Section 8 Helps Participants Get Mortgages

Did you know that people on Section 8 have the ability to use that voucher to make mortgage payments? I will tell you how that works in this video, why this is good for landlords and I’ll show you a clip at the end from a collab I did with a Section 8 consultant about this subject and his take on how well the program works. I also have a Near Success Story for you near the end. of the video.

What is the Housing Choice Voucher Homeownership Program?

HUD (Housing and Urban Development) has funds set aside for PHAs (Public Housing Authorities, or Section 8 offices) to make mortgage payments instead of rent payments.

In order for an HCV (Housing Choice Voucher or Section 8 tenant) participant to use the program, they have to be a first-time home buyer, the participant has to have a full-time job, which is 30 hours. They have to make a minimum income. In 2022 that income minimum is $14,500. If they are elderly or disabled their income needs to be $10,092.

Then they need to be with a PHA that offers a Family Self Sufficiency program. Most of the Section 8 offices do not offer this.

If their office does offer the Family Self Sufficiency program, BINGO! It’s like having a personal coach. Here is the mentorship Ann Arbor Housing Commission offers its participants:

The HUD Homeownership program requires that the family needs to be able to secure a loan just like anyone else. That means a decent credit score and money down. They need to find a house and find a lender. Once they find the house, the Public Housing Authority (PHA or Sectoin 8 office) has to approve the suitability of the house compared to the participant’s income and have a Section 8 inspection and a private inspection.

The HCV Homeownership program will help the family make mortgage payments for 10 (I also read somewhere it’s for 15) years if the loan is for 20 years or more.

How much will the program help? Rule: Payment standard (voucher amount) minus total tenant payment. If the payment standard is $1,200 and the tenant is required to pay 30% of their income toward rent, and that amount comes to $500/month, the program will pay $700/month toward the mortgage payment instead of to the landlord, either directly to the lender or to the tenant to pay the lender.

My Favorite Part of this Program

My favorite part of this program is that tenants have to Agree to comply with the terms and conditions of your lease. (Ann Arbor). So shouldn’t we landlords ENCOURAGE our participants to be in this program? All the more incentive to follow the lease.

About the Collab

Years ago I heard wind of the HUD Homeownership program, but no one could give me any details. But then I was doing a video collab with Jay. Now Jay is a paid consultant who helps people navigate Section 8. www.Section8Consulting.com. For TWO YEARS I begged this guy to do a collab with me. It finally worked. Look at my intro about him to know who he is. Great back story. But five minutes into our Youtube live on his channel, that has way more followers than my channel, he launched into something way over my head…this very subject. So after Jay and I did the collab, I decided to learn all that I could. The more I learn though, the more I realize I don’t know.

What I have decided on this journey of learning about this program is that I think I finally figured out what I want to be when I grow up. I want to lead the department that helps get Housing Choice Voucher (Section 8) recipients OFF THE SYSTEM! I want to mentor them myself on homeownership. I know how hard change is and I realize few people are really up for it. But if I could get anyone through the program, WOW, what a service that would be to that person and to mankind and their own future generations. So gratifying. One can dream!