Many down payment programs require a first-time homebuyer education class before closing, and buyers who don't know it can delay their own closing. The class is also one of the best things that can happen to a buyer: they show up to the offer table calmer and smarter. Here's when it's required, how to get it done early, and how to use it to build your business.
The short answer
In Colorado, CHFA requires homebuyer education for its loan programs, and many local down payment programs and some low-down-payment conventional programs do too. Classes are often available online or in person through approved providers, sometimes free or low cost. Rules on who must take it and when change, so check the program's current requirements and have buyers finish early, ideally before they write an offer.
Step by step
- Ask the lender which program fits. Before you search, the lender tells you whether the buyer's program requires education. See down payment assistance basics.
- Check the current rule. For CHFA, check chfainfo.com. For local programs, check the city or county program page.
- Send the link the same day. Don't wait for a contract. Many classes take a few hours online.
- Ask for the certificate. The buyer sends it to the lender. Keep a copy in your file.
- Know who must take it. Some programs require every borrower. Some require at least one. Check.
- Watch expiration. Some certificates are only good for a set time. Check the program.
- Talk about the class after. Ask the buyer what surprised them. It's a great coaching moment.
- Consider counseling. For buyers with credit or budget questions, HUD-approved housing counseling agencies offer one-on-one help.
Where education is often required
| Program type | Education often required? |
|---|---|
| CHFA loans and assistance | Yes, check current rules |
| Local city or county down payment programs | Often |
| Some low-down-payment conventional programs | Sometimes |
| Standard FHA, VA, conventional | Usually not, unless paired with a program |
How to explain it to your client
"Your down payment program requires a homebuyer class before closing. It's online, it takes a few hours, and honestly it's worth it. You'll learn things that make you a better buyer, like how to read your loan estimate. Let's get it done this week, before we find the house, so it never holds up your closing. Send me the certificate when you finish."
Watch-outs
- Late certificates delay closings. Get it done early.
- Use approved providers. Not every class counts for every program.
- Rules change. Don't hard-code requirements in your scripts.
- Don't promise program approval. The lender and program decide.
- Fair housing. Offer the same information to every buyer.
Further reading
- CHFA down payment assistance in Colorado on kennarealestate.com
- Down payment assistance options on denver-hudhomes.com
This is training for real estate agents. It isn't legal, tax or lending advice. A licensed loan officer sets loan terms. Check with your managing broker.
Questions
Is the class free?
Some are free and some have a small fee. It depends on the provider.
Can buyers take it online?
Often, yes, through approved providers. Check the program.
When should buyers take it?
Early, before they write an offer.
Does every buyer need it?
Only if their loan or assistance program requires it.
Does the class help me as the agent?
Yes. Buyers who finish it understand loan estimates, closing costs and inspections, so your consults go faster and your deals have fewer surprises. Ask what they learned and build on it.
Should I host my own homebuyer class?
Many agents co-host free seminars to meet buyers. Check whether your session counts for any program before saying so, and follow RESPA and brokerage rules on co-sponsors.
What if the buyer has credit issues?
A HUD-approved housing counselor can help. See consumerfinance.gov for help finding one.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.