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Why First-Generation Homebuyers Should Put Education First

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Why First-Generation Buyers Should Always Consider Education

Picture this: you’re about to play a complicated board game for the first time. But there’s no rulebook. The other players toss around terms like “strategy,” “probability,” and “odds” while you’re just trying to figure out how to roll the dice.

For many first-generation homebuyers, this is exactly what the homebuying process can feel like. If you’re the first in your family to do this, you might be asking questions like, “What’s escrow?” “Do I really need an inspection?” “Hey, what’s a PMI?” or “Is this closing cost estimate normal?”

It’s not a lack of smarts. It’s a lack of a playbook.

But here’s the secret. Every expert was once a beginner, and every beginner needs a great teacher. For first-generation buyers, a homebuyer education course is that teacher. It’s the rulebook you never got. It’s a guided tour that turns a confusing maze into a clear path forward.

Building Your Own Foundation

When you’re the first, you’re building a new legacy. It’s an incredible achievement, but it also means you have to figure out a lot of things on your own. Without a trusted guide, it’s easy to depend on outdated articles or well-meaning advice from friends and family, which can be full of outdated or just plain wrong information.

A homebuyer course gives you a foundation of knowledge that is 100 percent accurate, vetted, and up to date. It replaces uncertainty with confidence. You’ll learn:

  • The Language of Real Estate: What’s the real difference between a fixed-rate and an adjustable-rate mortgage? What exactly is private mortgage insurance (PMI)? What’s escrow and why does it matter? The course breaks down jargon into plain English so you can understand every document you sign.
  • How to Spot a Good Deal (and a Bad One): Without generational wisdom, it’s hard to know if a house is a money pit or a great opportunity. You’ll learn how to read listings, how to evaluate a neighborhood, and how to make a smart offer.
  • The True Cost of Homeownership: It’s more than just the mortgage payment. You’ll learn to budget for property taxes, homeowners insurance, maintenance, and repairs so you’re never taken by surprise.

This knowledge empowers you to make decisions based on facts, not fear or guesswork. You’re not just buying a house; you’re building a stable future for yourself and your future family.

Understanding the First-Generation Buyer Landscape

The challenges that first-generation buyers face today are significant and unlike those faced by earlier generations. Recent reports have shown that first-time buyers make up a smaller share of the market than in the past. In the 1980s and 1990s, there were periods when first-time buyers made up nearly 50 percent of the market.

This shift indicates that fewer new buyers, including many first-generation purchasers, are entering the market, which has a range of potential causes including rising home prices, student loan debt, and limited housing inventory that disproportionately affect new buyers.

Furthermore, and according to the National Realtors Association, the median age of first-time buyers has risen steadily over the years. That’s not because people don’t want to buy; it’s because it’s become harder to buy. Debt-to-income ratios are tighter, and saving for a down payment is harder than ever. Many buyers also report that covering closing costs and building an emergency cushion is a challenge.

Income requirements for first-time buyers have also climbed sharply in some markets, with mortgage qualification standards, insurance costs, and appraisal rules making it more difficult for new buyers to break in. In many areas, the household income needed to qualify for a mortgage now hovers close to or above the area median income, which makes reaching the market challenging without extra support.

The rising costs of living, stagnant household savings rates, and inflation have reshaped the first-time buyer’s path to homeownership. At the same time, there is still strong demand for housing and a desire to build long-term stability and wealth through homeownership. These realities make education and preparation more critical than ever before.

Despite these hurdles, many first-generation buyers remain motivated by the long-term benefits of homeownership—stability, community roots, and the opportunity to build equity that renting does not offer.

These economic realities make education and financial preparation essential. With the right support, you can navigate the terrain ahead successfully and turn homeownership goals into realities.

Your Key to Financial Help

Here’s a huge benefit that first-generation buyers sometimes overlook: education is often the master key that unlocks financial assistance.

Most down payment assistance (DPA) programs and grants require a HUD-approved homebuyer education certificate as part of the qualification process. Completing the course shows that you understand the responsibilities of homeownership and that you have the knowledge to manage your home and mortgage for the long haul.

For a first-generation buyer, this is a game-changer. These programs can provide:

  • Forgivable loans that act like grants after a few years
  • Low-interest second mortgages to cover your down payment
  • Outright grants that you don’t have to pay back

This financial boost can be the difference between dreaming and doing. The right course doesn’t just prepare you to apply for programs; it gives you the golden ticket you need to apply for them.

From Overwhelmed to Prepared

Let’s be honest: money talk can be stressful, especially if you’re breaking new ground for your family. A homebuyer education course breaks down these barriers in a safe, non-judgmental environment.

You’ll learn how to improve your credit score, manage your debt-to-income ratio, and plan for a budget that fits your life—not someone else’s. You’ll set a foundation not only for buying a home, but for maintaining it—starting a new tradition of financial wellness for your family.

This knowledge also gives you the confidence to talk to lenders, agents, and inspectors. You’ll ask better questions, push back when something doesn’t make sense, and make sure your team is working in your best interest. Education doesn’t just prepare you for the process—it helps you get the best possible service and the best possible deal.

Your Flexible, Affordable Family Guide

We know you’re busy writing your own story. The idea of going to a class might feel like just another thing on your to-do list. That’s why an online, self-paced course like the one offered by Money Fit by DRS is the perfect solution for first-gen pioneers.

  • Self-Paced Learning: The course is 100% online. You can learn in about 6–8 hours—all at once on a Saturday, over a couple of evenings after work or school, or on a Sunday afternoon. It’s your rulebook, available whenever you are.
  • Affordable for Everyone: At $100 per household (with hardship discounts available), the value is substantial. You’ll gain essential knowledge and a certificate that can unlock assistance—an investment for a huge return in knowledge and potential financial help.
  • Instant Certificate: The moment you finish the 6–8 hours of coursework, you’ll receive your certificate instantly. That means you can move to the next stage of your journey right away to start applying for down payment assistance programs.
  • No Extra Hoops: The course is your one-stop shop. There’s no hidden agenda and no extra steps beyond what you already need to do. You get the information, you earn your certificate, and you move forward with confidence.

Start Your New Family Tradition

As a first-generation homebuyer, you are a trailblazer. You’re building something new—security, stability, and a lasting foundation for your family. It’s a big job, but you don’t have to do it alone.

A homebuyer education course is your trusted guide. It provides the rulebook so you can make decisions with clarity, confidence, and care. And when you finally turn the key in your front door, you’ll know the foundation you’re building is strong, secure, and made to last.

Don’t navigate the most important financial decision of your life without a map. Equip yourself with the knowledge to succeed.

Ready to write your own rulebook for homeownership? Gain the confidence and knowledge to build your legacy.

Register for the online HUD-approved Homebuyer Education Course from Money Fit by DRS today: https://www.moneyfit.org/housing-counseling

About the Author

Picture of Todd Christensen

Todd Christensen

As the education manager for Money Fit, author, speaker, and financial educator, Todd Christensen develops financial education programs and provides credit and debt counseling for individuals and groups around the country. In 2014, Todd published his first 5-star-rated book, Everyday Money for Everyday People based on stories and ideas he had heard in nearly 1,000 workshops he facilitated on budgeting, credit, debt reduction, saving, and identity protection.
Visit Todd Christensen's Page

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)