Who Participates in 

Homebuyer Education 

and Counseling 

Services and Why?

Insights from HUD’s First-Time 

Homebuyer Education and 

 Counseling Demonstration

Who Participates in Homebuyer Education and Counseling Services and Why? 

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Who Participates in Homebuyer Education 

and Counseling Services and Why?

Insights From HUD’s First-Time Homebuyer 

Education and Counseling Demonstration

Prepared for

U.S. Department of Housing and Urban Development

Office of Policy Development and Research

Prepared by

Shawn R. Moulton

Laura R. Peck

Nichole Fiore

Debbie Gruenstein Bocian

Donna DeMarco

Abt Associates

October 2018

Acknowledgments

This report was funded by the U.S. Department of Housing and Urban Development (HUD) First-Time Homebuyer Education and Counseling Demonstration. The authors are grateful for research assistance from Michael Meneses (Abt Associates). Jill Khadduri (Abt Associates) and Jon Spader (Harvard University) provided critical review. 

The authors also appreciate input from HUD staff, including Sarah Gerecke, Marina Myhre, Arlene Nunes, Todd Richardson, Blair Russell, Mark Shroder, and Stephanie Williams.

Disclaimer

The contents of this report are the views of the contractor and do not necessarily reflect the views or policies of the U.S. Department of Housing and Urban Development or the U.S. government.

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Contents

Abstract .................................................................................................................................................1

Introduction and Background ...................................................................................................................1

What Is Homebuyer Education and Counseling? ....................................................................................2

Study Sample ....................................................................................................................................3

Prior Research on Participation and the Contribution of This Report ........................................................3

A Theory and Hypotheses About the Participation Decision .........................................................................5

A Theory of Service Participation .........................................................................................................5

Hypotheses About the Participation Decision ........................................................................................6

Methodology ..........................................................................................................................................8

Evaluation Design...............................................................................................................................8

Analytic Sample .................................................................................................................................9

Data and Measures .............................................................................................................................9

Analytic Approach ..............................................................................................................................9

Findings ..............................................................................................................................................11

Reasons for Participating or Not Participating in Services .....................................................................13

Predictors of Participation in In-Person Services ..................................................................................14

Predictors of Participation in Remote Services ....................................................................................17

Discussion and Conclusion ....................................................................................................................20

References ...........................................................................................................................................22

Appendix: Complete Results ..................................................................................................................23

Exhibits

Exhibit 1: Summary of Hypotheses About the Participation Decision ............................................................6

Exhibit 2: Service Initiation and Completion Rates, by Mode of Services Offered ........................................11

Exhibit 3: Survey Respondents’ Reasons for Not Completing Services ........................................................12

Exhibit 4: Predictors of Participation in In-Person Services .......................................................................15

Exhibit 5: Predictors of Participation in Remote Services ..........................................................................18

Exhibit A.1: Baseline Characteristics of In-Person and Remote Samples ....................................................23

Exhibit A.2: Relationship Between Sample Traits and Participation in In-Person Services ............................26

Exhibit A.3: Relationship Between Sample Traits and Participation in Remote Services ...............................28

Exhibit A.4: Statistically Significant Differences Between In-Person and Remote Service  

Participation Coefficients .......................................................................................................................31

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Abstract

Homebuyer education and counseling services are designed to help homebuyers think about the benefits and risks of homeownership, understand how to choose a home and appropriate mortgage, and build the financial knowledge and behaviors needed for sustainable homeownership and financial health. Using data on enrollees in HUD’s First-Time Homebuyer Education and Counseling Demonstration, this report investigates the personal characteristics that associate with program participation in—both initiation and completion of—in-person and remote homebuyer education and counseling services.

Women and homebuyers with greater education were more likely to participate in homebuyer education and counseling services in general. Those at an early stage of the homebuying process, those who reported being 

“pretty good at math,” or those who planned to purchase a home without a co-borrower were more likely to participate in  in-person services. Those who planned to spend more years living in their purchased home, who scored better on a baseline mortgage literacy quiz, or who had a higher credit score were more likely to participate in  remote  services. Agencies providing homebuyer education and counseling may find these results informative to their messaging, outreach, and approach to providing services.

the effectiveness of homebuyer education and 

Introduction and Background

counseling services for low-, moderate-, and middle-

For generations, homeownership has been a gateway 

income prospective first-time homebuyers. The study 

to the middle class and a cornerstone of the American 

began enrollment in September 2013 and thereafter 

Dream. Homeownership helps households build wealth 

(through February 2016) randomized more than 5,800 

in a variety of ways. First, homeowners are forced to 

first-time prospective homebuyers from 28 large 

save, through regularly scheduled mortgage payments, 

metropolitan areas into control and treatment groups 

a portion of each payment, reducing the principal owed.  to assess the extent to which homebuyer education Second, homeownership is a leveraged investment, 

and counseling improves their outcomes. The short-

typically allowing homebuyers to commit only a small 

term followup, which considers outcomes 12 to 18 

fraction of the home’s value as a downpayment but 

months after study enrollment, is now complete, 

realize returns on the entire value of the property 

and a short-term impact report is in progress. The 

if it appreciates. Finally, for many homeowners, 

study will examine study participants’ outcomes 3 

homeownership has tax advantages.

to 5 years after study enrollment to determine the 

longer-term impacts of homebuyer education and 

Homeownership also has risks. Unaffordable mortgage 

counseling on homeownership preparedness and search; 

payments, the opportunity costs of not investing 

financial literacy, capability, and management; and 

in better-performing assets, home maintenance 

homeownership sustainability.

responsibilities, and the higher transaction costs of 

moving can make homeownership more a burden 

The treatment groups were offered access to in-person 

than a benefit for some. Homebuyer education and 

services only (in-person group education workshops 

and one-on-one counseling), remote services only 

counseling programs are designed to help homebuyers 

(online, internet-based education, and telephone-based 

think about the benefits and risks of homeownership, 

counseling), or their choice of remote or in-person 

understand how to choose a home and mortgage, and 

services. These services were offered to treatment group 

build the financial knowledge and behaviors needed for 

members for free. The control group was not offered 

sustainable homeownership and financial health.

any services. The study’s treatment group members had 

The U.S. Department of Housing and Urban 

up to 12 months to complete homebuyer education 

Development’s (HUD’s) First-Time Homebuyer 

and counseling services, during which the study team 

Education and Counseling Demonstration evaluates 

conducted outreach to encourage service completion 

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

and tracked participation in homebuyer education and 

additionally suggest 30 to 60 minutes of individualized 

counseling services, which were provided via HUD-

counseling across a set of specific activities, which 

approved agencies. Prior reports document the study’s 

include reviewing an individual’s income, expenses, 

implementation (DeMarco et al., 2017) and early 

debt, credit report, budget, and savings; conducting 

findings about the impact of homebuyer education 

a housing affordability analysis; creating an action 

and counseling on selected outcomes (DeMarco et 

plan; providing information on delinquency prevention 

al., 2016). Within the next year, the demonstration 

counseling; and making referrals and scheduling 

will report fully on the short-term impacts of offering 

followup, as needed.

homebuyer education and counseling services, including 

whether the impact of offering in-person services differs 

In-Person Services

from the impact of offering remote services.

For the provision of in-person services, the study 

As documented by DeMarco et al. (2017), not all study 

team partnered with 63 local HUD-approved housing 

participants who were offered the free homebuyer 

counseling agencies across the study’s 28 metropolitan 

education and counseling services participated. Slightly  areas. The in-person education curriculum averaged more than one-half of treatment group members 

about 8 hours, either as a single full-day workshop 

initiated any service (either the education curriculum or 

or split during 2 half days. Most agencies provided 

one-on-one counseling), and about one-fourth of them 

workshops at least once per month. Homebuyer 

completed all services (both the education curriculum 

education workshops were interactive, using a variety 

and one-on-one counseling). Additional details related 

of tools, with guest speakers on specific topics such 

to service initiation and completion rates are presented 

as the role and services of lenders, real estate agents, 

in this report’s findings section. This report investigates 

insurance agents, home inspectors, and closing 

which characteristics of study participants predict 

attorneys (DeMarco et al., 2017).

participation in—both initiation and completion of—in-

person and remote services. Additionally, we discuss 

The one-on-one counseling sessions about 

the possible reasons why study participants chose to 

homeownership provided study participants with 

participate or not participate in the offered services. 

individualized, objective information and advice. 

Finally, we consider the implications of our findings for 

Although staff at most agencies met with study 

the marketing and delivery of homebuyer education and 

participants after the participants had attended an 

counseling services.

in-person homebuyer education workshop, some staff 

met with participants before the workshop. Counseling 

What Is Homebuyer Education and Counseling?

sessions typically occurred in 1- to 2-hour time 

blocks, with the counselor reviewing the participants’ 

HUD-approved agencies delivered the homebuyer 

information in advance in order to address the person’s 

education and counseling services offered to study 

particular situation.

participants through this demonstration. The agencies’ 

services were in line with both HUD-established 

Remote Services

standards and National Industry Standards, which 

promote consistent and high-quality provision of such 

Remote services in the study included an online, 

homebuyer education and counseling services across 

internet-based homebuyer education curriculum 

the country. Although the National Industry Standards 

and one-on-one telephone-based counseling. The 

do not dictate a specific curriculum, they provide core 

study team partnered with two national agencies 

topic areas to be covered. The education curriculum 

to provide remote services to the study’s treatment 

topics include assessing readiness to buy a home, 

group members. It partnered with eHome America, a 

budgeting and credit, financing a home, shopping for 

program run by the Community Ventures Corporation, 

a home, and maintaining a home and finances. The 

for the online education curriculum and with 

standards specify a minimum of 4 hours and suggest 8 

ClearPoint Credit Counseling Solutions for one-on-one 

hours of education to cover this content. The standards 

telephone counseling.

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

The online education platform that study participants 

lender participating in the study, not a housing 

experienced was interactive. In addition to providing 

counseling agency.

informational text, the online course featured videos, 

worksheets, and quizzes to engage participants in 

•  They were not participating in downpayment 

learning. The curriculum had six modules, each of which 

assistance programs that required them to 

included quizzes and a final test on the material covered. 

participate in homebuyer education and counseling.1

To proceed to the next module, participants had to 

•  They were willing to be part of a study of the effects 

complete quizzes with a grade of 80 percent or higher. 

of homebuyer education and counseling.

(The in-person education workshops rarely used quizzes.) 

Study participants who initiated the online education 

•  They lived in 1 of 28 metropolitan areas (decided 

curriculum were allowed to save their progress and 

on because of the three lenders’ volume).

complete the online course at their convenience.

