Section 8 Housing And Renting to Own
Did you know that qualified Section 8 beneficiaries can use their Section 8 Housing Choice Vouchers for mortgage payments? However, they must first find an affordable home with a property owner willing to sell the house under the Housing Choice program.
Section 8 Housing Choice Vouchers
Section 8 of the Housing Act of 1937 is a program by the federal government that provides housing assistance for very low-income households and individuals. This program is overseen by public housing agencies or PHAs. It is a very popular housing assistance program that has thousands of applicants on waiting lists all over the country.
The program gives tenants a greater freedom in finding housing suitable for their household's needs. It is different from the public housing program, where PHAs approves certain properties beforehand, before providing the limited list to Section 8 participants.
Since it is a program managed locally by PHAs, application and requirements may vary from area to area. Some areas have their own preferences and restrictions which can put your name higher on the waiting list if you are a part of the must prioritize group.
The eligible tenant pays 30% of his monthly salary or 30% of the total earnings of the household to the landlord as part of the rent. The remaining balance will be paid by the PHA who manages your housing assistance through the Section 8 voucher.
When looking for prospective properties to rent using your Section 8 voucher, you must also consider checking some of the health and safety qualifications that the property must meet. These guidelines are set by HUD to ensure that the housing where Section 8 beneficiaries will reside in are safe and suitable. Once you find a suitable property, inform your PHA so that they can have it examined by independent inspectors.
If the property gets approval, it is time to negotiate the terms with the property owner. The PHA will help you with the negotiation, and they will sign a contract with the landlord as well. The contract they will sign signifies that the landlord agreed to be paid in part through the Section 8 program.
One of the main differences between the original Section 8 program and the Housing Choice program is the Housing Choice program's portability. It guarantees a qualified Section 8 tenant that if he or his family can find and eligible housing, the PHA will finance the rent; the resident is not restricted to operate only from a list of pre-approved rental properties. This characteristic bears another branch of the Housing Choice program, which is the Section 8 Housing Choice Voucher Homeownership program.
The Section 8 Homeownership Program
The program allows eligible Section 8 tenants to rent-to-own through the use of the voucher issued by the PHA to finance a part of the house mortgage on a modest house of the owner's choice.