Section 8 voucher program is known for providing rental assistance to US citizens. The federal government pays a part of the rental charge of tenants from low-income families. However, it is to be noted that as a voucher holder, you can take advantage of the Section 8 homeownership program. In this case, the federal authority will pay a part of your monthly mortgage payout. But, not every public housing agency will provide you with a homeownership voucher option.
The program is intended to help voucher owners and their families to retain their homes. The program has been launched basically to help working families. Nevertheless, disabled persons and the elderly are eligible for this program. In addition, grandparents, single individuals, and single and 2-parent families are qualified for the Section 8 Homeownership Program.
You need to have stable monthly earnings to participate in this program. Those who earn Social Security benefits or pension can also apply for it. The minimum yearly income needed for eligibility depends on where you reside.
Other details about eligibility criteria
- HUD has already set some basic rules for the program. But, PHAs also have implemented their own rules.
- You are currently a participant of the Section 8 housing voucher program
- Your annual income is at least $14,500.
- You must be a first-time property buyer. As per HUD's definition, you have not bought a home in the last 3 years.
- Your weekly work hours are at least 30 hours.
- You have taken part in homebuyer counseling and education
- There are no previous records of defaults on loans. It may prevent you from receiving homeownership assistance.
- Meet the requirements regarding your savings balance and minimum credit score.
Although you have fulfilled eligibility criteria, you may not always be successful in locating and buying a house. You should have realistic anticipations and get prepared to accept this fact. In most cases, down payments and credit scores are common barriers. So, start taking steps to avoid these problems.
If you get qualified for the Homeownership program under Section 8, it will provide you with several advantages. The most important thing is that it brings stability to your family. The amount invested for the monthly cost will help with the development of equity. Thus, from a financial perspective, it is helpful to applicants. Buying a home with a voucher is more affordable than renting a house.
But, there are a few demerits to the problem. In most cases, financial assistance is available only for up to 15 years. With the expiry of the voucher, you are bound to pay the monthly amount fully.
However, there are some ways to make the payout more affordable. You can refinance to a different mortgage to reduce your monthly payment. To ensure success in this program, you have to do research and get prepared. Grants and other types of financial assistance can solve the problem.
So, these are some basic details of the Homeownership Voucher program. As a Section 8 voucher owner, you can apply for this program.