•  They were prospective first-time homebuyers whose 

For the one-on-one telephone counseling component, 

incomes were below 120 percent of their local 

ClearPoint counselors provided individualized 

area’s median income.2

discussions about finances, budgeting, and the 

These eligibility criteria resulted in a diverse study 

mortgage process. Following the session, each client 

sample that represents prospective homebuyers with a 

received a counseling summary package by mail. 

wide variety of traits. As detailed in the study’s baseline 

The package contained a complete budget that 

report (DeMarco et al., 2017), the study sample is 

incorporated the information collected and analyzed 

racially and ethnically diverse, with 12.1 percent self-

during the session, along with the housing counselor’s 

identifying as Asian, 20.4 percent as African-American, 

recommendations. A typical one-on-one counseling 

25.0 percent as Hispanic, and 38.5 percent as non-

session lasted about 1 hour.

Hispanic White. Approximately three-fifths (60.2 

percent) of study participants are men and two-fifths 

Study Sample

(39.8 percent) are women. The study participants reflect 

The study team recruited participants via three major 

a wide range of educational attainment, with a slight 

national lenders. Those lenders made referrals to the 

majority of participants (53.5 percent) holding bachelor’s 

study based on whether the inquiring client reported 

degrees. Most participants (89.9 percent) were working 

being a low-, moderate-, middle-income first-time 

full time (that is, at least 30 hours per week) as of the 

homebuyer, lived in 1 of the study’s 28 sites, and 

study’s baseline survey. The median income for study 

agreed that the lender could provide his or her contact 

participants and their co-borrowers was $54,000 in the 

information to the study team. The evaluation imposed 

12 months prior to enrollment, with 10 percent making 

additional eligibility criteria as study enrollment took 

more than $100,000 and 10 percent making less than 

place, including clients’ internet access to permit 

$26,000 (DeMarco et al., 2017).

participation in remote services should they be assigned 

to that group, clients’ access to transportation should 

Prior Research on Participation and the 

they be assigned to the in-person services group, and 

Contribution of This Report

clients’ willingness to participate in services should they 

be assigned to a treatment group. The evaluation also 

A large number of studies have sought to validate 

screened out clients who previously had participated 

empirically the benefits of homebuyer education 

in homebuyer education and counseling or were part 

1 If enrolled in the study, such customers could have been randomly 

of a downpayment assistance program that required 

assigned to the control group, which was designed to contain only 

participants who received no homebuyer education and counseling 

participation. As such, the individuals who are part of 

services. The study therefore excluded such customers, because they 

this study sample are distinctive.

were likely to complete activities associated with homebuyer education and counseling services on their own despite being in the control group (DeMarco et al., 2017).

•  Their first point of contact on the way to receiving 

2 The study’s baseline report (DeMarco et al., 2017) fully details the homebuyer education and counseling was a 

eligibility criteria and recruitment procedures. 

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

and counseling services.3 However, few evaluate the 

geographically dispersed populations and make 

participation decision of whether or not individuals 

participation easier and knowledge more accessible. 

engage in homebuyer education and counseling 

As described by DeMarco et al. (2017), the takeup 

services, the decision to complete services, or whether 

rates in this study varied according to the mode of 

those decisions differ by service mode.4

intervention. Each mode of homebuyer education and 

counseling takes its own form and, as such, likely 

Most prior studies use a sample of individuals who 

appeals to different kinds of people.5 Related, Fannie 

received homebuyer education and counseling, rather 

Mae (2017) found that most participants preferred 

than a treatment group  offered the opportunity to 

services to be conducted in person, because they were 

take up services. This difference makes comparisons 

able to ask questions of the instructor, learn from 

between this and other research difficult. That said, 

others’ questions, and have the instructor explain 

the rates of service takeup for HUD’s First-Time 

terminology and the homebuyer process. However, 

Homebuyer Education and Counseling study of 55 

some participants expressed a preference for online 

percent for the full treatment group are in line with the  homebuyer education because of its flexibility and limited research available in the field. For example, 

convenience (Fannie Mae, 2017).

Smith, Hochberg, and Greene (2014) reported that 

about one-half of study participants who were offered 

Prior research does not explicitly address differences 

education and counseling through their study took 

in participation patterns between in-person and 

up those services. Similarly, Theodos et al. (2015) 

remote services, nor the traits associated with any 

conducted a recent randomized experiment on in-

potential differential either in preference or in 

person financial coaching and had takeup rates 

practice. As a result, this report is poised to fill an 

ranging between 37 and 56 percent.

important information gap; it aims to provide needed 

insights regarding how selection bias may affect the 

Recently, Fannie Mae (2017) conducted qualitative 

interpretation of the impact of homebuyer education 

indepth interviews and mini-group discussions with 

and counseling from quasi-experimental studies. It 

lower income, first-time homebuyers and industry 

can also provide descriptive information regarding who 

professionals to learn more about their preferences 

takes up services when offered. This research would 

and thoughts on homebuyer education. They found 

hold value on its own and also may help in interpreting 

motivational barriers to wider participation in 

results from the demonstration’s impact analysis, 

homebuyer education, as participation involves time 

particularly those related to the “treatment on the 

and inconvenience. Homebuyer education is viewed 

treated” impact (that is, the impact on those who took 

as “another hoop to jump through” during an already 

up the offer of treatment).

stressful time. Relatedly, consumers see the value in 

homebuyer education only after they participate and are  In brief, this report explores the characteristics of generally not motivated to participate without incentives  those who chose to participate in services in this (Fannie Mae, 2017).

demonstration and their reasons for participating in 

services (or not). The report addresses the following 

Homebuyer education and counseling services, once 

main research questions: Why do individuals 

offered only in person, have expanded to online 

choose to participate in services? What are the 

provision in hopes of being able to reach more 

characteristics of people who initiate or complete 

in-person and remote services? To what extent do the 

3 For a description of previous studies conducted on homebuyer 

characteristics that predict participation differ across 

education and counseling, refer to Appendix A of the study’s Baseline 

Report (DeMarco et al., 2017) at huduser.gov/portal//portal/sites/

service modes?

default/files/pdf/First-Time-Homebuyer-BaselineReport.pdf.

4 Although this study focused on takeup of homebuyer education and 

5 More broadly, approaches to online versus in-person education 

counseling services specifically, Currie (2004) offered a review of the and training are rapidly evolving. In the education sector, colleges 

literature regarding the takeup of a wide range of social programs in 

and universities, for example, are testing varied online approaches 

the United States and United Kingdom. Currie (2004) identified three 

to offering courses and degrees in order to be able to expand their 

factors that determine social program takeup— stigma, transaction costs reach and serve the needs of diverse student populations (Xu and 

of participation, and knowledge (or lack thereof).

Jaggers, 2013).

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

The next section suggests a generalized theory for 

services ( B) is greater than the cost of participating in 

individuals’ decisions about taking up and completing  services ( C).6

homebuyer education and counseling services. We 

discuss conceptually what factors might associate 

p ∙ B > C      (1)

with participation and propose hypotheses where 

The probability of benefiting from service participation 

relevant. Thereafter, the methodology section details 

(p) depends whether the information gained from those 

the design of the evaluation that provides data for 

services will help the person make a later decision 

this analysis, the sample, and the analytic approach. 

about an acceptable or desirable mortgage loan. For 

After discussing findings, we suggest implications for 

instance, those who have poor credit may think it is 

future research and practice. In brief, understanding 

unlikely that they will end up purchasing a home, and 

who participates in in-person and remote homebuyer 

so they may expect not to derive value from participating 

education and counseling services has implications 

in homebuyer education and counseling services. 

for how lenders and service providers market and 

Alternatively, those with good credit may be well 

deliver services.

positioned to secure a good mortgage product without 

participating in services. The probability of benefiting 

A Theory and Hypotheses About the 

from service participation may also be related to one’s 

Participation Decision

perceived ability to comprehend and apply new material.

This section suggests a theoretical framework 

The size of the expected benefit from homebuyer 

for understanding the decision to participate 

education and counseling services (B) depends on a 

in—either initiating or completing—homebuyer 

number of factors. For example, the benefit of services 

education and counseling services. We then 

may be lower for those who have already purchased 

discuss the variables related to that participation 

a home, because some of the material may not apply 

decision, along with hypotheses regarding the 

to them. Conversely, those unsatisfied with their 

expected direction of the relationship.

prepurchase housing arrangements may perceive 

homebuyer education and counseling services as 

In this report, we consider four measures of 

having relatively larger benefits because of their greater 

homebuyer education and counseling service 

motivation to purchase. The size of the benefit may also 

participation: (1) whether the study participant 

rise with the number of years one plans to live in the 

initiated any homebuyer education and counseling 

purchased home, because people may expect to benefit 

services; (2) whether the study participant 

(or suffer) from their home purchase decisions for a 

completed the education curriculum; (3) whether 

greater length of time.

the study participant completed one-on-one 

counseling; and (4) whether the study participant 

The benefit of participating in homebuyer education and 

completed all homebuyer education and counseling 

counseling services may be lower for those who believe 

services. We use the term “participation” to refer to 

they already know the material that services would cover 

these four measures of homebuyer education and 

(and higher for those largely unfamiliar with the home-

counseling initiation and completion collectively, 

purchase process). Some of the benefits of services 

although we analyze initiation and completion 

may alternatively be purely psychological. For instance, 

separately as well.

those who have a good credit score and high level of 

knowledge may derive utility from attending classes 

A Theory of Service Participation

6 An alternate theoretical framework for social program participation 

comes from Heckman and Smith (2004) who considered decision 

Building from Shroder’s (2002) analysis of the housing 

points at each of multiple stages of the participation process. Their 

lease-up decision, we propose that a rational person 

framework identifies the predictors of program eligibility, program 

awareness, application, acceptance into the program, and formal 

will participate in homebuyer education and counseling 

enrollment. They found that personal choices and characteristics 

services if the probability of benefiting from the services  substantially affect participation and that awareness of program eligibility is a major source of variation in participation. In contrast, we ( p) times the size of the expected benefit from the 

consider the cost-benefit ratio as the main determinant of participation.

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

or engaging with a counselor, because they may want 

time and monetary costs for travel, childcare, and so 

to be commended for what they have accomplished 

on.7 Note too that the value of an hour depends on the 

(for example, a high credit score, low debt, and high 

characteristics of and opportunity costs faced by the 

income) or because it reinforces what they have already 

potential participant— those who have better paying 

learned. Additionally, note that monetary incentives 

jobs, more children, or leisure activities that they may 

were offered—in this demonstration—for engaging 

place a greater value on their time compared with those 

in homebuyer education and counseling services. 

with more free time.

Participants received up to $150 as compensation 

for the time required to participate, with payments 

Hypotheses About the Participation Decision

for both initiating and completing services. As such, 

the demonstration introduced a factor that may not 

With this underlying theory in mind, this subsection 

influence the participation decision outside of the 

considers what specific personal characteristics are 

research setting.

hypothesized to predict service initiation or completion, 

both in general and, if appropriate, by service mode. 

