HUD housing counseling is free or low-cost guidance from federally certified counselors who help you buy a home, avoid foreclosure, understand a reverse mortgage, sort out a rental problem, or recover from a disaster. Every approved agency is a nonprofit or a state or local government office, and none of them earn commissions on loans or referrals. To find one, use HUD’s directory at hud.gov/findacounselor or call 800-569-4287. TTY users can reach the same line at 202-708-1455.
What HUD Approval Actually Means
Only private or public nonprofits and state or local government agencies can earn HUD approval. For-profit companies are not eligible.1HUD Exchange. How to Become a HUD-Approved Housing Counseling Agency Every counselor on staff has to pass a national certification exam covering financial management, housing affordability, fair housing, homeownership, avoiding foreclosure, and tenancy.2HUD Exam Hub. Become a HUD Certified Housing Counselor
Approval also carries ongoing oversight. HUD sets standards for how agencies deliver services, protect your personal data, report outcomes, and handle any fees they charge. Plenty of private companies advertise “housing help” without any of those safeguards, so the label matters.
Buying a Home for the First Time
Pre-purchase counseling is for anyone thinking about buying, whether it’s a first home or a return to homeownership after a setback. A counselor reviews your credit report, walks through your monthly budget, and helps you figure out how much mortgage you can carry without stretching yourself thin. They also explain how different loan products work, what closing costs to expect, and what recurring expenses like property taxes and insurance will add on top of principal and interest.
There’s a practical reason not to skip it. Many first-time homebuyer programs and down payment assistance programs require a certificate of completion from a HUD-approved session before you can apply. If your credit needs work, the counselor builds a specific plan to get you mortgage-ready rather than sending you off with vague advice.
Falling Behind on Your Mortgage
This is where housing counseling arguably delivers the most value per dollar. When you’re behind on your mortgage, or can see it coming, a counselor helps you organize your finances, prepare a hardship package, and communicate with your servicer about relief options like loan modifications, forbearance, or repayment plans.3eCFR. 24 CFR Part 214 – Housing Counseling Program
The counselor acts as a knowledgeable intermediary. Servicer loss mitigation departments are often overwhelmed, and the application process is confusing. Homeowners get denied because they submitted the wrong version of a form or missed a deadline they didn’t know existed. A counselor who has shepherded hundreds of people through the process catches those mistakes early.
One thing to be aware of: if your servicer agrees to reduce what you owe through a modification, short sale, or deed in lieu of foreclosure, the forgiven amount generally counts as taxable income and shows up on a Form 1099-C.4Internal Revenue Service. Topic No. 431, Canceled Debt – Is It Taxable or Not? Congress previously let homeowners exclude forgiven mortgage debt on a primary residence, but that exclusion expired at the end of 2025.5Office of the Law Revision Counsel. 26 U.S. Code 108 – Income From Discharge of Indebtedness A separate insolvency exclusion under the same statute may apply if your debts exceeded your assets when the debt was canceled. Your counselor can flag this issue, but the numbers themselves are a job for a tax professional.
Reverse Mortgages
Federal law requires anyone applying for a Home Equity Conversion Mortgage to complete counseling with a HUD-approved agency before the lender can process the loan. Both the borrower and any non-borrowing spouse must attend.6U.S. Department of Housing and Urban Development. Handbook 7610.1 – Housing Counseling Program Without proof of counseling, the application doesn’t move forward.
The session covers how a reverse mortgage works, what it costs (including mortgage insurance premiums and origination fees), how it affects your heirs, and what alternatives might accomplish the same goal with less risk. The counselor is required to walk through the financial implications of turning home equity into cash, including the possibility of owing more than the home is worth if property values drop.
Renting
Counseling isn’t only for homeowners. Renters can get help with budgeting for housing costs, understanding lease terms, working through disputes with landlords, and knowing their rights when facing eviction.3eCFR. 24 CFR Part 214 – Housing Counseling Program If you believe you’ve been turned down for housing based on race, disability, family status, or another protected characteristic, a counselor can help you understand your fair housing options and connect you with the right enforcement agency.
