Home Ownership Vouchers
The
To participate in the program, a person must be a first-time homebuyer and meet income and credit score guidelines. For example, in 2022, a family had to earn at least
PUBLIC HOUSING AGENCIES
HUD has turned over the administering of this voucher program to local public housing agencies (PHA). They exist to help low-income families, the elderly and people with disabilities find safe and affordable housing. They may even provide supportive services such as job training, financial counseling and health care referrals.
PHAs must follow the HU Destablished guidelines and federal regulations. PHAs may set additional criteria or eligibility requirements for people who want to participate in the voucher program. For example, some require a minimum level of savings and no debt.
Not every PHA offers the voucher program in their jurisdiction. The program is also subject to funding availability and may not always be accessible. Sometimes there is a waiting list to receive assistance through the program.
COUNSELING AND EDUCATION
The voucher program provides counseling and education to participants on topics such as budgeting, credit repair and home maintenance. Participants must attend homeownership counseling and education sessions before purchasing a home.
Some of these classes are available online and fees, if any, are usually very small.
Anyone who provides this counseling and education must have a HUD certification and work for a HUD-approved housing counseling agency.
AMOUNT OF BENEFITS
The voucher program allows families to choose a home, though they are encouraged to consider several housing choices. The PHA will approve any final housing choice as it must meet an acceptable level of health and safety. They will inspect the home and make sure the price is reasonable.
The PHA calculates how much housing assistance is allowable. It is typically based on the family's monthly adjusted income. They will pay a portion of the monthly mortgage payment, though homeowners are expected to pay about 30% of their monthly income themselves.
HUD also provides a
Assistance is usually limited to a 10to 15-year period after which time the home owners have to pay the full amount of the mortgage.
While there are a lot of steps to the process, it can help people build equity in their own homes rather than see the money lost to rent.
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