Finally, the cost of service participation (C) depends on 

Exhibit 1 summarizes these hypothesized relationships, 

the time and effort required, including direct, out-of-

and it is these variables that are subsequently included 

pocket costs that permit participation. Both in-person 

in our analysis of the correlates of participation.

and remote services require time to complete the 

education curriculum (about 8 hours) and schedule 

7 Consistent with the story of locational costs, Russell, Moulton, and and complete the one-on-one counseling session. Those  Greenbaum (2014) showed that proximity to mortgage assistance application intake agencies is related to the odds of submitting a 

considering in-person services may face additional 

complete application.

Exhibit 1: Summary of Hypotheses About the Participation Decision

Hypotheses About Participation

Domain Variable

Initiation

Completion

Service Mode

Demographic measures

Race or ethnicity

•  For fear of encountering discriminatory practices in 

No hypothesis

lending or other aspects of the homebuying process, 

non-Whites might be more inclined to participate.

•  On the other hand, a legacy of discrimination (and 

associated distrust of financial institutions and 

other actors in the housing industry) could lead 

non-Whites disproportionately to rely on informal 

networks for advice on the homebuying process, 

therefore making them less included to participate.

Gender 

•  If women are concerned about discrimination (as is 

No hypothesis

the case in auto lending; Hernandez, 2004), then 

they might be more inclined than men to participate.

•  If women have lower levels of confidence than men 

(for example, Evans, 2014), then they might more 

likely than men to participate.

Age

No hypothesis

No hypothesis

Millennials might be 

more inclined toward 

participation in remote 

services, given their life’s 

experience with technology.

Who Participates in Homebuyer Education and Counseling Services and Why? 

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Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 1: Summary of Hypotheses About the Participation Decision Hypotheses About Participation

Domain Variable

Initiation

Completion

Service Mode

Demographic measures

Children in home

Parents may find it more difficult logistically  

If remote services 

to participate.

offer fewer logistical 

barriers, then parents 

may prefer remote to 

in-person services.

Education

•  More highly educated people may perceive the 

Those with more formal 

services as less necessary and therefore participate 

education may be more 

at lower rates.

comfortable in classroom 

•  Those with less education may be insecure (or 

(in-person) settings.

intimidated by the complicated process), perceive 

a need for services, and therefore participate at 

higher rates.

•  Alternatively, those with higher levels of education 

may be “education-seekers,” increasing their 

likelihood of participation; whereas, those with lower 

levels of education may be “education-avoiders,” 

which would decrease their likelihood of participation.

Selected attitudes and beliefs (respondent strongly agreed with the statement) I usually spend a lot of time  Planners are more likely both to initiate and to complete. No hypothesis planning for large purchases.

It is easy for me to stick to  No hypothesis

Determination may 

No hypothesis

and accomplish my goals.

associate with greater 

completion.

I am pretty good at math.

Confidence may associate 

Math ability might associate  No hypothesis

with lower participation or 

with greater completion.

with higher participation (as 

with “education seekers”).

Housing arrangements

Satisfied with pre-purchase  Those less satisfied in their current arrangement may No hypothesis

housing arrangements

be more likely (because of motivation to change their 

situation) to participate.

Stage of homebuyer process •  Those earlier in the process may be more likely to No hypothesis

participate because of the perceived greater value of 

the services. 

•  Those later in the process will be less likely to 

participate if they deem it too late to benefit. 

Years planned to live in 

Those who plan to live longer in their home may be more  No hypothesis purchased home 

likely to participate.

Selected measures of financial capability and knowledge

Uses a written budget

•  Being financially deliberate may associate with 

No hypothesis

greater participation. 

•  If using a written budget is a proxy for being more 

financially capable, then that type of person may 

be less likely to participate if such people deem 

themselves less in need of services.

Who Participates in Homebuyer Education and Counseling Services and Why? 

7

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 1: Summary of Hypotheses About the Participation Decision Hypotheses About Participation

Domain Variable

Initiation

Completion

Service Mode

Selected measures of financial capability and knowledge

Correct answers  

If this measure is a proxy for being financially capable,  No hypothesis (out of four) to  

then it could associate with lower participation if such 

mortgage literacy quiz

people deem themselves less in need of services.

Selected measures of creditworthiness

Plans to purchase the  

Having a co-borrower may reduce participation (if 

Having a co-borrower may 

home with a co-borrower

having a partner in the process is a proxy for having 

make it easier or harder to 

additional knowledge or support).

participate in person.

Credit score 

•  Those with better credit may be more likely to 

No hypothesis

participate (out of concern about maintaining  

good credit). 

•  Those with worse credit may be more likely to 

participate (out of recognition that they need  

help buying a home).

Had mortgage loan 

Those with a past mortgage application denial may be 

No hypothesis

application denied 

more likely to participate (out of recognition that they 

need help buying a home).

Given choice of in-person or remote services?

Choice treatment  

Those offered their choice of mode should be more 

NA

group indicator

likely to initiate and complete services that are in line 

with their preferences for how to receive services.

NA = not applicable.

Methodology

•  Remote treatment group—Offered free online 

homebuyer education and telephone counseling.

This section describes the experimental evaluation design 

of the First-Time Homebuyer Education and Counseling 

•  In-person treatment group—Offered free in-person 

Demonstration, which provides the data for this analysis 

homebuyer education and counseling.

of service participation. It then describes the sample 

used for this analysis, data and measures, and the 

As detailed by DeMarco et al. (2017), through 

analytic approach used to understand which baseline 

the first 6 months of study enrollment, the takeup 

characteristics of study participants predict participation 

rate—that is, the percentage of participants who 

in homebuyer education and counseling services.

had initiated services—for participants offered in-

person services was about 26 percent, much lower 

Evaluation Design

than the study’s target rate of at least 50 percent. 

Consequently, HUD and the study team decided 

The First-Time Homebuyer Education and Counseling 

to modify the study design such that the in-person 

Demonstration used a randomized experimental design, 

treatment group was replaced with a choice treatment 

in which eligible prospective first-time homebuyers were  group. During the study’s eligibility assessment, randomly assigned to a treatment group that was offered  the choice treatment group was asked whether they free homebuyer education and counseling services or to 

preferred to complete homebuyer education and 

a control group that was not offered services. Initially, 

counseling services in person at a local housing 

the study design randomly assigned eligible first-time 

counseling agency or remotely over the internet and by 

prospective homebuyers into one of three groups.

telephone. This baseline preference determined which 

•  Control group—Not referred to homebuyer 

mode of services choice treatment group members 

education or counseling services through the study.

were offered. Study participants who enrolled in the 

Who Participates in Homebuyer Education and Counseling Services and Why? 

8

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

study on or after September 16, 2014 were randomly 

includes treatment group members assigned to the 

assigned to one of these three groups.

remote treatment group and those members of the 

choice group who stated a baseline preference for 

•  Control group—Not referred to homebuyer 

remote services. Combining the sample in this manner 

education or counseling services through the study.

ensures maximum sample size for each mode of service 

•  Remote treatment group—Offered free online 

delivery.9 Appendix Exhibit A.1 reports the baseline 

homebuyer education and telephone counseling.

characteristics of those offered in-person and remote 

services, and further information on the characteristics 

•  Choice treatment group—Offered their choice of 

of the sample is available in the study’s baseline report 

free remote or in-person homebuyer education and 

(DeMarco et al., 2017).

counseling services.

Across the entire study enrollment period, the random 

Data and Measures

assignment ratio was 42 percent control group, 29 

The data sources used for this analysis and the measures 

percent remote treatment group, and 29 percent in-

constructed from them are summarized as follows.

person or choice treatment group.

•  A baseline survey of study participants and 

The study team used two approaches to encourage 

data provided by a credit bureau capture the 

study participants assigned to a treatment group to 

characteristics of study participants prior to random 

initiate and complete services— outreach and incentive 

assignment. These baseline characteristics include 

payments. The study team contacted treatment group 

measures of study participants’ demographics, 

members during the study’s enrollment period to 

attitudes and beliefs, housing arrangements, financial 

provide them with information and encourage them 

capability and knowledge, and creditworthiness.

to initiate and complete services. Following random 

assignment, participants who were assigned to a 

•  eHome America, ClearPoint, and local housing 

treatment group received up to $150 to compensate 

counseling agencies provided data on the services 

them for the time required to participate in homebuyer 

received by treatment group members.

education and counseling services. These payments 

•  A short-term followup survey, administered 

were meant to encourage initiation and completion of 

approximately 12 to 18 months after study 

the intervention’s offered services.8

participants enrolled in the study, captures reasons 

why some treatment group members did not 

Analytic Sample

complete homebuyer education and counseling 

This analysis uses the individuals who were randomized 

services. Overall, 76 percent of treatment group 

to one of the study’s treatment groups, and it excludes 

members completed the short-term followup survey.

the control group. We predict service participation 

•  A series of focus groups with a small number 

separately for treatment group members who were 

of treatment group members explored their 

referred to in-person services and treatment group 

experiences with homebuyer education and 

members who were referred to remote services. The 

counseling services, including expressed reasons for 

sample referred to in-person services includes both 

taking up services or not.

treatment group members assigned to the in-person 

treatment group (prior to the study redesign) and those 

study participants assigned to the choice group who 

Analytic Approach

stated a baseline preference for in-person services. 

The analysis models the relationship between 

Likewise, the sample referred to remote services 

service participation—including both initiation and 

completion—and the baseline characteristics of study 

8 The payment was made in two parts. First, participants received $50 

when they initiated services with their assigned housing counseling 

agency. Second, they received $100 when they completed all 

9 This sample combination strategy is in line with the HUD-approved 

homebuyer education and counseling services.

plans for the study’s impact analysis.

Who Participates in Homebuyer Education and Counseling Services and Why? 

9

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

participants using ordinary least squares regression. We group members who were referred to remote services.13 

consider four measures of participation in homebuyer 

We were primarily interested in the coefficients β, and 

education and counseling services: (1) whether the 

δ: β provides estimates of the relationship between 

study participant initiated any services; (2) whether the 

the study participants’ baseline characteristics and 

study participant completed the education curriculum; 

service participation; δ provides an estimate of the 

(3) whether the study participant completed one-on-

relationship between being given the choice of service 

one counseling; and (4) whether the study participant 

modes (relative to being offered a mode of services 

completed all homebuyer education and counseling 

without a choice) on service participation. The baseline 

services. The model is specified as—

characteristics include a wide range of measures 

capturing study participants’ demographics, attitudes 

Pis = α + βXis +δChoiceis + μs + eis,   (2)

and beliefs, housing arrangements, financial capability 

where

and knowledge, and creditworthiness, which were 

hypothesized to predict participation in homebuyer 

•  Pis is a measure of participation in homebuyer 

education and counseling services.14, 15 We selected 

education and counseling services (coded 1 

measures that are either relevant to policy or practice 

for participants and 0 for nonparticipants) for 

or explicitly hypothesized to have a relationship with 

participant  i in site  s.

service participation. Although the model includes 

a large and diverse set of these characteristics, we 

•  Xis is a vector of individual background 

recognize that certain confounding (and otherwise 

characteristics for participant  i in site  s.

unmeasured) variables may be omitted from the model. 

