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
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