailored to your specific situation. Counselors help you by creating an action plan, teaching you about budgeting and credit, and connecting you with other resources. The services available include assistance with preventing foreclosure, avoiding eviction, managing debt, and accessing emergency rental assistance.

This program was created through the American Rescue Plan Act of 2021, which gave NeighborWorks America 100 million dollars to fund housing stability counseling across the United States. PHFA participates in this program to ensure Pennsylvania residents have access to free help during housing crises.

Financial Education and Coaching Program

PHFA developed the Financial Education and Coaching Program because the agency believes that smart money management helps you build a stronger future. Whether you are a renter thinking about buying, a first-time homebuyer, or an established homeowner, better financial skills help you make better housing decisions.

Why Financial Education Matters

When you understand how to manage your money, you feel less stress about making housing payments each month. Financial education teaches you how to set goals, build savings, avoid debt traps, and improve your credit. Stable housing gives your family the foundation needed to thrive. PHFA offers financial education through webinars, group workshops, and one-on-one coaching sessions. All programs are free of charge.

Financial Education Webinars

PHFA regularly hosts online seminars on personal finance topics. These webinars are free and open to the public. You can attend from your home using a computer or mobile device. Topics change frequently, so check the PHFA website regularly for upcoming sessions. You can email the agency at AskPHFA@PHFA.org to suggest topics you want to learn about.

Four-Workshop Financial Education Series

PHFA offers a series of four workshops that teach you to manage your money effectively. Each workshop covers one main topic and builds on what you learn in previous sessions. The workshops are taught in a group setting by certified housing counselors at approved agencies. All workshops are completely free.

The four workshops cover these topics:

Goals, Assets, and Earnings: You learn to understand your personal assets and how to set financial goals that matter to you. The workshop covers different sources of income and how employer benefits like health insurance and retirement plans contribute to your overall financial health.
Spend, Save, and Invest: This workshop teaches you how to make smart money decisions, tell the difference between needs and wants, and manage your cash flow. You learn the difference between saving money and investing it, and how to diversify your savings to protect and grow your assets.
Review Taxes, Manage Risk, and Protect Your Money: You get the basics of how income taxes work and how to understand your tax return. The workshop also covers ways to manage risk, including insurance options, identity theft protection, and resources to protect your consumer rights.
How to Get, Use, and Manage Credit: The final workshop explains why maintaining good credit matters and how to use credit to build your assets. You learn about credit reports, credit scores, and the credit building process.

Financial Capabilities Face-to-Face Sessions

PHFA launched the Take Charge of Your Money campaign to help more Pennsylvanians understand and improve their finances. If you prefer to work one-on-one with a counselor, you can schedule a face-to-face financial capabilities session. During this session, you discuss your current financial situation, look closely at your spending habits, and create goals that will improve your life. These sessions are conducted by certified counselors and are completely free.

One-on-One Coaching

After you complete the four-workshop series, you become eligible to meet with a counselor for private coaching sessions. These sessions help you work on your personal finances in detail. You can meet face-to-face or talk by phone, whichever works better for you. All coaching is free of charge.

How to Get Started

Getting help from PHFA is easy. First, decide which program fits your needs. If you want to prepare for buying a home, start with Homebuyer Counseling and Education. If you are facing a housing emergency, contact a Housing Counseling Stability Program agency. If you want to improve your money management skills, enroll in the Financial Education program.

Next, find a counseling agency in your county. PHFA maintains lists of approved agencies on its website. You can search by county and access contact information. Call the agency and ask about their schedule and how they offer services. Most agencies serve you in person, by phone, or online.

If you have questions about finding counseling or want more information, contact Terri L. Redmond at PHFA at 717.780.3907. You can also email questions to AskPHFA@PHFA.org.

Frequently Asked Questions

Q: Do I have to pay for counseling?

A: No. All PHFA counseling and education programs are completely free. PHFA pays for the counseling services. The only possible cost is a credit report fee charged by some counseling agencies, but you cannot be required to pay this fee.

Q: Can I take counseling online or by phone?

A: Yes. Many approved counseling agencies offer services online and by phone. You can call an agency in your county to ask about their available methods. The PHFA Online Homebuyer course is available for borrowers with a credit score of 680 or above.

Q: What if I am facing eviction or foreclosure?

A: Contact a Housing Counseling Stability Program agency immediately. These counselors are trained to help people facing housing crises. They can help you explore options to stay in your home and connect you with emergency assistance programs.

Q: How long does counseling take?

A: The length of counseling depends on the program. The four-workshop Financial Education series spans several weeks. Homebuyer counseling can range from several sessions to completion of the online course. One-on-one coaching depends on your needs. Contact an agency to ask about their typical timeline.

Q: Do I need counseling if I already have a good credit score?

A: If your middle credit score is 680 or above, you can take the online homebuyer course instead of in-person counseling. However, many homebuyers benefit from counseling even with good credit because counselors teach you about the home buying process, help you avoid predatory lending, and prepare you for homeownership responsibilities.