Northeast Washington Housing Solutions - Section 8 HomeOwnership

FACT SHEET

SECTION 8 HOME OWNERSHIP PROGRAM

GENERAL PROVISIONS

Northeast Washington Housing Solutions (“NEWHS”) permits eligible participants in the Section 8 Housing Choice Voucher Program, the option of purchasing a home with their Section 8 assistance rather than renting. The homeownership option is limited to ten (10) Section 8 families, for its first year of operation.

Families may receive Section 8 homeownership assistance for up to 15 years on 20 year or longer mortgage and 10 years for mortgages less than 20 years. However, term limit does not apply to elderly or disabled families.

FAMILY ELIGIBILITY REQUIREMENTS

First-Time Homeowner.

A "first-time homeowner" means that no member of the household has had an ownership interest in any residence during the three years preceding commencement of homeownership assistance. However, a single parent or displaced homemaker who, while married, owned a home with a spouse (or resided in a home owned by a spouse) is considered a “first-time homeowner”.

Minimum Income Requirement.

Under HUD’s established minimum income requirements, with the exception of disabled families, up until the time the family begins receiving homeownership assistance, the head of household, spouse, and/or other adult household members who will own the home, must have a gross annual income at least equal to the Federal minimum wage multiplied by 2000 hours (presently $10,300).

NEWHS’ Minimum Income Requirement

Under NEWHS’ established minimum income requirement, the head/co-head of household, spouse, and/or other adult household members who will own the home, must have a gross annual income at least equal to the 50^th percentile of the area median income.

However, a family that meets the applicable HUD minimum income requirement, but not the higher income standard established by NEWHS, will be considered to satisfy the minimum income requirement if the family is able to demonstrate that it has been pre-qualified or pre-approved for financing. The pre-qualified or pre-approved financing must meet all of NEWHS’ established homeownership program requirements.

Employment History.

The home owner must be employed full-time (an average of 30 hours per week) and has been continuously employed for one year prior to execution of the sales agreement.

Participation in IFF Program.

Homeownership participants are encouraged to participate in NEWHS’ Independent Family Futures Program.

Section 8 Participant in Good Standing

Participants in the Section 8 Housing Choice Voucher Program will be ineligible for participation in the Section 8 Homeownership Program in the event any debt or portion of a debt remains owed to NEWHS or any other Housing Authority. If a head of household, spouse, or other adult household member, who will execute the contract of sale, mortgage and loan documents, has previously defaulted on a mortgage obtained through the Section 8 Homeownership Program, the family will be ineligible to participate in the homeownership program.

Downpayment.

At a minimum, the participant will be required to provide $500.00 of the home purchase price as a downpayment from the family’s personal resources, (i.e. savings, IDA account or IFF Escrow).

FAMILY PARTICIPATION REQUIREMENTS

Homeownership Counseling Program.

Families must complete NEWHS’ homeownership counseling program which includes: home maintenance; budgeting and money management; credit counseling; negotiating purchase price; securing mortgage financing and how to identify predatory lending; finding a home and information on Real Estate Settlement Procedures. NEWHS may require families to participate in a NEWHS-approved homeownership counseling program on a continuing basis.

Type of Home.

A qualifying home includes: a new or existing home, a single-family home, a condominium, a home in a planned use development, a cooperative, or a manufactured home to be situated on a privately owned lot. Housing where the family will not also own fee title to the real property on which the home is located, if the family has the right the occupy the site for forty years and the home has a permanent foundation.

Inspections Required.

Two inspections required: First, A Housing Quality Inspection by NEWHS and an Independent Inspection from a NEWHS approved certified inspector.

Financing Requirements.

Families must use NEWHS approved lenders with financing terms being submitted to and approved by NEWHS prior to close of escrow.

For more information contact: Yvette Buckley at 252-7124 or ybuckley@spokanehousing.org