The basic premise of the Housing Choice Voucher Homeownership Program is to use the voucher subsidy to help with mortgage expenses.
Who Qualifies?
In order to be eligible a family must meet the following criteria:
- The family must be a current voucher program participant or eligible for admission to the housing choice voucher program.
- The family must qualify as a first-time homeowner and have no ownership interest in a residential property.
- The annual income of the adult family members who will own the home must be equal to or greater than the Federal minimum hourly wage multiplied by 2000. In the case of a disabled family the monthly federal SSI income multiplied by 12.
- Welfare assistance may not be counted in the minimum income requirement, except in the case of elderly or disabled families.
- Except for elderly or disabled families, one or more adult members of the family who will own the home are currently employed on a full-time basis (not less than an average of 30 hours per week), and have been continuously employed for at least 1 year. NHA has discretion to determine if employment interruption, successive employment, or self-employment satisfies the employment requirement.
Pre-Assistance Counseling
Eligible families wishing to participate in this program must attend and satisfactorily complete a pre-assistance homeownership-counseling program provided by NHA or a designated program in the NHA service area.
Finding a Home
NHA will have two options available for families wishing to find a Home.
Matching eligible Section 8 families with local developers for new construction or the Family can assume the responsibility of locating a home. The family will have a 120-day time limit to locate a home to purchase, and a 90-day time limit to secure the necessary financing and purchase.
If the family does not meet the time limits, their homeownership voucher will convert to a rental voucher.
Inspections
When a home is found there must be two inspections:
NHA will be responsible for conducting an initial HQS inspection.
The family will be responsible for selecting and hiring an independent licensed inspector.
The Texas Real Estate Commissioner must license independent inspectors. The purpose of the licensed professional inspection is to identify potential problems. This inspection is designed to ensure that the condition and life expectancy of major systems and appliances in the home are known prior to purchase.
Financing
It is anticipated that mortgage lenders will consider the voucher assistance when underwriting the loan and the underwriting standards of the individual lender and/or financing program will apply. NHA will develop partnerships with lenders to assist the family in obtaining financing, but may not require the use of certain lenders. The participating family will ultimately make the choice of the lender.
Homeownership Assistance Payments
NHA may make the monthly homeownership housing assistance payment directly to the lender on behalf of the family or to the family.
Family Share
The homeowner is responsible for all homeowner expenses not covered by the HAP payment. For instance, if the monthly homeownership expenses exceed the payment standard, the family is responsible for paying the difference in addition to the required family share.
Continued Assistance
In order to receive continued HAP homeownership payments, the family must continue to live in the home. The family must comply with the terms of the mortgage in order to qualify for continued assistance from NHA.
Time Limits
Except for elderly and disabled families, Section 8 homeownership assistance may only be paid for a period of 10 to 15 years. There is no time limit on homeownership assistance for elderly and disabled families.
Termination of Assistance
Reasons that NHA may deny or terminate homeownership assistance:
The family does not comply with voucher program requirements at 24CFR 982.552 or for criminal activity as defined by 24CFR 982.553
The family does not comply with family obligations described at 24CFR 982.551 or 24CFR 982.633.
The NHA must terminate voucher homeownership assistance for the family if the family is disposed from the home pursuant to a judgment or order of foreclosure on any mortgage-securing debt incurred to purchase the home.