•  Choice

Such potential omissions mean that reported estimates 

is is an indicator for whether participant  i  in 

site  s was given the choice of being referred to in-

should be interpreted as associations between the 

person or remote services.

baseline characteristics and service participation and 

may not isolate causal relationships.

•  μs is a set of site fixed effects.

•  eis is a random error term.10, 11, 12

13 Findings were generally similar when using logistic regression.

14

Using ordinary least squares regression, we estimated 

 The full set of baseline characteristics included in the model is 

reported in Exhibits A.2 and A.3. 

this model separately for treatment group members 

15 To avoid analytic problems associated with multicollinearity, 

who were referred to in-person services and treatment 

Tabachnick, Fidell, and Osterlind (2001) recommended that 

intercorrelations among covariates should generally be below 0.70. 

We estimated a correlation matrix of all baseline characteristics 

10 Here, “site” refers to the 28 metropolitan areas where study 

included in the prediction model. Among the 53 covariates’ 1,378 

participants enrolled. 

pairwise comparisons, the vast majority (1,338) showed no correlation 

(the correlation coefficient was less than 0.30). Among the pairwise 

11 Standard errors are clustered at the site level. 

comparisons with correlation coefficients greater than or equal to 

12 Although all study participants completed the baseline survey, 

0.30, 33 showed a low correlation (correlation coefficient of 0.30-

some question-specific nonresponse occurred. Additionally, the 

0.49), 5 showed a moderate correlation (correlation coefficient 

baseline credit bureau data matched to about nine-tenths of study 

of 0.50-0.69), and only 2 showed a high correlation (correlation 

participants. To prevent dropping observations with missing data 

coefficient of 0.70 or higher). In general, the only covariates that have when predicting participation, we followed standard practice (for 

pairwise correlations greater than 0.50 are those that are part of the example, Shroder, 2002); missing values for baseline characteristic 

same categorical family (for example, married; divorced, widowed, 

data were coded as the reference category for binary or categorical 

or separated; single and never married). The one exception is the 

measures and were coded as the sample mean for continuous 

correlation between household size and presence of children—two 

measures. For example, 1.2 percent of treatment group members 

closely related variables—that have a correlation coefficient of 0.53. 

had missing race-ethnicity data and were therefore coded as non-

Our conclusion is that these correlations should not raise concerns 

Hispanic White (the reference category). 

over multicollinearity within the data. 

Who Participates in Homebuyer Education and Counseling Services and Why? 

10

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Findings

Overall, 55 percent of those offered homebuyer 

about one-third completed one-on-one counseling, and 

education and counseling services initiated any 

one-fourth completed all services.16

services—that is, they started either the education 

curriculum or one-on-one counseling (see Exhibit 2). 

16 We do not examine having completed only the education curriculum 

About one-third completed the education curriculum, 

or only the one-on-one counseling. 

Exhibit 2: Service Initiation and Completion Rates, by Mode of Services Offered Completed 

Completed 

Initiated  

Completed  

Education 

One-on-One 

Any Services 

All Services 

Sample Size

Curriculum  

Counseling  

(%)

(%)

(%)

(%)

Choice treatment group  

32.0

25.8

17.9

15.5

291

(in-person preference)a

In-person treatment group

26.0

23.6

16.1

14.1

516

Difference 6.0

2.1

1.8

1.3

—

Choice treatment group  

64.3

34.9

43.8

31.0

856

(remote preference)b

Remote treatment group

63.3

31.3

43.2

27.1

1,670

Difference

1.0

3.6

0.6

3.8*

—

Full treatment group sample

55.0

30.6

37.0

25.1

3,333

* Difference is statistically significant (two-sided t-test) at the p<0.05 level.

a Includes choice treatment group members who stated a baseline preference for in-person services. Choice treatment group members were permitted to change their preference after random assignment. In total, 39 choice group members changed preference from in-person to remote after random assignment. Of the 39 choice group members who changed preference from in-person to remote after random assignment, 26 

initiated remote services, and 10 completed all remote services.

b Includes choice treatment group members who stated a baseline preference for remote services. Choice treatment group members were permitted to change their preference after random assignment. In total, one choice group member changed preference from remote to in-person after random assignment. The choice group member who changed preference from remote to in-person after random assignment initiated in-person services but did not complete all in-person services.

Note: Study participants who withdrew from the study are excluded.

Sources: Takeup data from eHome America, ClearPoint, and local housing counseling agencies Who Participates in Homebuyer Education and Counseling Services and Why? 

11

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 3: Survey Respondents’ Reasons for Not Completing Services

* Difference between the in-person and remote group is statistically significant (p<0.05).

Notes: For the “Reasons for not completing education” panel, the in-person services sample includes 443 treatment group members who did not complete the offered in-person education curriculum and answered the followup survey, and the remote services sample includes 1,136 

treatment group members who did not complete the offered remote education curriculum and answered the followup survey. For the “Reasons for not completing counseling” panel, the in-person services sample includes 493 treatment group members who did not complete the offered in-person one-on-one counseling and answered the followup survey, and the remote services sample includes 896 treatment group members who did not complete the offered remote one-on-one counseling and answered the followup survey.

Source: Short-term followup survey of study participants

The rates at which study participants initiated or 

As noted previously, the low takeup and completion 

completed services differ meaningfully between 

rates for in-person services as of September 2014 

the in-person and remote service modes, with both 

led the study team to redesign the original in-person 

initiation and completion rates much lower for those 

treatment group as a choice treatment group, in which 

offered in-person services than for those offered 

study participants assigned to this group could choose 

remote services. Nearly two-thirds of those offered 

in-person or remote services. Exhibit 2 presents service 

remote services (63 percent) initiated either online 

initiation and completion rates for the choice treatment 

education or telephone counseling. In contrast, 

group—separately for those who expressed a preference 

slightly more than one-fourth (26 percent) of those 

at baseline for receiving in-person services and for those 

offered in-person services initiated either an in-

who expressed a preference at baseline for receiving 

remote services.

person education workshop or counseling. About 27 

percent of those offered remote services completed 

Some patterns are apparent from examining the 

all homebuyer education and counseling services, and 

choice treatment group by the expressed preference 

about 14 percent of those offered in-person services 

for mode of service. First, study participants clearly 

completed all services.

preferred remote services—a full three-fourths of the 

Who Participates in Homebuyer Education and Counseling Services and Why? 

12

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

sample stated a preference for receiving remote services  Survey Respondents’ Reasons for Not at study enrollment, as shown by the sample sizes 

Completing Services

(856 versus 291) for choice treatment group members 

According to responses to the short-term followup 

with remote and in-person preferences. This finding 

survey, the primary reason for not completing services 

is consistent with prior research, which has found 

was inconvenience (see Exhibit 3). When asked why 

that people prefer online education and telephone 

they did not complete the education curriculum, 

counseling to in-person services (Baron and Staten, 

48 percent of those offered the in-person education 

2012). Furthermore, choice treatment group members 

curriculum and 41 percent of those offered the remote 

who expressed a preference for in-person services had a  education curriculum reported that “homebuyer service initiation rate of 32 percent, notably lower than 

education did not work for my schedule.” Similarly, 

the 64 percent initiation rate for those who expressed a 

those who did not complete one-on-one counseling 

preference for remote services, despite the service mode  indicated that inconvenient scheduling was a barrier, offer being in line with their stated preference.

with 31 percent of those offered in-person counseling 

The vast majority (three-fourths) of the choice group 

and 20 percent of those offered remote counseling 

selected remote services, and those who selected 

reporting that “counseling was not offered on days or 

remote services experienced relatively high participation  times that worked for my schedule.” Those who did rates. This finding shows that the study redesign 

not complete in-person services were generally more 

(replacing the in-person treatment group with a choice 

likely to cite scheduling concerns relative to those who 

treatment group) successfully increased participation 

did not complete remote services.

rates for the full treatment group sample. That said, 

Of those offered in-person services, 20 percent 

we do not generally find evidence that those in the 

reported “the agency was too far away” as an obstacle 

choice group had higher participation rates than those 

to their participation in the education curriculum, and 

in the in-person or remote treatment groups who were 

13 percent reported “the agency was too far away” 

offered the same service, once controlling for other 

as an obstacle to their participation in one-on-one 

factors. For example, although 63 percent of the remote  counseling. A few study participants who were offered treatment group initiated any homebuyer education and 

access to remote services also gave reasons related 

counseling services, 64 percent of choice treatment 

to location, which may reflect a misunderstanding (or 

group members who selected remote services initiated 

faulty memory) of the services they had been offered 

any services. This 1-percentage point difference in 

(DeMarco et al., 2016).

initiation rates is not statistically significant, indicating 

that those given the choice of services who select 

Interestingly, those offered the remote education 

remote are no more or less likely to initiate services as 

curriculum were twice as likely to report that the 

those offered remote services without a choice. The 

length of “the course was too long” compared with 

one exception to this general pattern is that choice 

those offered the in-person education curriculum, 

treatment group members who expressed a preference 

19 versus 10 percent. This finding indicates that a 

for remote services were more likely to complete all 

day-long, in-person education workshop was generally 

homebuyer education and counseling services (by nearly  perceived as acceptable by those offered in-person 4 percentage points) relative to those offered remote 

services, but those offered remote services were 

services without a choice.

reluctant to spend the same amount of time in front of 

a computer.

Reasons for Participating or Not 

Fewer than 10 percent of those who did not complete 

Participating in Services

one-on-one counseling services—regardless of 

This section begins by reporting followup survey 

the service mode offered to them—reported that 

respondents’ reasons for not completing services. 

unappealing content was the reason. A somewhat 

It then reports reasons reported by focus groups for 

larger percentage (about 17 percent) said that they 

participating in services (or not).

thought the education curriculum did not apply 

Who Participates in Homebuyer Education and Counseling Services and Why? 

13

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

to them, because they had already bought a house 

services explained that they relied on other sources of 

(DeMarco et al., 2016).17, 18

information about the homebuying process, including 

friends, family, or their realtor (DeMarco et al., 2017).

