Norcross, GA · Member since 2016 · 4 posts · 0 votes
Hi everyone
I have a section 8 tenant in GA. She have rented my house for a few years now, and she expressed interest on buying my house. I still have a mortgage on it. How do I go about putting this deal together and would section 8 continue to contribute to the new payments?
Investor · Las Vegas, NV · Member since 2013 · 131 posts · 63 votes
10y
@Judy Le set a price you'd sell the house for. Tell her to get pre approved for a loan or have her look around for state grants or programs that she might qualify for, sometimes they have no money down grants and stuff like that. Then if she qualifies for the amount you'd be willing to sell for I'm sure a local title company can help you with a contract. Section 8 program is only to help low income tenants rent, this program is not to help with mortgage payments. I think if they're qualified for section 8 voucher program it would be kind of hard to qualify to buy a house, but I could be wrong. Hope this helps!
Investor · Las Vegas, NV · Member since 2013 · 131 posts · 63 votes
10y
@Judy Le set a price you'd sell the house for. Tell her to get pre approved for a loan or have her look around for state grants or programs that she might qualify for, sometimes they have no money down grants and stuff like that. Then if she qualifies for the amount you'd be willing to sell for I'm sure a local title company can help you with a contract. Section 8 program is only to help low income tenants rent, this program is not to help with mortgage payments. I think if they're qualified for section 8 voucher program it would be kind of hard to qualify to buy a house, but I could be wrong. Hope this helps!
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
10y
Judy Le, why would you consider throwing away a revenue producing asset? Is the property cash flowing every month? Is it in good shape with no deferred important maintenance needed now? If yes,keep it and let the tenant follow their pipe dreams of home ownership somewhere else.Don't make their problems yours.If she needs section 8 to pay her bills,she can't safely finance a stick of gum let alone your property and you'd be headed for a long an expensive foreclosure before long.Now if YOU need to sell because you can't afford to repair it or it will need major repairs like a new roof,appliances,etc. and you haven't been setting aside money every month to pay for them well then that's different.Put it on the Bigger Pockets marketplace and let one of us buy it from you and relieve you of the burden.Good luck.
thank you for the response Joe Abughazaleh. This tenant want me to owner finance for her or hold the note. She does not qualify for a loan right now.
Step away from this nonsense.
Unless she has a source of income to actually buy this, that she hasn't declared to the local housing authority, I will bet that she wants to use her Section 8 deposits to you to purchase the house. and if she hasn't declared her extra income to section 8, then she's just defrauding the system.
You can either say "no" directly to her, or just say that you still have a mortgage and you can't enter into a lease purchase agreement for at least another 12 years.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 936 votes
10y
The "Housing Choice Voucher Program" is the standard section 8 rental program.
It's hard to see why you would want to lend to someone who doesn't otherwise qualify for a loan. Don't do it! Your hard-earned money is screaming, "No, Judy!!! Don't send us away. We will never see you again!!!!"
Rental Property Investor · Phila, PA · Member since 2015 · 276 posts · 111 votes
10y
stay away @Judy Le that just smells 'not legal' and when you mess with federal govt funds, you do go to jail/prison. Hold onto your asset and if you want to sell it, sell it on the open market. Not this shifty stuff. If tenant wasn't on subsidized housing, do you think tenant would be paying their full rent amount on time, every month? As a section 8 tenant, you'll never know the answer. Tenant scamming u
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
10y
The Housing Choice Voucher Program does allow folks on this program to purchase housing. However, they need to be able to obtain a mortgage to be eligible for this. Since it appears your tenant cannot achieve this, they would not qualify for this aspect of the program.
If you need further information on what your tenant wishes to do you can always contact your local Housing Authority and ask to speak with your tenants caseworker regarding the qualifications for this.