I wish to purchase my first home but need help meeting the monthly mortgage and
other homeownership expenses, is there a program that will help me?
it is called the Homeownership Voucher Program.
I talk to to obtain additional information about this program?
call your local Public Housing Agency (PHA). For a list of PHA's see PHA
Do all PHA's participate in this program?
No. For a list
of participating PHAs that have reported one or more homeownership voucher
home purchases to HUD see this
indicates the number of homeownership voucher purchases assisted by each PHA.)
I am currently a participant in the Housing Choice Voucher program and receive
rental assistance can I use my voucher to buy a home and receive monthly assistance
in meeting homeownership expenses?
Yes, if your local PHA participates
in the homeownership voucher program, and you meet income and other eligibility
If I don't have a rental voucher what
do I do?
You have to apply for a housing choice voucher at the local PHA.
What if the waiting list at the housing agency in my area
is closed and the PHA is not accepting applications?
You can either wait
until the waiting list opens up again, or you can apply in another jurisdiction
where the waiting list is open. However, many PHA's give a preference to residents
of the community over non-residents, and you may be required to reside in the
jurisdiction of that PHA for at least one year. You should ask the PHA in the
area where you are applying about their residency preferences.
I get on a waiting list, how long do I have to wait?
The waiting time
varies from PHA to PHA. You need to contact the PHA for an estimated wait time.
Generally, waiting times can vary between several months and several years.
If I am in Public Housing (but do not receive a voucher),
what do I have to do to get into the homeownership voucher program?
have to apply for a housing choice voucher (the same as anyone else who does not
have a voucher) and meet the eligibility requirements at the local PHA where you
If I get on a waiting list for a voucher,
is there any special preference for me because I want to purchase a home?
No. There is no preference based on the fact that you desire to use your voucher
Are there any standards for the home
to be purchased under this program?Are
PHAs required to offer homeownership vouchers?
The home must pass an initial housing
quality standards inspection conducted by the PHA and an independent home inspection
before the PHA may approve the purchase by the family.
PHAs may choose to administer
a homeownership program, but are not required to do so. The PHA may impose limits
on the size of this program, or limit use of the option to certain purposes. However,
PHAs must provide homeownership assistance when required as a reasonable accommodation
to a family with a disabled person.
What families are eligible
to apply for homeownership vouchers?
Families must meet these requirements:
- First-time homeowner or cooperative member.
- No family
member has owned or had ownership interest in their residence for at least three
- Except for cooperative members, no member of the family has
any ownership interest in any residential property.
- Minimum income
requirement. Except in the case of disabled families, the qualified annual income
of the adult family members who will own the home must not be less than the Federal
minimum hourly wage multiplied by 2,000 hours. For disabled families, the qualified
annual income of the adult family members who will own the home must not be less
than the monthly Federal Supplemental Security Income (SSI) benefit for an individual
living alone multiplied by 12. The PHA may also establish a higher minimum income
requirement for either or both types of families. Except in the case of an elderly
or disabled family, welfare assistance is not counted in determining whether the
family meets the minimum income requirement.
- Employment requirement.
Except in the case of elderly and disabled families, one or more adults in the
family who will own the home is currently employed on a full-time basis and has
been continuously employed on a full-time basis for at least one year before commencement
of homeownership assistance.
- Additional PHA eligibility requirements.
The family meets any other initial eligibility requirements set by the PHA.
- Homeownership counseling. The family must attend and satisfactorily
complete the PHA's pre-assistance homeownership and housing counseling program.
What are monthly homeownership expenses?
Monthly homeownership expenses include:
1. Mortgage principal
2. Mortgage insurance premium,
3. Real estate taxes and
4. PHA allowance for utilities,
5. PHA allowance
for routine maintenance costs,
6. PHA allowance for major repairs and replacements,
7. Principal and interest on debt to finance major repairs and replacements
for the home, and
8. Principal and interest on debt to finance costs to make
the home accessible for a family member with disabilities if the PHA determines
it is needed as a reasonable accommodation.
much financial assistance can PHAs provide in each voucher?
The PHA uses
its normal voucher program payment standard schedule to determine the amount of
subsidy. The housing assistance payment (HAP) is the lesser of either the payment
standard minus the total tenant payment or the family's monthly homeownership
expenses minus the total tenant payment. The PHA may make the HAP payment directly
to the family or to the lender.
What is the total monthly
For purposes of calculating the amount of financial assistance
to be provided by the PHA, the monthly tenant payment is generally 30% of the
family's adjusted monthly income. For more information about how to determine
total tenant payment contact your local PHA.
I have to pay each month?
You have to pay at least the total tenant payment
(approximately 30% of adjusted monthly income). However, if you purchase a home
that has monthly expenses higher than those covered by the total of the financial
assistance provided by the PHA together with the tenant payment (30% of income),
any additional amount will have to be paid by the family. To keep families from
purchasing a home that will result in a payment the family cannot afford, the
PHA, may set affordability limits for their program.
families have to purchase a home in the jurisdiction where the PHA issued the
No. Families that are eligible for homeownership assistance may
purchase a home outside the initial jurisdiction if the PHA in the new jurisdiction
administers the homeownership voucher program and receives new families into the
program. However, the family may only use the voucher to purchase a unit in an
area where the family is income eligible at admission to the program.
How long can a family receive assistance under this program?
There is no time limit for an elderly household or a disabled family. For all
other families, there is a mandatory term limit of 15 years if the initial mortgage
incurred to finance purchase of the home has a term that is 20 years or longer,
and for all other cases the maximum term of homeownership assistance is 10 years.
What regulations cover this program?
are found in 24
CFR Part 982 (particularly see sections 625-642).