A newer Section 8 housing program began in the late 90s and became widespread recently: The option to use a Section 8 Housing Choice Voucher to help families that are first-time home buyers make mortgage payments.
Not all local Public Housing Authorities allow their Section 8 voucher programs to be used for home ownership, so make sure to visit other sites if you wish to receive financial assistance for mortgages.
However, in certain circumstances, such as reasonable accomodation for the elderly or for people with disabilities, the PHA must make exceptions. As well, some local Public Housing Authorities will apply additional conditions to using Section 8 Vouchers for homeownership on top of the standard federal guidelines. Again, make sure you visit other resources to be completley informed of the options available to you.
Federal guidelines for using Section 8 Vouchers for homeownership are more strict than those for using Section 8 Vouchers to rent.
The Public Housing Authority arranges for 2 separate inspections to determine the quality of the home.One inspection is done by a Public Housing Authority selected inspector, and the other is done by a family-selected inspector. The Section 8 recipient family can select the inspector to ensure there is no bias or connection to the PHA, making for an accurate assessment.
Section 8 Homeownership Vouchers also have income and employment requirements.
1. At least one adult in the household must be and have been employed for at least one year in full-time employment
2. The annual income of the family must be greater than 2000 multiplied by the federal minimum wage.
3. An important elements is that the family must attend homeownership and housing conseling programs through their local Public Housing Authority.
4. Subsidies for homeownership are limited to 15 years on 20+ year mortgages, and 10 years on mortgage less than 20 years.
Like in all Section 8 housing programs, the requirements for homeownership vouchers are different for the disabled and elderly, and are generally more flexible, particularly if homeownership is a necessary accommodation for a disability.