Additional insights on reasons for engaging and not 

engaging in the services offered come from the study’s 

Focus Group Participants’ Reasons for Participating  

focus groups. Focus group participants who were offered 

in Services

remote and in-person services said that the primary 

reason they took up homebuyer education and counseling  Among those focus group participants who did take services was because they believed the information 

up the offer of services, many said that they did so 

would be valuable. However, the reasons given for not 

because they expected the homebuying process would 

taking up services tended to differ based on whether 

be complicated and stressful, and they thought the 

people had been offered in-person services or remote 

information provided through education and counseling 

services. Consistent with the survey results, those offered  would help them through the process. A few participants in-person services reported more logistical barriers in 

noted that their past attempts to buy a home had been 

completing services than those offered remote services.

unsuccessful, and they thought completing education 

and counseling might help them succeed. Interestingly, 

findings from this participation analysis (reported in 

Focus Group Participants’ Reasons for Not Participating  

Exhibit 5) indicate that those who had had a mortgage 

in Services

loan application denied by another lender are actually 

Focus group participants were recruited for their ability 

less likely to take up remote services.

to discuss reasons why they did or did not participate 

in the study’s services. Many focus group participants 

Focus group participants expressed the view that the 

said that, prior to hearing about the study, they were not  decision to buy a home was important and would aware of homebuyer education and counseling services. 

have a big impact on their future. Some focus group 

Reasons nonparticipants gave for their nonparticipation 

participants also noted that access to free services and 

in services included busy schedules, childcare needs, 

the study’s incentive payment for completing education 

and the education curriculum being too long. The 

and counseling encouraged them to take up services 

reasons tended to vary by service delivery mode. Those 

(DeMarco et al., 2017).

who had been referred to in-person services spoke about 

scheduling difficulties, the length of the course, and the  Predictors of Participation in In-Person Services agency’s location. Those who had been offered remote 

For this analysis, we explored whether a wide range of 

services also cited their schedules and the length of 

measures related to study participants’ demographics, 

the course as reasons for not participating in services. 

attitudes and beliefs, housing arrangements, financial 

They also said that they already spend too much time 

capability and knowledge, and creditworthiness predicts 

on a computer throughout the day and did not want to 

participation. This first section considers how these 

spend another 6 to 8 hours on a computer completing 

measures predict participation specifically in in-person 

the education curriculum. Some participants said 

services. Appendix Exhibit A.2 reports the full results. 

they “just haven’t gotten around to it yet.” Some 

Here, we distill the information—both excluding 

focus group participants who had not engaged in the 

results that are not statistically significant and 

excluding discussion of the coefficients’ magnitude—

17 The study team conducted outreach to all treatment group study 

for focus on more general patterns. Exhibit 4 reports 

participants to encourage take up and completion of homebuyer 

these abbreviated findings, indicating a “+” symbol 

education and counseling services through the study. Through these 

outreach efforts, the study team assessed participants’ stage in the 

where the baseline characteristic has a statistically 

homebuying process (that is, not yet started home search, visited 

significant  positive effect on service participation (at 

homes, made an offer, already purchased, and so on) and emphasized 

how certain topics covered would be relevant to their situation. 

the p<0.05 significance level). Correspondingly, the 

Regardless of the stage in the homebuying process, the study team 

“–” symbol indicates that the baseline characteristic 

encouraged participants to engage in services.

has a statistically significant  negative effect on service 

18 Of those treatment group members who had already purchased a 

home as of study enrollment, 26 percent completed education.

participation (again, at the p<0.05 significance level).

Who Participates in Homebuyer Education and Counseling Services and Why? 

14

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 4: Predictors of Participation in In-Person Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Demographic measures

Race or ethnicity (reference: non-Hispanic 

White)

Hispanic

Black/African American

+

Other race

Male (reference: female)

–

–

–

–

Age (reference: under 30)

30 to 45

46 or older

Plans to have children in purchased home

–

Education (reference: bachelor’s degree or 

higher)

Associate’s degree

Some college, but no degree 

–

–

–

–

High school diploma or less

Selected attitudes and beliefs (respondent strongly agreed with the statement) I usually spend a lot of time planning for  

large purchases

It is easy for me to stick to and accomplish my 

goals

I am pretty good at math

+

+

Housing arrangements

Satisfied with prepurchase housing 

arrangements

Made an offer, signed a purchase agreement,  

–

–

–

–

or purchased a home (reference: early stage)

Years planned to live in purchased home  

(reference: less than 6 years)

6 to 10 years

11 years or more

Selected measures of financial capability and knowledge

Uses a written budget

Number of correct answers (out of 4) to  

mortgage literacy quiz

Notes: The sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures. Exhibit A.2 shows the coefficients for all the variables considered as predictors of participation in in-person services. This exhibit provides an abbreviated presentation of these findings, where the “+” symbol indicates that the baseline characteristic has a statistically significant positive effect on service participation at the p<0.05 significance level. Corresponding, the “–” symbol indicates that the baseline characteristic has a statistically significant negative effect on service participation at the p<0.05 significance level.

Sources: Participation data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data.

Who Participates in Homebuyer Education and Counseling Services and Why? 

15

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 4: Predictors of Participation in In-Person Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Selected measures of creditworthiness

Plans to purchase the home with a co- borrower

–

–

Credit score (reference: 740 or more)

Less than 620

620 to 679

680 to 739

Had mortgage loan application denied by  

another lender

Given choice of in-person or remote services?

Choice treatment group indicator

Summary information

Mean of participation indicator

28.1%

24.4%

16.7%

14.6%

Sample size

807

807

807

807

R-squared

0.166

0.187

0.144

0.155

Notes: The sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures. Exhibit A.2 shows the coefficients for all the variables considered as predictors of participation in in-person services. This exhibit provides an abbreviated presentation of these findings, where the “+” symbol indicates that the baseline characteristic has a statistically significant positive effect on service participation at the p<0.05 significance level. Corresponding, the “–” symbol indicates that the baseline characteristic has a statistically significant negative effect on service participation at the p<0.05 significance level.

Sources: Participation data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data.

Across all four measures of in-person service 

participate in services or more comfortable with 

participation (initiated any services, completed 

the idea, or their greater experience with formal 

education curriculum, completed one-on-one 

education may make them amenable to engaging in 

counseling, and completed all services), men were less 

services such as those offered in this demonstration.

likely than women to participate in in-person services.19

Race or ethnicity, age, marital status, and household 

Next, education is also associated with participation. 

size were generally not statistically significant 

Those with some college but no degree were less 

predictors of participation in in-person services.

likely to participate in services relative to those with a 

bachelor’s degree or higher.20 Those with a bachelor’s 

Treatment group members who indicated that they 

degree or higher may generally be more motivated to 

were “pretty good at math” were more likely to 

initiate in-person services and to complete the in-

19 Using data from the short-term followup survey, we tested whether 

person education curriculum, as hypothesized. One 

men and women gave different reasons for not completing services 

possible explanation for this finding is that those 

(see Exhibit 3 for common survey responses). For example, we 

tested whether men were more likely than women to say “homebuyer 

who were less confident in their quantitative skills 

education did not work for my schedule.” We did not find any 

might be apprehensive about attending an in-person 

evidence that men and women gave different reasons for not 

completing services.

education workshop in which they might have to 

20 Those with a high school diploma or less are also generally less 

reveal their vulnerabilities by, for example, being 

likely to participate in services relative to those with a bachelor’s 

called on to answer a quantitative question in a 

degree or higher, but service participation is not statistically different across these two groups.

group setting.

Who Participates in Homebuyer Education and Counseling Services and Why? 

16

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Treatment group members at a later stage of the home 

Interesting to note is that measures of financial 

purchase process at the time of study enrollment 

capability and knowledge were not meaningful 

(that is, those who had already made an offer, signed 

predictors of participation in in-person services. 

a purchase agreement, or purchased a home) were 

Likewise, no evidence showed that those given the 

generally less likely to participate in in-person services 

choice of in-person or remote services were more likely 

relative to those at an earlier stage in the process, as 

to participate in in-person services relative to those who 

hypothesized. Those who were further along in the home  were referred to in-person services without a choice.22

purchase process may believe they have less to gain 

from the education curriculum, because they may have 

Predictors of Participation in Remote Services

already made decisions or completed the necessary 

steps on the path toward homeownership. Responses to 

The same wide range of measures related to study 

the short-term followup survey affirm that those further 

participants’ demographics, attitudes and beliefs, 

along in the home purchase process were more likely 

housing arrangements, financial capability and 

than those at earlier stages to indicate that they did 

knowledge, and creditworthiness were examined 

not think the education curriculum applied to them. 

with respect to participation in remote services. 

As an alternative explanation, those who had already 

(See Appendix Exhibit A.3 for full results.) As with 

purchased a home might not want to learn that any of 

the in-person services participation analysis, Exhibit 

their past decisions were misguided.

5 provides an abbreviated presentation of these 

findings, where the “+” symbol indicates that the 

Those who planned to purchase a home with a co-

baseline characteristic has a statistically significant 

borrower were less likely than those who planned to 

positive effect on service participation, and the “–” 

purchase a home solo to initiate any in-person services 

symbol indicates that the baseline characteristic has 

or complete the in-person education curriculum. A 

a statistically significant negative effect on service 

possible explanation is that those who planned to 

participation (at the p<0.05 significance level).

purchase with a co-borrower may feel that the education 

curriculum has less value, because they have added 

help navigating the home purchase process. Further, 

as hypothesized, the presence of a co-borrower may 

increase the challenge of scheduling a time for in-person 

services if both individuals would want to attend.21

22 These findings align with those presented in Exhibit 2, in which, 

using a simple t-test, we found no evidence that participation rates 

21 Co-borrowers were permitted to accompany the study participant to 

for choice treatment group members who selected in-person services 

in-person services.

were different from participation rates for the in-person group.

Who Participates in Homebuyer Education and Counseling Services and Why? 

17

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 5: Predictors of Participation in Remote Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Demographic measures

Race or ethnicity  

(reference: non-Hispanic White)

Hispanic

–

Black/African American

Other race

–

Male (reference: female)

–

–

–

–

Age (reference: under 30)

30 to 45

+

46 or older

Plans to have children in purchased home

Education (reference: bachelor’s  

degree or higher)

Associate’s degree

Some college, but no degree 

–

–

High school diploma or less

–

–

–

–

Selected attitudes and beliefs (respondent strongly agreed with the statement) I usually spend a lot of time planning  

+

for large purchases

It is easy for me to stick to and  

accomplish my goals

I am pretty good at math

Housing arrangements

Satisfied with prepurchase housing 

–

arrangements

Made an offer, signed a purchase agreement,  

or purchased a home (reference: early stage)

Years planned to live in purchased home 

(reference: less than 6 years)

6 to 10 years

+

+

+

+

11 years or more

+

+

+

Selected measures of financial capability and knowledge

Uses a written budget

+

Number of correct answers (out of 4)  

+

+

+

to mortgage literacy quiz

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures. Exhibit A.3 reports the coefficients for all the variables considered as predictors of participation in remote services. This exhibit provides an abbreviated presentation of these findings, in which the “+” symbol indicates that the baseline characteristic has a statistically significant positive effect on service participation at the p<0.05 significance level. Corresponding, the “–” symbol indicates that the baseline characteristic has a statistically significant negative effect on service participation at the p<0.05 significance level.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

18

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit 5: Predictors of Participation in Remote Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Selected measures of creditworthiness

Plans to purchase the home with a co-borrower

Credit score (reference: 740 or more)

Less than 620

620 to 679

–

–

680 to 739

–

–

–

–

Had mortgage loan application denied  

–

by another lender

Given choice of in-person or remote services?

