For the following transactions, at least one borrower on the mortgage loan must complete homeownership education prior to loan closing:
- if all borrowers on the loan are relying solely on nontraditional credit to qualify, regardless of the loan product or whether the borrowers are first-time home buyers;
- HomeReady purchase transactions, when all occupying borrowers are first-time homebuyers; or
- purchase transactions with LTV, CLTV, or HCLTV ratios greater than 95%, when all borrowers are first-time homebuyers.
For additional information, see B2-2-06, Homeownership Education and Housing Counseling.