Staying in the Home After You Buy
Buying is one decision. Keeping a home in good financial and physical shape is an ongoing one that catches many new owners off guard. Post-purchase counseling covers staying current on property taxes, insurance, and HOA fees, and building a maintenance plan for major systems like the roof, HVAC, and plumbing so that a $300 repair doesn’t become a $10,000 emergency.7HUD Exam Hub. 4.2 Post-Purchase
These sessions also cover energy efficiency, options for financing repairs (including FHA 203(k) rehabilitation loans and home equity lines of credit), and how to think about refinancing given your current rate and remaining balance.7HUD Exam Hub. 4.2 Post-Purchase If you’re considering selling, the counselor can help you avoid predatory practices from buyers or agents.
Recovering From a Disaster
If your home was damaged or destroyed in a presidentially declared disaster, HUD-approved counselors can help you navigate recovery. The immediate step is usually contacting your servicer to request forbearance while you get back on your feet. A counselor can also help you sort through insurance claims and assess options for rebuilding.8U.S. Department of Housing and Urban Development. Rebuilding or Replacing Your Home After a Major Disaster
One program worth knowing about is FHA’s Section 203(h) mortgage insurance, which helps disaster victims finance the purchase or reconstruction of a home. Both homeowners and renters whose previous residence was in the declared disaster area can qualify, and you apply through an FHA-approved lender within 12 months of the presidential declaration. The replacement home must be your primary residence, but it doesn’t have to sit inside the disaster area.8U.S. Department of Housing and Urban Development. Rebuilding or Replacing Your Home After a Major Disaster
What It Costs
Most HUD-approved counseling is free because agencies receive federal grants that cover the services. Agencies are prohibited from charging you for any service already funded by a HUD grant, and the initial intake is always free.3eCFR. 24 CFR Part 214 – Housing Counseling Program
For services not covered by a grant, agencies may charge a reasonable fee, but the rules are strict. The fee cannot create a financial hardship, it has to be proportional to the service, and the agency has to disclose it before starting. If you cannot afford the fee, the agency is required to provide counseling at no charge.3eCFR. 24 CFR Part 214 – Housing Counseling Program Agencies may pass along the cost of pulling your credit report, and any bulk discount they receive has to be passed on to you. Every agency’s fee schedule must be posted where clients can see it.
If anyone asks you to pay hundreds of dollars upfront for foreclosure help, mortgage modifications, or “housing rescue,” that is not a HUD-approved agency. That’s a scam.
Finding a Counselor and Avoiding Scams
The fastest route is HUD’s online directory at hud.gov/findacounselor, where you can search by ZIP code and filter by the type of counseling you need.9U.S. Department of Housing and Urban Development. HUD-Approved Housing Counselors (Find a Counselor) To talk to someone, call 800-569-4287 and a representative will connect you with approved agencies in your area.10U.S. Department of Housing and Urban Development. Housing Counseling
Verification matters because scammers deliberately mimic the language of legitimate housing counseling. If any organization claims HUD approval, check the directory. If they’re not listed, they’re not approved. Beyond that, watch for these red flags:11HUD Exchange. Spot the Signs – Avoid Frauds and Scams
- Upfront fees for loan modifications. Legitimate agencies don’t charge you to negotiate with your servicer.
- Payment redirection. Never send your mortgage payment to anyone other than your servicer or lender.
- Deed transfer requests. No legitimate counselor will ask you to sign over your home’s deed in exchange for mortgage relief.
- Urgency pressure. Scammers want you to act before you think. A real counselor gives you time to review documents.
What to Bring to Your First Session
Gather your financial documents ahead of the appointment so the counselor can quickly assess where you stand. The more complete the picture, the more useful the action plan.
- Recent pay stubs or benefit letters
- Bank statements from the last two to three months
- Your most recent federal tax return
- Statements for credit cards, car loans, student loans, and any other debts
- Recent utility bills, and if you rent, your lease
Homeowners should also bring a current mortgage statement, property tax bill, and homeowners insurance declaration page. If you’re seeking foreclosure prevention help, bring any correspondence from your servicer, including default notices and loss mitigation packets.
Handing over pay stubs and tax returns raises understandable privacy concerns. HUD requires participating agencies to follow federal privacy standards for personally identifiable information. Your data can only be collected for a legally authorized purpose, must be protected with administrative and technical safeguards, and can only be used for the purposes explained to you in advance.12U.S. Department of Housing and Urban Development. Privacy Act at HUD If the agency asks for your Social Security number, it has to explain the legal authority for the request and why it’s necessary. You also have the right to see your own records and ask for corrections.