Education Is Required, and It Gates Your Lock
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Education sounds like the soft requirement on the list. It is the one that most often delays a closing, because it sits in front of the rate lock rather than beside it.
Everyone, not just first-time buyers
The guide is unusually direct here. All borrowers are required to participate in pre-purchase homeownership education or counseling prior to close, and it adds that this includes non-first-time homebuyers.
That catches repeat buyers who reasonably assume the requirement tracks the first-time programs. It does not. A buyer on IHDAccess Deferred with three prior homes behind them still takes the course.
What counts as an acceptable course
The course must meet standards defined by HUD or the National Industry Standards for Homeownership Education and Counseling, so a HUD-approved housing counseling agency is the safe route. Format is flexible: a workshop, one-on-one counseling or an online session all qualify. IHDA lists its own requirements under IHDA education requirements.
The borrower and co-borrower must each receive a certificate. Where the certificate has a signature line, it has to be signed. The lender retains a copy.
The guide notes there are no requirements regarding who provides the education, with one exception, which is the DTI band below.
The part that affects your timeline
The certificate is a gate on the rate lock. A loan can be imported, created and registered without it, but it cannot be locked until the certificate has been uploaded.
That ordering matters more than it sounds. A buyer who leaves the course until the week before closing is not just risking a missing document, they are delaying the point at which the loan can be locked at all.
Mike's advice on this is simple: take the course in the first week, not the last. It is the cheapest risk to remove on an IHDA file.
When Finally Home! becomes mandatory
One case overrides the free choice of provider. Loans with a back-end DTI between 45.01% and 50.00% must use Finally Home! homebuyer education prior to close.
The same band carries a credit condition on government loans: FHA, USDA and VA files need a score of 680 or higher, and below that requires a prior-to-close exception. The full credit and DTI matrix.
Ratios move during underwriting. A buyer who starts just under the line and drifts above it after a payment is recalculated now needs a specific course they have not taken. If you are anywhere near the line, taking Finally Home! from the outset removes the problem.
Two-unit purchases
On a Freddie Mac two-unit purchase, Landlord Education is required in addition to homebuyer education. IHDA notes it is strongly encouraged on other loan types. Two-unit properties also require that all borrowers provide certification of landlord counseling before closing, that agency minimum investment and reserve rules are met, and that the borrower occupies one of the two units. Property rules.
See also the full eligibility test and talk to our team about sequencing.
Frequently asked questions
Do I have to take a homebuyer education course for IHDA?
Yes, every borrower does. The IHDA guide states that all borrowers are required to participate in pre-purchase homeownership education or counseling prior to close, and adds explicitly that this includes non-first-time homebuyers. The course must meet HUD or National Industry Standards, and both borrower and co-borrower must receive a certificate.
When do I need to complete IHDA homebuyer education?
Before your rate lock can be confirmed. The guide states the loan can be imported, created and registered, but it cannot be locked until the certificate has been uploaded. Because the certificate gates the lock rather than just the closing package, leaving the course until late in the process can delay the loan itself.
When is Finally Home! required for an Illinois IHDA loan?
When the back-end debt-to-income ratio is between 45.01% and 50.00%. The guide states that loans in that band must use Finally Home! homebuyer education prior to close. The same band also requires a credit score of 680 or higher on FHA, USDA and VA loans, with anything below that needing a prior-to-close exception.
Can I take IHDA homebuyer education online?
Yes. The guide states the education can take the form of a workshop, one-on-one counseling, or an online session, provided the course meets standards defined by HUD or the National Industry Standards for Homeownership Education and Counseling. The borrower and co-borrower must each receive a certificate, and it must be signed where a signature line is present.
Is extra education required for a two-unit IHDA purchase?
Yes on Freddie Mac loans. The guide states that for FHLMC, two-unit purchases require Landlord Education in addition to homebuyer education, and that it is strongly encouraged for other loan types. Two-unit files also require all borrowers to provide certification of landlord counseling or education before closing, and the borrower must occupy one of the two units as their primary residence.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. IHDA program terms, income limits and purchase price limits are set by the Illinois Housing Development Authority and change; figures here carry the date we verified them and IHDA's own disclaimer applies, that funding and availability are subject to change and are not guaranteed until a complete reservation is placed. Loans are subject to borrower and property qualification.