Hello BP community, My Fiancé and I would like to purchase our 1st investment home using our section 8 voucher. I know that we can use it anywhere in the U.S, but I'm not sure what steps are needed to actually pull this off, or what the stipulations are involving this type of purchase.
If anyone has any knowledge about this process we would truly appreciate your advice. Thanks in advance.
Please educate me :) As a landlord I have experience receiving rent from Sec. 8 Housing but not purchasing a home. Does Sec. 8 have some sort of down payment assistance to help you buy a house?
You will get your best, most reliable information on this process by calling your local housing office. However, a quick Google search led me to this initial list of requirements, which can vary by location:
- You must be enrolled in the tenant-based program.
- You must have successfully paid rent in the tenant-based program for a year and not be behind in payments.
- You must be a first-time homebuyer. Applicants who have purchased a home before are not allowed to use the voucher for another house.
- Unless you are elderly or disabled, you must be currently employed, and have over a year of continuous full-time employment. This means you must have worked at least 30 hours a week on average before applying for the homeownership help.
- You must meet the Minimum Income Requirement. Your annual family income must at least equal the Federal minimum wage amount times 2,000 hours. Disabled families must have an annual income of at least the Supplemental Security Income rate multiplied by 12.
- You must not have violated any of the terms of the lease contract within the last 3 years.
- Attend homeownership counseling;
- Receive a homeownership certificate;
- Ratify a sales contract within 120 days and settle within 180 days;
- Obtain a mortgage from a lender;
- Pass both a Housing Quality Standards and Private Home Inspection; and
- Contribute 3% toward the purchase (1% must be from personal funds).
I would assume that the program is only for owner-occupied houses. Maybe save up for a down payment, or learn creative deals.. instead of trying to get the taxpayers to foot the bill for your investment. That program should absolutely be shut down.
Are you planning on occupying the home you purchase and renting out part of it?
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Thank you @Nicole W. I truly appreciate your advice. I'm going to follow up on everything you wrote. @Monica Young Yes, that is exactly what we are planning to do.
I think that's a great idea. You should go ahead and pursue it. If banks treat duplexes as single family homes, I wouldn't be surprised if the government does the same. If it's possible, maybe you can inspire others to use their vouchers that way as well. I don't know anything about it personally, but I'd be interested in seeing what your outcome is.
@Raymond Lewis Please keep us updated on this! Many of us are not familiar with this opportunity that you have, but are very curious to learn more about it.
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