Choice treatment group indicator

+

Summary information

Mean of participation indicator

63.6%

32.5%

43.4%

28.4%

Sample size

2,526

2,526

2,526

2,526

R-squared

0.068

0.063

0.060

0.063

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures. Exhibit A.3 reports the coefficients for all the variables considered as predictors of participation in remote services. This exhibit provides an abbreviated presentation of these findings, in which the “+” symbol indicates that the baseline characteristic has a statistically significant positive effect on service participation at the p<0.05 significance level. Corresponding, the “–” symbol indicates that the baseline characteristic has a statistically significant negative effect on service participation at the p<0.05 significance level.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data

Across all four measures of remote service participation,  and counseling to ensure that they are making the best men were less likely than women to participate in 

possible decision for their future, as hypothesized.

remote services. In addition, treatment group members 

with lower levels of educational attainment at baseline 

Those with higher scores on a four-question baseline 

were less likely to participate in remote services relative  measure of baseline mortgage knowledge were more to those with a bachelor’s degree or higher.

likely to participate in remote services than those with 

lower scores. Those with more baseline knowledge about 

Across both the in-person and remote service modes, 

the home purchase process may be more interested in 

study participants were generally more likely to 

or comfortable with engaging in homebuyer education 

participate in homebuyer education and counseling 

and counseling services. In contrast, this finding 

services if they were female or had a college degree, 

implies that those who have less mortgage knowledge 

indicating that these traits were important predictors of 

are less likely to engage in services, although they may 

service participation regardless of service mode.

benefit most from these services.

Those who planned to live in their purchased home for 

Related to measures of creditworthiness, those with 

6 or more years were generally more likely to participate  a baseline credit score of 740 and higher were more in remote services than those who planned to live in 

likely to participate than those with scores between 620 

their home for less time. One possible explanation is 

and 739. A possible reason for this observation is that 

that those who planned to live in their purchased home 

those with higher baseline credit scores may be more 

long term may be more motivated to seek education 

incentivized to participate in services to maintain their 

Who Participates in Homebuyer Education and Counseling Services and Why? 

19

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

good credit. In comparison, they may derive utility from enrollment. They also were more likely to complete 

attending classes that reinforce what they have already 

the education curriculum if they reported being 

learned or engaging with a counselor that commends 

“pretty good at math”  or if they planned to purchase 

them for their good credit.

a home without a co-borrower. We do not find that 

these same traits were associated with participation 

Finally, those given the choice of in-person or remote 

in remote services.

services who chose the remote service mode were 

more likely to complete all homebuyer education and 

Considering remote services specifically, we find that—

counseling services relative to those who were referred 

to remote services without a choice. However, we find 

•  Those referred to remote services were more likely 

that study participants who chose remote services 

to participate in services if they planned to spend 

were not statistically significantly more or less likely 

more years living in their purchased home,  scored 

to initiate any services compared with those offered 

better on a baseline mortgage literacy quiz, or had 

remote services.

a baseline credit score of 740 or higher. We do not 

find evidence that these same traits were associated 

with participation in in-person services.

Discussion and Conclusion

Considering offering treatment group members their 

This report examines a large array of traits 

choice of participating in in-person services or in remote 

and identifies some patterns related to service 

services, we find that—

participation. Across both in-person and remote service 

modes, we find the following.

•  Those given a choice of service mode were equally 

as likely to participate in services as those offered 

•  Women were more likely to participate in homebuyer 

services without a choice. This indicates that 

education and counseling services.  This finding is 

providing clients with the choice of in-person or 

in line with our prior hypothesis that women might 

remote service modes does not generally lead to 

be more likely to participate (due to perceived or 

greater (or lesser) participation, once controlling for 

actual discrimination in financial markets or due to 

other factors.

gender differences in confidence).

Findings from focus groups and followup survey 

•  Those with relatively greater education were more likely  responses provide insight into treatment group members’ 

to participate in homebuyer education and counseling  reasons for engaging in services, with some apparent services. Our prior hypotheses posited explanations 

differences between those offered in-person and remote 

for either direction of effect; and the results of this 

services. Treatment group members participating 

analysis provide support for the hypothesis that those  in focus groups reported that they took up services, with greater education (perhaps, because of their 

because they knew the homebuying process would be 

being “education seekers”) are those who are more 

complicated, and they believed the information provided 

likely to participate.

through homebuyer education and counseling services 

•  Race or ethnicity, age, marital status, and household 

would help them through the process. Reasons for not 

size were not statistically significant predictors 

taking up services or not completing services tended 

of participation in homebuyer education and 

to vary by service delivery mode. Those who had been 

counseling services.

referred to in-person services spoke about scheduling 

difficulties, the length of the course, and the agency’s 

Considering in-person services specifically, we find that—

location. Those who had been offered remote services 

cited competing priorities on their schedules and the 

•  Those referred to in-person services were more 

length of the course (DeMarco et al., 2017).

likely to participate in homebuyer education and 

counseling services if they were at an early stage 

Agencies providing homebuyer education and 

of the homebuying process at the time of study 

counseling services may find these findings informative 

Who Participates in Homebuyer Education and Counseling Services and Why? 

20

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

to their messaging, outreach, and approach to providing  homeownership education and counseling clients—

services. For example, the fact that certain traits are 

indicate the potential that this report’s findings may 

associated with participation in services may inform 

not fully carry over to the other groups. Still, the study 

the way agencies decide to market and provide their 

sample includes a large number of participants who vary 

services to meet potential clients’ interests, preferences,  in their sociodemographic composition across 28 large and needs. For example, messages that connect to the 

metropolitan areas and have characteristics that reflect 

findings reported here include the following.23

a sizable share of the population of low-, moderate-, 

and middle-income prospective first-time homebuyers. 

•  “I’m good at math, but I’m not going to commit to a 

In sum, the report findings offer evidence on which 

$300,000 mortgage without some preparation.”

characteristics predict service participation and 

•  “I went to school for 4 years to get the right job, I can 

experiences with services for a robust sample of low-, 

go to school for 8 hours to get the right house.”

moderate-, and middle-income prospective first-time 

homebuyers (DeMarco et al., 2017).

•  “I have good credit, and I want it to stay that way 

after I buy a house.”

The analysis of factors associated with participation 

considers a wide variety of traits that exist in 

•  “I’m single, but I’m tired of renting.”

populations outside of this study sample, including 

those of clients suited to homebuyer education and 

•  “I am a woman, and I want a house of my own.”

counseling services. That said, it is important to recall 

The analysis of factors associated with participation 

that this research sample comes by way of lender 

considers a wide variety of traits that exist in 

referrals and differs somewhat from the standard 

populations outside of this study sample, including 

clientele that agencies target and serve.25

those of clients suited to homebuyer education and 

It is also important to note that this analysis does not 

counseling services. That said, it is important to recall 

reveal whether homebuyer education and counseling 

that this research sample comes by way of lender 

services are effective, or whether one mode of service 

referrals and differs somewhat from the standard 

provision is more effective than the other. Instead, the 

clientele that agencies target and serve.24 The referral 

analysis provides an assessment of which individual 

process excluded people who had a participation 

traits associate with service participation. Interested 

requirement associated with a downpayment assistance 

readers should refer to the study’s Early Insights Report 

program, and the referral process also largely included 

(DeMarco et al., 2016) for initial estimates of the 

people who were not familiar with homebuyer education  impact of offering homebuyer education and counseling services. This report’s findings, therefore, are most 

services on selected outcomes and to the study’s 

relevant to populations that are similar to this study 

forthcoming Short-Term Impact Report for analysis of 

sample at baseline: low-, moderate-, and middle-

impacts on a more complete set of outcomes, both 

income households that have contacted a mortgage 

overall and by service mode. Until then, the research 

lender about acquiring a mortgage for a first-time home 

presented here highlights the preferences and traits 

purchase. Differences in the demographic makeup of 

associated with service participation for the study 

the study sample and other groups—such as all renters,  sample of HUD’s First-Time Homebuyer Education and all first-time homeowners, and other prepurchase 

Counseling Demonstration.

23 We are grateful to Mark Shroder for making these specific 

suggestions.

24 For instance, the study sample contains a comparatively large 

25 For instance, the study sample contains a comparatively large 

share of men relative to the population of prepurchase homebuyer 

share of men relative to the population of prepurchase homebuyer 

education and counseling clients. The study sample is also more 

education and counseling clients. The study sample is also more 

highly educated and has higher average income than the population of 

highly educated and has higher average income than the population of 

prepurchase homebuyer education and counseling clients (DeMarco et 

prepurchase homebuyer education and counseling clients (DeMarco et 

al., 2017).

al., 2017).

Who Participates in Homebuyer Education and Counseling Services and Why? 

21

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

References

Baron, John, and Michael E. Staten. 2012. Is 

Paternoster, Raymond, Robert Brame, Paul Mazerolle, 

Technology-Enhanced Credit Counseling as Effective as 

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In-Person Delivery? Working paper 2012-WP-05. Terre 

Test for the Equality of Regression Coefficients,” 

Haute, IN: Networks Financial Institute. http://papers.

Criminology 36 (4): 859–866.

ssrn.com/sol3/papers.cfm?abstract_id=2088917.

Russell, Blair D., Stephanie Moulton, and Robert T. 

Currie, Janet. 2004. The Take Up of Social Benefits. 

Greenbaum. 2014. “Take-Up of Mortgage Assistance 

NBER Working Paper No. 10488. Cambridge, MA: 

for Distressed Homeowners: The Role of Geographic 

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nber.org/papers/w10488.

Shroder, Mark. 2002. “Locational Constraint, Housing 

DeMarco, Donna, Nichole Fiore, Debbie Gruenstein 

Counseling, and Successful Lease-Up in a Randomized 

Bocian, Shawn Moulton, and Laura Peck. 2016.  The 

Housing Voucher Experiment,”  Journal of Urban 

First-Time Homebuyer Education and Counseling 

Economics 51 (2): 315–338.

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Bank of Philadelphia. https://www.philadelphiafed.

Debbie Gruenstein Bocian, Laura Peck, Sarah Ballinger,  org/-/media/community-development/homeownership-

Karen Cuenca, Louise Rothschild, and Stephen 

counseling-study/2014/homeownership-counseling-

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study-042014.pdf.

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Osterlind. 2001.  Using Multivariate Statistics, 6th ed. 

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Christina Stacy, Rachel Brash, Dina Emam, Rebecca 

Evans, Lisa. 2014. “Is There a Gender Gap in Confidence?”  Daniels, and Juan Collazos. 2015. “An Evaluation 

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Who Participates in Homebuyer Education and Counseling Services and Why? 

