Julia Anderson
Here’s what it takes to be eligible for the Housing Choice Voucher homeownership program.
Many low-income households feel stuck in a rut. They’d love to stop renting so they could move away from their landlords and stop wasting cash, but they lack the savings and monthly income for the down payment and mortgage on a home.
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Thanks to the Housing Choice Voucher homeownership program, you can overcome these obstacles to buy your first home instead of continuing to rent. But to get a voucher that helps you become a homeowner, you must meet some eligibility requirements.
Section 8 Homeownership Program’s Eligibility Requirements
If you wanted to get a Section 8 voucher to help pay your rent, you’d need to make less than a certain income to qualify. Using a voucher to buy a home takes the opposite to qualify. In other words, you’ll need to make a minimum income to be eligible for the Housing Choice Voucher homeownership program, as that will ensure that you can pay your monthly mortgage without issue.
Is making a certain income the only requirement for getting a Section 8 voucher to buy a house? No, as you’ll also need to show full-time employment (30 hours weekly) for one year if you’re not elderly or disabled. You’ll also have to be a first-time homeowner, which means you cannot have an ownership interest in a house for the past three years. If someone in your household is disabled, you can bypass this requirement.
Beyond those prerequisites, you will need to meet requirements put forth by your Public Housing Agency (PHA). They will handle the application process, so contact them now to get the ball rolling whether you’re looking to buy a home with a voucher or rent. Lastly, you will need to take counseling classes on homeownership and have a three percent down payment for the home. One percent of the down payment must come from your savings, while the rest can come from other sources, such as government benefit programs.
If you pass those requirements and get a voucher, you will have to spend around 30 percent of your income on housing expenses each month, which is the same as if you were renting with Section 8. Why buy a home with this program? Because it lets you build equity so you can gain financial stability, unlike renting.
Why Buying A Home With Your Voucher Makes Sense
As stated, buying a house with your Section 8 voucher builds equity that can propel your financial future. There are other benefits to buying versus renting, though. Many say that there’s less discrimination when buying a home with a voucher, as many landlords have negative preconceptions of Section 8 renters. You can also enjoy a better selection in an ideal neighborhood if you’re buying.
Need more reasons to sign up for the Section 8 homeownership program? It can help you get a lower interest rate, assist with your down payment and closing costs, and pay a portion of your mortgage so you can achieve your dream of owning a home without breaking the bank.
