| The homeownership program allows first-time homeowners to use the voucher subsidy to meet the monthly mortgage payment and other homeownership expenses.
Who is eligible?
Anyone who receives Section 8 tenant-based rental assistance, and who lives in the Phelps County PHA jurisdiction.
Additionally, you must:
1. Be a first-time homeowner. This may be waived for disabled families, if the program is necessary as a reasonable accommodation.
2. Currently have a minimum level of income (equal to 2,000 hours of annual full time work at minimum wage $10,300 per year). This cannot include welfare assistance, except for elderly or disabled.
3. Have a history of full-time employment (one or more family members is currently employed at least an average of 30 hours per week and has been continuously employed for the last year). Breaks in employment will be considered. This requirement is waived for elderly and disabled.
4. Have not defaulted on a mortgage securing debt to purchase a home under a homeownership assistance program.
5. Be willing to attend and complete eight hours of homeownership counseling. Your family can assist with this.
What type of home is eligible for purchase?
1. An existing home or one that is under construction at the time the Phelps County PHA determines the family eligible for homeownership is eligibile for the program.
2. Only single unit property or single dwelling unit in condo are eligibile under the program.
3. The home must pass two inspections: A. Housing Quality Standards inspection conducted by Phelps County PHA to determine current condition is decent, safe and sanitary and B. Independent Professional Inspection, paid for and selected by the homeowner.
How much can the homebuyer purchase?
1. The monthly payment is based on the current payment standards used by Phelps County PHA. The monthly homeownership assistance payment is calculated according to HUD regulations. Homeownership expenses will be considered in the calculation: principle interest, taxes, insurance, mortgage insurance, homeowner's association fees, Section 8 utility allowance, routine maintenance, major repairs and costs to make the unit accessible for disabled families (if applicable).
2. The family is responsible for all homeownership expenses not covered by the Housing Assistance Payment. If homeownership expenses exceed the eligible amount of Phelps County PHA payment, the family pays the difference out-of-pocket.
How is the purchase financed?
1. The family is responsible for securing its own financing. The financing provided must be insured or guaranteed by the state or federal government. Balloon payment mortgages and variable interest rate loans will be prohibited.
2. Voucher funds may not be used to assist with financing costs (downpayment, closing costs, etc...).
3. Phelps County PHA has the right to approve the loan terms and the lender.
4. Maximum term of assistance: 15 years if the initial mortgage has term of 20 years or longer, or 10 years in all other cases. Time limit does not apply to elderly or disabled households.
Continuing assistance requirement:
1. Comply with the terms of the mortgage.
2. Comply with use and occupancy standards including:
A. Serving as the family's residence
B. Reporting changes as to who is living in the home
C. Agreeing not to sublet or lease
D. Supplying information to Phelps County PHA on request concerning refinancing of debt, payment of debt, sale or transfer of any interest in home and homeownership expenses
E. Providing notice of a move-out
F. Providing notice of a default
This voluntary program will offer opportunities for families who are interested in homeownership.
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