A housing counselor is a trained advisor who helps people make decisions about renting, buying, avoiding foreclosure and managing money related to housing. The U.S. Department of Housing and Urban Development (HUD) approves counseling agencies that meet its standards, and these agencies can be found across the country. Many provide services for free or at a low cost. Counselors are separate from lenders, so their advice is independent.
What a housing counselor can help with
Depending on the agency, services may include:
- Pre-purchase counseling. Budgeting, understanding credit, setting a target price and learning how the home buying process works.
- Homebuyer education classes. Group sessions or online courses that satisfy requirements for many assistance programs.
- Credit and debt guidance. Help understanding your credit reports, building a plan to reduce debt and improving your readiness to buy.
- Down payment assistance guidance. Information about state and local programs and how to apply.
- Foreclosure prevention. Help for homeowners who are struggling to make payments.
- Reverse mortgage counseling. Counseling is required before taking out a federally insured reverse mortgage.
- Rental counseling. Help with tenant rights, finding affordable housing and avoiding eviction.
How to find a counselor
There are two official tools:
- The Consumer Financial Protection Bureau’s find a housing counselor tool, which lets you search by ZIP code and filter by service.
- HUD’s housing counselor search, which lists HUD-approved agencies by location.
When you search, enter your ZIP code and check the services each agency offers. Agencies differ in language support, in whether they offer in-person or virtual sessions, and in how soon they have openings.
Questions to ask before you book
- Are you HUD-approved?
- What do your services cost, and are there income-based fees or waivers?
- Do you offer a homebuyer education certificate that works with local assistance programs?
- How long is your certificate valid?
- Do you provide one-on-one counseling as well as classes?
- What should I bring to the first appointment?
- Do you offer services in my language, in the evenings or online?
What to bring to your first session
- Recent pay stubs and your last year’s tax return
- A list of your monthly debts and expenses
- Recent bank statements
- A copy of your credit report, if you have it
- Any questions about your goals and timeline
How counseling fits with getting a mortgage
Counseling and pre-approval work well together. Many buyers complete a class or a counseling session, then speak with a loan officer about financing. If a program requires counseling, do it early, because certificates and appointments can take time. If you are ready to talk about loan options, you can get pre-approved or call (760) 713-3814. Our homebuyer education class checklist explains how to choose a class, and our guide to preparing your finances gives you a 90-day plan.
Beware of scams
Be careful of anyone who asks for a large upfront fee to “save your home,” promises to guarantee a loan modification or tells you to stop talking to your lender. Legitimate counselors do not make guarantees. If you have a problem with a financial product or service, you can submit a complaint to the Consumer Financial Protection Bureau.
Sunset Home Lending is not affiliated with HUD or the CFPB. We share this information as a community resource. Housing counseling agencies are independent organizations, and we do not receive compensation for any referrals.
Frequently asked questions
Do I have to use a housing counselor to buy a home?
Not always, but some loan and assistance programs require it, especially for first-time buyers using down payment assistance. Even when it is optional, counseling can help you budget, understand your credit and avoid costly surprises.
How much does housing counseling cost?
Costs vary. HUD-approved agencies often offer counseling at low or no cost, though some charge fees for certain classes or services. Ask about fees when you contact an agency.
Is a housing counselor different from a loan officer?
Yes. A HUD-approved counselor provides independent education and guidance and does not originate your loan. A loan officer helps you apply for and obtain a mortgage. Using both can help: the counselor gives you a neutral perspective, and your loan officer explains the financing options.