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Section 8 Housing Assistance Vouchers Can Be Used To Purchase A House

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

I have written about how Section 8 Housing Assistance Vouchers Can Be Used To Purchase A House in the past, however, this continues to be a mortgage program which is not talked about much and not very well know.  The Section 8 Voucher Mortgage Assistance Programs is offered by only a few Housing Finance Authorities in CT. (see list below).  The Section 8 Voucher Mortgage Assistance Program enables a renter who is presently receiving a Section 8 Voucher for rental assistance, to apply the Section 8 Voucher funds towards a monthly mortgage payment on a home. The guidelines for the Section 8 Voucher Mortgage Assistance Program from State to State may be different, but they will all share one thing in common, the use of the Section 8 Voucher Program towards the purchase of home.   

In Connecticut the Connecticut Housing Finance Authority (CHFA) calls their program the "Section 8 Housing Choice Voucher Homeownership Program".  This program benefits both the Section 8 Voucher recipient, and Housing Authorities throughout the State.

  • The Section 8 Voucher recipient is able to use the Section 8 Voucher funds to subsidize a substantial percentage of the monthly mortgage payment, and
  • Housing Authorities are able to free up rental housing units for other state residents in need of affordable housing. 

In Connecticut the CHFA "Section 8 Housing Choice Voucher Homeownership Program" is available to current renters who have a Section 8 Voucher and can meet the requirements for a CHFA Mortgage.  Section 8 Voucher recipients also need to obtain approval from the local Public Housing Authority (PHA) who issued their Section 8 Voucher to use the Section 8 Voucher towards the purchase of a home.

In Connecticut Section 8 Voucher holders who wish to use their Section 8 Voucher for the purchase of a house must:

  • Be First Time Homebuyers, or purchase a home in a CHFA Targeted Area.
  • Go through a counseling and credit assessment to determine whether they are ready to purchase a home.
  • Meet CHFA Income Limits 
  • Must live in the property year-round
  • Property must meet CHFA Sales Price Limits, and be one of the follow properties:
    • Single-family homes, townhouses, or Planned Unit Development (PUD)
    • Approved FHA Condominiums
    • Two-to four family homes that have been used as a residence for the past five years, or newly constructed
    • Two family homes in a CHFA Targeted Area
    • Mobile homes that meet FHA Guidelines
  • Attend a three-hour, Homebuyer Education Class prior to the loan closing

NOTE:  In Connecticut Section 8 Vouchers cannot be used to purchase recreational, vacation, investment, or commercial property.

The current CHFA Subsidized Interest Rate applies to the "Section 8 Housing Choice Voucher Homeownership Program" mortgages, and are eligible for Down Payment and Closing Cost Assistance (DAP) loans if the Borrower does not have sufficient down payment and/or closing cost funds. 

As I stated above not all Housing Authorities within a State participate in the Section 8 Voucher Program.  So Section 8 Voucher holders who want to use their Section 8 Voucher to purchase a home, need to first contact the local Public Housing Authority who issued their Section 8 Voucher to see if their Public Housing Authority participates in the program.  Currently in Connecticut only 11 Public Housing Authorities participate in the "Section 8 Housing Choice Voucher Homeownership Program"  Those PHA's are:

  • Ansonia
  • Bridgeport
  • Bristol
  • Danbury
  • Derby
  • Hartfort
  • Meriden
  • New Haven
  • Norwalk
  • West Hartford
  • Willimantic

As you can see this little known program offers a major benefit to Section 8 Voucher recipients.  Hopefully this information will make more Section 8 Voucher recipients aware that Section 8 Housing Assistance Vouchers Can Be Used To Purchase A House, and help them achieve something they might not have thought possible, the purchase of their own home.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by

George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments (7)

Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

I am sure this is information that many are not aware of with the Section 8 program George Souto .

Jan 29, 2017 09:29 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Interesting news George, I get a lot of requests from people in this program, but after looking over the paperwork, I have yet to see and advantage to the landlord.  Maybe it is good for sales at least.

Jan 29, 2017 09:31 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Amazing CT program, George that is such a benefit for potential homeowners who have the will but have not been offered the way!

Jan 30, 2017 05:28 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning George.  I was unaware of this.  But, I will keep this in mind as it may come in useful.

Jan 30, 2017 06:19 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I had no idea, George... then again, I don't work the rental market or even the price point of where most of our Section 8 housing is. But now I will find out more from our lenders locally to see what's what.

Jan 30, 2017 08:47 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

This is news to me. I would rather know there were more/better programs to benefit our Vets and their families who deserve home ownership.... just saying. 

Feb 01, 2017 01:23 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning George. This is incredible. I never knew about this. Not sure how I feel about it but you taught me something today.

Feb 06, 2017 04:54 AM