Section 8 Homeownership Program

What are homeownership vouchers?
Homeownership vouchers assist first-time homeowners with their monthly homeownership expenses. The home must pass initial housing quality standards inspection conducted by the South Central MN Multi-County HRA and an independent home inspection before the HRA may approve the purchase by the family.

Eligibility Criteria for participation in the Section 8 Homeownership program:

• Be a participant in the South Central MN Multi-County HRA Section 8 Program.
  
• Be a participant in the Housing Choice Voucher Family Self-Sufficiency Program.
  
• Program participants must be in full compliance with their rental lease and Section 8 program requirements.
  
• Program participants must terminate their lease arrangement in compliance with the lease.
  
• Family can have no prior default on a mortgage through a homeownership program.
  
• 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.
  
• Must successfully complete the Home Stretch Program.
  
• Family must demonstrate a monthly gross income sufficient to meet homeownership and other family expenses. 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, currently $10,300. 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, currently $6,624 (552 x 12).
  
• Public assistance cannot be counted when qualifying for the minimum income requirement.
  
• Have no outstanding debt to SCMMCHRA or any other Housing Authority for previous damages or unpaid rent.
  
• Submit to and pass a criminal background check for all adult household members 18 and older.
  
• Be a first time homebuyer as defined by HUD. HUD defines a first time homebuyer as a family that has not owned or had ownership interest in the past three years.
  
• Once a property has been chosen, it must undergo and pass a housing inspection by a SCMMCHRA Housing Inspector. An additional home inspection by a certified inspector is also required.
  
• Family must live in the home they purchase and comply with mortgage requirements.
  
• Family must comply with annual re-certification requirements and appointments.
  

  The following types of financing will be prohibited:

  • Financing which includes balloon payments
    
  • Private seller financing

  The following types of financing may be prohibited:

  • Interest rates of more than 1 point above current Fannie Mae
  
  
  • Variable interest notes
  
  
  • 90-day delivery note rate

  How much financial assistance can the HRA provide?
  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.
  
  How long can a family receive assistance under this program?
  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 home-ownership assistance is 10 years. There is no time limit for an elderly household or family with a disabled person.