The Wisconsin Neighborhood Advantage requires eight hours of face-to-face home buyer education from a HUD-approved agency. How are the counseling agencies being paid for this requirement?
The counseling agency will be paid with NSP funds by a sub-grantee bringing NSP funds for down payment assistance or repairs to the transaction. That sub-grantee may be a non-profit or a municipality. Educational fees may vary by sub-grantee, with most averaging about $500. If WHEDA is the sub-grantee of down payment or closing cost assistance, WHEDA will pay $500 for the pre-purchase home buyer education directly to the counseling agency in all Wisconsin Neighborhood Advantage transactions. For all transactions, WHEDA will pay $400 for post-purchase education. These payments will be reflected on the HUD-1 Closing Statement.
