Section 8 Homeownership Program
Section 8 Voucher holders who are participating in or who are graduates of the Family Self-Sufficiency (FSS) Program may be eligible to use their Housing Assistance Payment to help pay a home mortgage rather than for rent. Seniors and persons with disabilities who have Vouchers, but are not participating in FSS, may also be eligible.
The Section 8 Homeownership Program is designed to allow for standard selling and lending practices while giving flexibility to the low income home buyer who, with the help of their Housing Assistance Payment, can pay the mortgage but does not meet the typical income or down payment requirements.
The Housing Authority works with reputable homeownership counseling programs and mortgage lenders to ensure successful and appropriate use of the mortgage assistance by qualifying low income families.
To be considered for the homeownership program, families:
- Must have at least one adult member continuously employed full time (average 30 hours per week) for at least 1 year. Seniors and disabled families are exempt from this requirement.
- Must have a minimum gross income equal to the HUD-established Very Low Income level.
- Must successfully complete a homeownership counseling program.
- Must be a first time homeowner, meaning no member of the household has had an ownership interest in any residence during the 3 years preceding the start of homeownership assistance. Certain families are exempt from this requirement, including disabled families.
Buyers on the program are not restricted to the traditional stock of affordable homes, such as poorly built "fixer-uppers." The only requirements are that the home must:
- Be a one-unit property or a single dwelling unit in a cooperative or condominium project;
- Be existing or under construction at the time the family is determined eligible for the program; and
- Meet HUD-established Housing Quality Standards.
The family is responsible for securing financing for their home purchase and the Housing Authority must approve the proposed financing.
The Housing Authority requires that a minimum cash down payment of 3% of the purchase price be paid by the family, a third of which must come directly from the family's own resources. Additional financial resources from the community may be available to assist with the down payment.
The amount of assistance provided for the family will be determined with consideration of the current Voucher Payment Standards and the monthly homeownership expenses. The Housing Authority has the discretion to pay the assistance to either the family or the owner/lender directly.
The maximum term of assistance is 15 years if the initial mortgage term is 20 years or longer, or 10 years in all other cases. However, no maximum term is applied to senior or disabled households.
Tenants interested in the Section 8 Homeownership Program should contact the Community Services unit of the Housing Authority for more information. The Community Services phone number is (408) 993-4200.