Things They Don’t Tell You: Your Section 8 Voucher May Help You Buy a Home

Most people know the Section 8 Housing Choice Voucher Program as a program that helps families pay rent. But here’s something that doesn’t get talked about nearly enough:

In some areas, eligible Section 8 voucher holders can use their housing assistance toward HOMEOWNERSHIP instead of continuing to use it only for rent. 🏠🔑

Yes, this is a real federal HUD program.

It’s called the Housing Choice Voucher Homeownership Program, and it allows participating local housing authorities to help eligible voucher holders use their housing assistance toward qualifying monthly homeownership expenses.

And depending on your circumstances, that assistance can potentially continue for up to 15 years.

Now THAT is something worth knowing about.

First, Section 8 Is Not Buying the House for You

Let’s clear this part up immediately because I don’t want this information getting twisted.

The program does not mean HUD hands you a free house or automatically pays your entire mortgage.

Instead, if you qualify through a participating Public Housing Agency, your Housing Choice Voucher assistance can be used toward eligible monthly homeownership expenses.

You will still be responsible for your required portion of the expenses.

The major difference is that instead of the housing assistance being used only toward renting someone else’s property, qualifying participants may be able to use that assistance while owning their home.

According to HUD, the Housing Choice Voucher Homeownership Program allows families assisted under the Housing Choice Voucher program to purchase a home and receive monthly assistance with homeownership expenses.

Yes, Assistance Can Last Up to 15 Years

Here’s where it gets interesting.

For families that are not elderly or disabled, HUD generally limits homeownership voucher assistance to:

15 years when the initial mortgage term is 20 years or longer.

10 years when the initial mortgage term is less than 20 years.

Certain qualifying elderly or disabled families are not subject to those same time limitations under HUD’s rules.

So when you hear that Section 8 can help with homeownership expenses for up to 15 years, there is truth to it — but there are requirements attached.

A more accurate way to put it is:

Eligible Housing Choice Voucher participants may receive monthly homeownership assistance for up to 15 years when they meet the program requirements and have a qualifying mortgage.

This Program Is Not Limited to One Particular State

This is a federal HUD program, which means it is not limited to residents of one particular state.

Housing Choice Voucher holders in different states may potentially have access to the Homeownership Program.

However, there is one VERY important thing you need to know:

Not every local housing authority offers it.

HUD allows individual Public Housing Agencies to decide whether they will operate the homeownership option.

So don’t assume the program isn’t available where you live — and don’t assume that it is.

CALL AND ASK.

Two people living in different cities — or even different areas of the same state — could receive different answers because their vouchers are administered by different housing authorities.

Here’s Exactly Who You Need to Call

If you currently receive Section 8, contact the Public Housing Agency (PHA) or housing authority that handles your Housing Choice Voucher.

That’s usually the agency you deal with for your voucher paperwork, annual recertification and other Section 8 matters.

When you call, ask:

“Does your housing authority participate in HUD’s Housing Choice Voucher Homeownership Program?”

If they say YES, your next question should be:

“What do I need to do to qualify for the homeownership program?”

Let them explain the requirements and application process for your particular housing authority.

Having Section 8 Doesn’t Automatically Qualify You

This isn’t an automatic switch from renting to owning.

HUD has eligibility requirements, and participating housing authorities administer the program locally.

Requirements can involve things such as:

First-time homeownership eligibility
Minimum household income
Employment requirements for certain households
Required homeownership counseling
An eligible property
Acceptable financing

There are different rules and exceptions that can apply to certain elderly or disabled households.

Your local housing authority may also have additional policies and procedures.

That’s why you want the information directly from the housing authority managing your voucher.

Homebuyer Counseling Is Part of the Process

Before purchasing through the program, participants generally have to complete required homeownership counseling.

This helps prepare you for the financial responsibilities that come with owning a home, including mortgages, budgeting, maintenance, financing and other homeownership expenses.

Because once that house belongs to YOU, when something breaks, you can’t call the leasing office talking about, “Can y’all send maintenance?” 😂

That’s your house now!

Don’t Start House Shopping Just Yet

I know somebody already picked out the kitchen, backyard and where the new sectional is going. 😂

Hold on.

Call your housing authority FIRST.

Before contacting real estate agents or applying for a mortgage, find out:

Does your housing authority offer the program?

Do you meet its eligibility requirements?

What counseling must you complete?

What financing requirements apply?

What types of properties qualify?

What steps have to be completed before you purchase?

Get the information first. THEN start making moves.

What If Your Housing Authority Doesn’t Offer It?

Don’t panic.

Because participation is optional, some Public Housing Agencies simply don’t operate the homeownership option.

If yours doesn’t, ask whether they plan to offer it in the future.

You can also ask whether they can refer you to:

Other homeownership programs in your area
First-time homebuyer assistance
Down-payment assistance programs
HUD-approved housing counseling agencies

There may be other resources available even if your particular housing authority doesn’t participate in this program.

Save These Questions Before You Call

Ask your housing authority:

Do you participate in HUD’s Housing Choice Voucher Homeownership Program?

What are your eligibility requirements?

Are there minimum income or employment requirements?

Do I have to participate in the voucher program for a certain amount of time before applying?

What homebuyer counseling is required?

How do I apply?

What types of mortgage financing are allowed?

What types of homes qualify?

How will my housing assistance be calculated after I purchase my home?

And write down the name of the person you spoke with, the date and what you were told.

Things They Don’t Tell You

Somebody can receive a Housing Choice Voucher for years and never know that there is a federal program that may provide a pathway from renting with housing assistance to owning a home with housing assistance.

Everyone won’t qualify.

Every housing authority doesn’t participate.

But this program isn’t limited to one particular state, so don’t count yourself out based on where you live.

If you currently receive a Housing Choice Voucher, contact the housing authority that manages your voucher and ask about the:

Housing Choice Voucher Homeownership Program.

You may discover a homeownership opportunity you didn’t even know was available.

And THAT is definitely one of those Things They Don’t Tell You. 🏠🔑