Section 8 Housing Choice Voucher-Homeownership Option

Families who have been determined eligible for Section 8 Housing Choice Voucher (HCV) assistance have the option, if they meet certain additional criteria, to purchase a home and receive payment assistance towards their mortgage, rather than continue to lease. This option is primarily designed for working families, however elderly and disabled persons and families also qualify. Current participants include single and two-parent families, grandparents and single individuals with stable monthly income that meets the minimum requirements for participation from sources such as wages from full-time employment, Social Security or other pension benefits.

Participating families are responsible for finding a home that meets eligibility requirements and that will pass a Housing Quality Standards (HQS) inspection preformed by the authority in order to be considered for assistance under the program. The type of home a family may purchase utilizing Section 8 Voucher assistance includes single-family, co-operative, condominium or manufactured homes

Requirements for Participation

  • Individuals must have been a HCV (Section 8) rental program participant for a minimum of 12 months to be eligible for the homeownership option
  • Individuals must meet a minimum down payment requirement of 3% of the purchase price of the home with at least 1% coming from their own personal resources (2% can come from down payment assistance programs or another qualifying source).
  • Individuals must not have ever defaulted on a mortgage as a past participant of the HCV (Section 8) home ownership option.
  • Individuals must meet first time home buyer requirements defined by HUD as: No family member is permitted to have held an ownership interest in a residence for the 3 years prior to the home purchase, unless they are a single parent or displaced homemaker who, while married, owned a home jointly with their spouse or resided in a home owned solely by their spouse. The first time home buyer requirements are waived for families with any member age 62 and retired or disabled, as long as they have no current ownership interest in any real estate property.
  • Individuals must meet minimum and maximum income requirements to be considered income qualified. Maximum income guidelines are based on family size; minimum income guidelines are equal to 2,000 hours of annual full-time work at the prevailing Federal minimum wage for a minimum of 12 months. Income limits do not apply to retired individuals 62 and older or those individuals on disability.
  • Individuals must attend and complete all required pre-assistance home ownership counseling and homebuyer education identified by HHA.
  • Individuals must not owe any past debt to HHA.
  • Individuals must meet any additional requirements established by HHA for participation in the program.

Terms of Eligibility

  • Payment assistance may continue for a maximum term of 15 years for mortgage financing with a term of 20 years or longer as long as the participant continues to meet all HCV (Section 8) program guidelines.
  • Payment assistance may continue for a maximum term of 10 years for mortgage financing with a term of less than 20 years as long as the participant continues to meet all HCV (Section 8) program guidelines.
  • If a participant is considered elderly (62 or older) or disabled (receiving disability income), the assistance will continue for the life of the mortgage, as long as they remain income eligible by the HCV (Section 8) guidelines.

Links

For additional information, visit the HUD web site here.
Or copy and paste this link into your web browser:
http://www.hud.gov/offices/pih/programs/hcv/homeownership

To view the HUD PowerPoint presentation, click here.
Or copy and paste this link into your web browser:
http://www.hud.gov/offices/pih/programs/hcv/homeownership/msdhomeownership3-20-03.ppt