22

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Appendix: Complete Results

This appendix presents the complete results for the 

participation in remote services. Thereafter, Exhibit 

analyses. To begin, Exhibit A.1 reports the baseline 

A.4 shows which coefficients are statistically 

characteristics of the in-person and remote samples, 

significantly different between the two modes of 

Exhibit A.2 shows the coefficients for all the variables 

service. Relatively few factors differ between the two 

considered as predictors of participation in in-person 

service modes, and because it is no more than one 

services, and Exhibit A.3 reports the coefficients 

would expect by chance, we put relatively little weight 

for all the variables considered as predictors of 

into the specific differences.

Exhibit A.1: Baseline Characteristics of In-Person and Remote Samples Mean of Baseline 

Mean of Baseline 

Characteristic for  

Characteristic for  

In-Person Group

Remote Group

Demographic measures

Race or ethnicity

Hispanic

30.2

23.1*

Non-Hispanic White

33.3

39.9*

Black/African American

23.7

19.8*

Asian non-Hispanic

 9.9

12.7*

Other race

 2.9

 4.5*

Male

57.6

60.2

Age

Under 30

28.9

33.3*

30 to 45

43.9

44.7

46 or older

27.2

22.0*

Marital status

Married

38.0

37.6

Divorced, widowed, or separated

16.3

14.6

Single and never married

45.7

47.7

Household size

One

23.0

23.4

Two 

31.4

31.5

Three

19.4

20.4

Four

16.7

14.0*

Five

 6.9

 6.6

Six or more

 2.6

 3.9*

* Statistically significant at the p<0.05 level (t-test on the difference in means across the in-person group and remote group samples).

Notes: The in-person group sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. The remote group sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Given that the in-person group and remote groups each contain a selected sample of the choice group, we do not expect baseline characteristics to be balanced across these two samples. Study participants who withdrew from the study are excluded. Actual Ns for each study measure vary slightly from figures presented in the sample size row.

Sources: Data on baseline characteristics are from the baseline survey of study participants; credit bureau data Who Participates in Homebuyer Education and Counseling Services and Why? 

23

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.1: Baseline Characteristics of In-Person and Remote Samples Mean of Baseline 

Mean of Baseline 

Characteristic for  

Characteristic for  

In-Person Group

Remote Group

Demographic measures

Plans to have children in purchased home

40.0

38.1

Education

Bachelor’s degree or higher

50.9

55.4*

Associate’s degree 

14.3

12.4

Some college, but no degree 

18.4

15.8*

High school diploma or less 

16.4

16.3

As a student, I enjoyed going to school

39.3

35.3*

I usually spend a lot of time planning for large purchases

42.7

45.3

It is easy for me to stick to and accomplish my goals

40.0

37.4

I am pretty good at math

37.8

38.5

Housing arrangements

Satisfied with prepurchase housing arrangements

65.1

68.8*

Stage In the homebuying process

Not yet started, started but no visits, or visited  

53.6

46.5*

homes but did not make offers

Made an offer, signed a purchase agreement,  

46.4

53.5*

or purchased a home

Years planned to live in purchased home

Less than 6 years

16.8

19.4*

6 to 10 years

30.5

35.4*

11 years or more

52.7

45.2*

Measures of financial capability and knowledge

Uses a written budget

73.0

74.3

Usually pays credit card balance in full to  

78.2

77.8

avoid interest charges

Over the past year, was short on money  

17.5

15.1*

sometimes or often

Sets aside extra money for retirement, education,  

91.7

91.8

or to build a financial cushion sometimes or often

Study participant searched for information about  

61.9

66.9*

the mortgage loans available from multiple lenders

Number of correct answers (out of 4) to mortgage  

 2.6

 2.7*

literacy quiz

Respondent would rather receive 40 dollars now  

18.4

17.3

than 50 dollars a month from now

* Statistically significant at the p<0.05 level (t-test on the difference in means across the in-person group and remote group samples).

Notes: The in-person group sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. The remote group sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Given that the in-person group and remote groups each contain a selected sample of the choice group, we do not expect baseline characteristics to be balanced across these two samples. Study participants who withdrew from the study are excluded. Actual Ns for each study measure vary slightly from figures presented in the sample size row.

Sources: Data on baseline characteristics are from the baseline survey of study participants; credit bureau data Who Participates in Homebuyer Education and Counseling Services and Why? 

24

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.1: Baseline Characteristics of In-Person and Remote Samples Mean of Baseline 

Mean of Baseline 

Characteristic for  

Characteristic for  

In-Person Group

Remote Group

Measures of creditworthiness

Employment

Full-time (30+ hours per week)

88.0

90.9*

Part-time (1–29 hours per week) 

 4.6

 3.6

Not currently employed 

 7.4

 5.5*

Plans to purchase the home with a co-borrower

24.6

25.5

$24,999 or less 

 9.3

 7.9

$25,000 to $49,999 

38.8

33.0*

$50,000 to $74,999 

30.9

32.5

$75,000 to $99,000

12.8

15.8*

$100,000 or more

 8.4

10.8*

Credit score

Less than 620

13.1

 9.9*

620 to 659 

15.3

14.6

660 to 739 

36.0

37.9

740 or more

35.7

37.6

Had mortgage loan application denied by another lender

 6.0

 6.1

Previously lost a home or other property through 

 4.7

 3.9

foreclosure

Cash on hand for downpayment and closing costs  

29,514

33,116

(in thousands) 

Monthly payment nonhousing debt (in hundreds)

 332

 356

Given choice of in-person or remote services?

Choice treatment group indicator

36.1

33.9

Summary information

Sample size

807

2,526

* Statistically significant at the p<0.05 level (t-test on the difference in means across the in-person group and remote group samples).

Notes: The in-person group sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. The remote group sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Given that the in-person group and remote groups each contain a selected sample of the choice group, we do not expect baseline characteristics to be balanced across these two samples. Study participants who withdrew from the study are excluded. Actual Ns for each study measure vary slightly from figures presented in the sample size row.

Sources: Data on baseline characteristics are from the baseline survey of study participants; credit bureau data Who Participates in Homebuyer Education and Counseling Services and Why? 

25

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.2: Relationship Between Sample Traits and Participation in In-Person Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Demographic measures

Race/ethnicity (reference: non-Hispanic White)

Hispanic

– 8.2

– 5.5

– 2.6

– 1.6

Black/African American

6.6

11.0*

5.4

6.7

Other race

4.0

7.9

4.4

5.2

Male (reference: female)

– 12.0*

– 11.0*

– 10.8*

– 10.3*

Age (reference: under 30)

30 to 45

– 4.3

– 4.7

– 4.8

– 3.3

46 or older

5.1

2.3

2.6

2.1

Marital status (reference: single and  

never married)

Married

– 0.4

3.1

5.2

5.4

Divorced, widowed, or separated

– 4.3

– 4.2

2.0

– 0.2

Household size (reference: one)

Two 

– 1.2

– 2.2

– 6.6

– 5.9

Three or four

2.1

0.8

– 5.4

– 6.6

Five or more

– 0.2

– 3.4

– 10.4

– 10.7

Plans to have children in purchased home

– 2.7

– 7.0*

2.4

0.3

Education (reference: bachelor’s degree  

or higher)

Associate’s degree 

8.4

5.9

3.6

1.5

Some college, but no degree 

– 8.9*

– 10.1*

– 11.7*

– 11.1*

High school diploma or less 

– 6.2

– 5.1

– 4.2

– 4.3

Attitudes and beliefs (respondent strongly agreed with the statement) As a student, I enjoyed going to school

– 0.8

0.8

– 3.0

– 2.0

I usually spend a lot of time planning for  

2.1

1.2

3.2

3.0

large purchases

It is easy for me to stick to and accomplish  

– 2.0

– 0.7

0.2

1.3

my goals

I am pretty good at math

9.3*

7.9*

5.3

4.1

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

26

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.2: Relationship Between Sample Traits and Participation in In-Person Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Housing arrangements

Satisfied with prepurchase housing arrangements

– 2.3

– 2.8

– 3.1

– 1.9

Made an offer, signed a purchase agreement, or 

– 9.9*

– 10.0*

– 6.6*

– 7.6*

purchased a home (reference: early stage)

Years planned to live in purchased home 

(reference: less than 6 years)

6 to 10 years

1.6

1.1

1.5

1.7

11 years or more

1.8

0.2

0.9

0.4

Measures of financial capability and knowledge

Uses a written budget

– 0.3

– 1.0

2.4

1.3

Usually pays credit card balance in full  

– 0.3

– 1.6

1.9

0.4

to avoid interest charges

Over the past year, was short on money 

1.4

3.3

– 2.3

– 0.3

sometimes or often

Sets aside extra money for retirement,  

education, or to build a financial cushion 

– 5.8

– 3.7

– 1.4

– 0.8

sometimes or often

Study participant searched for information  

about the mortgage loans available from  

– 0.7

2.1

– 1.7

0.7

multiple lenders

Number of correct answers (out of 4)  

– 0.4

– 0.6

– 0.9

– 0.8

to mortgage literacy quiz

Respondent would rather receive 40 dollars  

– 5.1

– 2.5

– 5.2

– 3.7

now than 50 dollars a month from now

Measures of creditworthiness

Employment (reference: full-time employment  

[30+ hours per week])

Part-time (1–29 hours per week) 

– 4.5

0.6

5.0

7.5

Not currently employed 

7.0

2.6

11.2

7.1

Plans to purchase the home with a co-borrower

– 7.8*

– 6.3*

– 5.4

– 4.3

Income received by participant and any  

co-borrowers in past 12 months (reference: 

$75,000 or more)

$24,999 or less 

1.5

– 0.2

2.2

0.7

$25,000 to $49,999 

– 0.8

– 0.9

4.1

3.7

$50,000 to $74,999 

6.0

6.1

1.3

2.8

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

27

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.2: Relationship Between Sample Traits and Participation in In-Person Services Completed 

Completed  

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Measures of creditworthiness

Credit score (reference category: 740 or more)

Less than 620

0.0

– 2.3

– 3.3

– 3.7

620 to 679 

3.6

7.0

– 1.1

– 1.0

680 to 739 

– 3.1

– 1.9

– 3.8

– 4.0

Had mortgage loan application denied  

1.1

– 2.1

2.9

1.8

by another lender

Previously lost a home or other property  

2.6

0.3

– 4.0

– 4.2

through foreclosure

Cash on hand for downpayment and closing 

0.0

0.0

0.0

0.0

costs (in thousands) 

Monthly payment nonhousing debt (in hundreds)

– 1.0*

– 1.3*

– 0.1

– 0.4

Given choice of in-person or remote services?

