Section 8 Housing Choice Voucher Homeownership Program
Below is general information about the federal program that allows the Housing Assistance Payment to be used for a mortgage payment instead of rental assistance.
Eligibility Requirements :
On Section 8 at least one year; with no debts owed to Marin Housing (or other Housing Authority)
Head of Household or Responsible Adult must be employed for minimum of one year at 30 hrs/week (unless Elderly/Disabled)
Minimum Income Requirements: (does not apply to Elderly/Disabled)
Gross annual income must be 2 times the payment standard for the size voucher held- this is minimum, but may NOT be adequate to qualify for a loan (for example: if hold 2 Bedroom voucher; income must be $3,120/ month or $37,440 per year)-income requirement. may be waived if adequate down payment
Welfare assistance is not accepted as income, but would be used in calculating rent
Must have at least enough for DOWN PAYMENT and CLOSING costs (approximately 6% of purchase price- 20% more realistic)
Special Exceptions for Elderly/Disabled Households
No time limits of assistance – will continue forever if eligibility continues
Welfare assistance allowed as income; Amount received from SSI is minimum income requirement
No minimum work requirements
Elderly/Disabled applicants still need to secure their own financing and to have adequate funds for down payment and closing costs
This most realistically works for households who receive inheritances, special needs trusts, a large lump sum for down payment
Aspects to consider:
Household must qualify and secure their own financing from a bank (MHA will refer you to a lender familiar with the program)
Must secure a 30 year FIXED Rate loan – no Adjustable Rate Mortgages
Household would need to find a unit that they could afford (a below market rate unit)
The assistance from the Housing Authority lasts for a maximum of 15 years (except elderly /disabled)
Program is essentially established for communities where housing is more affordable – in the $100k range- very difficult in Marin and Bay Area
How it actually works – THE FORMULA:
Total housing costs (mortgage, prop. taxes, homeownership dues, insurance) should equal payment standard for voucher size held (if 2 Bedroom: $1560)
If housing costs exceed payment standard, Marin Housing will allow household to pay maximum of 40% of monthly adjusted gross income out of pocket
For more information contact:
Gayle Suits
Family Self Sufficiency Program Coordinator/Section 8 Homeownership Program
(415) 491-2581 gsuits@marinhousing.org