Choice treatment group indicator

3.8

0.4

– 1.2

– 0.9

Summary information

Mean of participation indicator

28.1%

24.4%

16.7%

14.6%

Sample size

807

807

807

807

R-squared

0.166

0.187

0.144

0.155

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to in-person services, including both members of the in-person treatment group and those members of the choice group who stated a baseline preference for in-person services. Study participants who withdrew from the study are excluded. All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants and credit bureau data

Exhibit A.3: Relationship Between Sample Traits and Participation in Remote Services Completed 

Completed 

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Demographic Measures

Race or ethnicity  

(reference: non-Hispanic White)

Hispanic

– 2.6

– 5.0

– 8.2*

– 5.0

Black/African American

6.7

– 1.1

5.0

0.8

Other race

0.0

– 3.1

– 5.2*

– 3.6

Male (reference: female)

– 5.1*

– 6.6*

– 5.0*

– 6.0*

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

28

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.3: Relationship Between Sample Traits and Participation in Remote Services Completed 

Completed 

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Demographic Measures

Age (reference: under 30)

30 to 45

0.9

– 0.3

4.8*

1.9

46 or older

1.6

1.4

0.7

0.9

Marital status (reference: single  

and never married)

Married

– 3.7

0.2

0.4

1.2

Divorced, widowed, or separated

-0.8

2.0

3.9

2.1

Household size (reference: one)

Two 

2.9

2.4

0.1

2.8

Three or four

5.5

1.7

4.7

0.8

Five or more

– 5.1

– 3.7

– 4.0

– 4.7

Plans to have children in purchased home

– 3.1

– 0.5

– 4.9

– 0.1

Education (reference: bachelor’s degree  

or higher)

Associate’s degree 

– 6.3

– 3.5

– 3.0

– 3.5

Some college, but no degree 

– 4.6

– 8.7*

– 4.1

– 7.3*

High school diploma or less 

– 16.5*

– 15.0*

– 11.0*

– 14.1*

Attitudes and Beliefs (respondent strongly agreed with the statement) As a student, I enjoyed going to school

0.8

– 1.9

– 0.6

– 1.9

I usually spend a lot of time planning  

0.7

1.3

5.2*

2.6

for large purchases

It is easy for me to stick to and accomplish  

0.2

3.8

2.3

4.1

my goals

I am pretty good at math

2.8

1.8

2.9

2.4

Housing Arrangements

Satisfied with prepurchase housing arrangements

– 5.3*

– 0.6

– 2.0

– 0.5

Made an offer, signed a purchase agreement,  

– 1.3

– 3.5

– 2.2

– 3.8

or purchased a home (reference: early stage)

Years planned to live in purchased home  

(reference: less than 6 years)

6 to 10 years

5.8*

8.2*

7.0*

6.3*

11 years or more

3.1

7.7*

6.0*

6.6*

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

29

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.3: Relationship Between Sample Traits and Participation in Remote Services Completed 

Completed 

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Measures of Financial Capability and Knowledge

Uses a written budget

– 0.8

4.8*

0.5

2.9

Usually pays credit card balance in full to  

– 2.3

0.0

0.5

0.7

avoid interest charges

Over the past year, was short on money  

2.3

– 2.6

0.0

0.0

sometimes or often

Sets aside extra money for retirement,  

education, or to build a financial cushion 

– 2.9

– 1.7

– 5.1

– 2.3

sometimes or often

Study participant searched for information  

about the mortgage loans available from  

4.7

3.4

3.3

3.8

multiple lenders

Number of correct answers (out of 4)  

2.2*

1.8*

2.3*

1.9*

to mortgage literacy quiz

Respondent would rather receive 40 dollars now  

– 1.3

– 2.1

– 0.8

– 1.7

than 50 dollars a month from now

Measures of Creditworthiness

Employment (reference: full-time employment  

(30+ hours per week)

Part-time (1–29 hours per week) 

– 4.0

– 8.3

– 5.0

– 4.6

Not currently employed 

0.3

– 2.3

3.9

– 0.4

Plans to purchase the home with a co-borrower

0.0

– 0.5

– 1.6

– 1.9

Income received by participant and any  

co-borrowers in past 12 months (reference: 

$75,000 or more)

$24,999 or less 

3.9

5.2

5.9

5.1

$25,000 to $49,999 

1.1

0.2

– 0.3

– 0.7

$50,000 to $74,999 

0.9

1.2

0.7

0.3

Credit score (reference category: 740 or more)

Less than 620

– 5.8

– 1.4

– 4.2

– 2.6

620 to 679 

– 9.2*

– 4.0

– 6.5*

– 3.2

680 to 739 

– 9.3*

– 5.7*

– 6.0*

– 4.7*

Had mortgage loan application denied  

– 8.1*

– 4.4

– 8.2

– 4.6

by another lender

Previously lost a home or other  

2.5

3.3

1.9

3.1

property through foreclosure

Cash on hand for downpayment and  

0.0

0.0

0.0

0.0

closing costs (in thousands) 

Monthly payment nonhousing debt (in hundreds)

– 0.4

– 0.2

– 0.3

– 0.2

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

30

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.3: Relationship Between Sample Traits and Participation in Remote Services Completed 

Completed 

Initiated Any 

Completed  

Education 

One-on-One 

Services

All Services

Curriculum

Counseling

Given Choice of In-Person or Remote Services?

Choice treatment group indicator

0.0

2.4

– 0.4

2.8*

Summary Information

Mean of participation indicator

63.6%

32.5%

43.4%

28.4%

Sample size

2,526

2,526

2,526

2,526

R-squared

0.068

0.063

0.060

0.063

* Statistically significant at the p<0.05 level.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Exhibit A.4: Statistically Significant Differences Between In-Person and Remote Service Participation Coefficients Completed 

Completed 

Initiated Any 

Completed All 

Education 

One-on-One 

Services

Services

Curriculum

Counseling

Demographic measures

Race or ethnicity  

(reference: non-Hispanic White)

Hispanic

Black/African American

#

Other race

Male (reference: female)

Age (reference: under 30)

30 to 45

#

46 or older

Marital status (reference: single  

and never married)

Married

Divorced, widowed, or separated

Household size (reference: one)

Two 

#

Three or four

Five or more

# indicates that the difference between the coefficient reported in Exhibit A.2 for the in-person group is statistically different at the 0.05 

percent level from the corresponding coefficient reported in Exhibit A.3 for the remote group. See Equation (4) in Paternoster et al. (1998) for the formula used to compute the z-score associated with this test.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

31

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.4: Statistically Significant Differences Between In-Person and Remote Service Participation Coefficients Completed 

Completed 

Initiated Any 

Completed All 

Education 

One-on-One 

Services

Services

Curriculum

Counseling

Demographic measures

Plans to have children in purchased home

Education (reference: bachelor’s degree  

or higher)

Associate’s degree 

#

Some college, but no degree

High school diploma or less 

#

Attitudes and beliefs (respondent strongly agreed with the statement) As a student, I enjoyed going to school

I usually spend a lot of time planning  

for large purchases

It is easy for me to stick to and  

accomplish my goals

I am pretty good at math

Housing arrangements

Satisfied with prepurchase housing arrangements

Made an offer, signed a purchase agreement, or 

purchased a home (reference: early stage)

Years planned to live in purchased home 

(reference: less than 6 years)

6 to 10 years

11 years or more

Measures of financial capability and knowledge

Uses a written budget

Usually pays credit card balance in full  

to avoid interest charges

During past year, was short on money  

sometimes or often

Sets aside extra money for retirement,  

education, or to build a financial cushion 

sometimes or often

Study participant searched for information  

about the mortgage loans available from  

multiple lenders

Number of correct answers (out of 4)  

to mortgage literacy quiz

Respondent would rather receive 40 dollars now 

than 50 dollars a month from now

# indicates that the difference between the coefficient reported in Exhibit A.2 for the in-person group is statistically different at the 0.05 

percent level from the corresponding coefficient reported in Exhibit A.3 for the remote group. See Equation (4) in Paternoster et al. (1998) for the formula used to compute the z-score associated with this test.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

32

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

Exhibit A.4: Statistically Significant Differences Between In-Person and Remote Service Participation Coefficients Completed 

Completed 

Initiated Any 

Completed All 

Education 

One-on-One 

Services

Services

Curriculum

Counseling

Measures of creditworthiness

Employment (reference: full-time employment)  

(30+ hours per week)

Part-time (1–29 hours per week)

Not currently employed

Plans to purchase the home with a co-borrower

#

Income received by participant and any  

co-borrowers in past 12 months (reference: 

$75,000 or more)

$24,999 or less

$25,000 to $49,999

$50,000 to $74,999

Credit score (reference category: 740 or more)

Less than 620

620 to 679 

#

680 to 739

Had mortgage loan application  

denied by another lender

Previously lost a home or other  

property through foreclosure

Cash on hand for downpayment  

#

and closing costs (in thousands) 

Monthly payment nonhousing debt (in hundreds)

#

Given choice of in-person or remote services?

Choice treatment group indicator

# indicates that the difference between the coefficient reported in Exhibit A.2 for the in-person group is statistically different at the 0.05 

percent level from the corresponding coefficient reported in Exhibit A.3 for the remote group. See Equation (4) in Paternoster et al. (1998) for the formula used to compute the z-score associated with this test.

Notes: The sample includes all participants who were referred to remote services, including both members of the remote treatment group and those members of the choice group who stated a baseline preference for remote services. Study participants who withdrew from the study are excluded. 

All regressions include a set of site fixed effects. Standard errors are clustered at the site level. Missing values for baseline characteristic data are coded as the reference category for binary or categorical measures and are coded as the sample mean for continuous measures.

Sources: Takeup data are from eHome America, ClearPoint, and local housing counseling agencies; data on baseline characteristics are from the baseline survey of study participants, and credit bureau data

Who Participates in Homebuyer Education and Counseling Services and Why? 

33

Insights from HUD’s First-Time Homebuyer Education and Counseling Demonstration

U.S. Department of Housing and Urban Development

Office of Policy Development and Research

Washington, DC 20410-6000

October 2018

Document Outline

Who Participates in Homebuyer Education and Counseling Services and Why?

Who Participates in Homebuyer Education and Counseling Services and Why?

Acknowledgments

Disclaimer

Contents

Exhibits

Abstract

Introduction and Background

What Is Homebuyer Education and Counseling?

In-Person Services

Remote Services

Study Sample

Prior Research on Participation and the Contribution of This Report

A Theory and Hypotheses About the Participation Decision

A Theory of Service Participation

Hypotheses About the Participation Decision

Methodology

Evaluation Design

Analytic Sample

Data and Measures

Analytic Approach

Findings

Reasons for Participating or Not Participating in Services

Survey Respondents’ Reasons for Not Completing Services

Focus Group Participants’ Reasons for Not Participating in Services

Focus Group Participants’ Reasons for Participating in Services

Predictors of Participation in In-Person Services

Predictors of Participation in Remote Services

Discussion and Conclusion

References

Appendix: Complete Results